Warehouse & 3PL glossary

Short, plain-English definitions of the words you’ll hear when you look for warehouse space or a 3PL. Updated 2026-10-25.

3PL (third-party logistics)
A company that runs warehousing and shipping for other businesses: receiving, storage, order fulfillment and often transport. Learn more
ASN (advance ship notice)
A notice sent to the warehouse before a delivery, listing what is coming so it can be received faster and checked.
Bonded warehouse
A U.S. Customs–approved warehouse where imported goods can be stored before duty is paid. Learn more
Clear height
The usable height inside a warehouse, measured to the lowest overhead obstruction. It sets how high pallets can be racked. Learn more
Cold chain
Keeping temperature-sensitive goods within a set temperature range from production to delivery. Learn more
Cross-docking
Moving freight from inbound to outbound trucks with little or no storage time. Learn more
Cycle count
Counting part of the inventory on a rolling schedule instead of shutting down for a full count.
Distribution center (DC)
A warehouse built to receive goods in bulk and ship them quickly to stores or customers. Learn more
Dock door / dock-high
A loading door at truck-bed height, so forklifts can drive straight into the trailer.
Drayage
Short-distance trucking of containers, usually between a port or rail ramp and a warehouse.
FBA prep
Preparing products to Amazon’s requirements (labels, bagging, bundling) before sending them to Amazon fulfillment centers.
FIFO / FEFO
First-in, first-out / first-expired, first-out: rules for which stock ships first. FEFO matters for food and medicine.
Floor-loaded
Cartons stacked directly on the container or trailer floor, not on pallets. Unloading takes longer and usually costs more.
Foreign-trade zone (FTZ)
A secure area treated as outside U.S. Customs territory for duty purposes, where goods can be stored or processed. Learn more
Kitting
Assembling several items into one ready-to-ship kit or bundle.
LTL (less than truckload)
Shipping a few pallets on a truck shared with other shippers. Learn more
NNN (triple net)
A lease where the tenant pays taxes, insurance and maintenance on top of base rent. Learn more
Pallet position
One space for one pallet in racking or on the floor — the usual unit for public warehouse storage pricing. Learn more
Pick and pack
Picking the items for an order and packing them for shipment; usually billed per order plus per extra item. Learn more
Public warehousing
Shared warehouse space rented by the pallet or month, with handling fees, and no long lease. Learn more
Putaway
Moving received goods to their storage location in the warehouse.
Reefer
A refrigerated trailer or container.
SKU
Stock keeping unit: one distinct product (for example one size and color).
Transloading
Moving cargo from one mode to another, e.g. from an ocean container into a 53 ft domestic trailer. Learn more
Warehouse receipt
A document from a warehouse confirming the goods it holds and the storage terms; important if goods are lost or damaged.
WMS (warehouse management system)
Software that tracks inventory locations, receiving, picking and shipping in a warehouse.