Key Terms & Phrases

Anniversary Billing Some customers prefer anniversary billing because they are billed when the goods are received into the warehouse facility and on each monthly anniversary date that the goods are in storage.
Average Inventory Average inventory is typically the inventory at the beginning of a period and the inventory at the ending of a period divided by two.
Bonded Warehouse A bonded warehouse is a secured area where goods are stored or further manufactured without payment of duty.
Case Picking Case picking is the gathering of full cartons or boxes during the order fill function within a warehouse/distribution operation. At Palisades Logistics, the percentage of case picking versus pallet picking is important for accurately calculating handling rates.
Cross-Docking Palisades Logistics provides cross-dock service unloading goods from trucks, reloading the goods to different trucks for shipment to their next destination.
Cycle Count Palisades Logistics warehousing partners perform routine counts of inventory to maintain inventory accuracy. Employees physically count the number of individual stock keeping units in storage and reconcile counts against the WMS system.
Drayage Palisades Logistics provides drayage services moving goods form ports and intermodal yards relatively short distances to warehouses and customer facilities.
EDI-Electronic Data Interchange Palisades Logistics’s partners communicate with shippers via EDI to exchange purchase orders, invoices, shipping notices, etc.
Fulfillment Palisades Logistics provides fulfillment services by inventorying merchandise for companies who receive orders, pick, pack and ship small parcel or LTL direct to consumers or other channels such as retail.
Handling rates Handling rates are typically charged upon receipt of goods into the warehouse facility and include unloading, put-away, reinventory/relocation, picking and loading for shipment.
Import/Export Services Some warehouses within the Palisades Logistics network provide import services and customs clearance within their own customs-bonded warehouses. They are also capable of preparing export documentation and prepartion of goods for export.
Intermodal Palisades Logistics provides intermodal service by coordinating a shipper’s goods across multiple modes of transport. Overseas shipping containers can be loaded and unloaded from intermodal trains across the country, and once arrived at an intermodal yard then transferred onto truck chassis for movement to a customer.
Inventory Turns The most common formula used by Palisades Logistics for calculating inventory turns is annual volume divided by average inventory.
Pallet Picking Pallet picking is the gathering of full pallets while filling orders. The percentage of pallet picking versus case picking is important for determing handling rates. Picking full pallets of goods is less expensive on a per unit basis than picking individual cases of goods.
Pick and Pack Pick and pack is a term commonly used to describe the process of picking items to fill orders and packing them in cases for shipment to customers. Pick and pack is part of the order fulfillment function within warehouse facilities that provide these services to Palisades Logistics.
Public Warehouse A public warehouse provides storage and distribution services to a number of companies who do not wish to own and operate their own warehouse or distribution center. A public warehouse will collectively handle the goods of a number of different companies providing warehousing, inventory control, order fulfillment and value added services.
SKU-Stock Keeping Unit An sku is an individual item. Palisades Logistics refers to each distinctive item in storage as a stock keeping unit and tracks them individually –most commonly either by piece, by case or by pallet.
Split Month Billing Warehousing partners sometimes offer to pro-rate storage charges based on when products are received into the warehousing facility. For example, product received between the first and the 15th are charged the storage rate for the full month. Product received after the 15th of the month is charged half of the thirty-day rate.
Standard Warehouse Terms and Conditions Legal document explaining the limited liability of the warehouse and the rights of the depositor (shipper) who has placed his goods in the care of the warehouseman. It outlines liability and limitation of damages, storage and handling charges, extra services, severability, lien, etc.
Storage Rates Fees charged per unit for storage of product. Storage rates are typically based on the number of days in inventory, inventory turns, stackability of pallets, etc.
Third Party Logistics Third Party Logistics or 3PL provider is a company that provides one or a variety of logistics services for companies that can not or do not wish to provide these services for themselves. Palisades Logistics is a 3PL providing warehousing, transportation, fulfillment services and supply chain consultation to primarly manufacturers and shippers of food and consumer goods.
Transload Transload, similar to cross-docking, is unloading goods from railcars or containers and reloading onto a truck for delivery to the next destination. It could involed a bulk shipment such as coal loaded to rail at the mine and transferred to a ship at a port. Palisades Logistics provides transload services at some locations.
Transportation Management When shippers do not have the resources or expertise to manage and plan for their own transportation needs they turn to Palisades Logistics for outsourcing their TL, LTL, intermodal, temperature control and flatbed shipping needs.
Value Added Services Many third party logistics providers offer value added services to their customers. Examples are building end-of-aisle displays, kitting, labeling, etc.
WMS-Warehouse Management System Palisades Logistics’s partners use sophisticated Warehouse Management Systems for managing every functional task within the operation such as inventory control, labor planning, product tracking, invoicing, and other operation functions.

For additional help and explanation of commonly used logistics and supply chain terms, please refer to Inbound Logistics’ Glossary of Supply Chain Terms.