Mailing Services and Fulfillment Definitions/Glossary

Active Stock
Goods in active pick locations and ready for order filling.

to top TOP

Activity-Based Costing
Activity-based costing (ABC) is a method of allocating costs to products and services. It is generally used as a tool for planning and control. It was developed as an approach to address problems associated with traditional cost management systems that tend to have the inability to accurately determine actual production and service costs, or provide useful information for operating decisions.

to top TOP

Address List
An address list in a digital list of addresses utilized for mailing. The list may be in a wide variety of formats such as those used in spreadsheets, databases, word processors, and personal information managers.

to top TOP

Advanced Planning and Optimization (APO)
APO is a planning tool that aids businesses in effective decision making. These software systems cover demand planning, supply planning, and manufacturing planning and scheduling in order to aid overall planning for the business.

to top TOP

Advanced Shipment Notification (ASN)
ASNs are used to notify a customer that a shipment has taken place. Most often, ASNs will include details about the shipment, and have mostly moved from paper based to electronic notification.

to top TOP

Average Cost
Average cost usually refers to average total cost, which is the total cost of production of a good or service (including the costs of fixed inputs and variable inputs) divided by the quantity produced.

to top TOP

Back Order
Back order is a system used by suppliers when stock is not available at the time of order to save a store from having to place another order.

to top TOP

Barcode
A barcode is a printed code consisting of a series of vertical bars that vary in width. Barcodes are capable of being read and decoded by barcode scanners. Barcodes are used to identify retail sales items, identification cards, library books and other products. They are also utilized to manage work in progress, to track documents and for many other automated identification applications.

to top TOP

Barcode Scanner
A barcode scanner, or barcode reader, is a computer peripheral for reading barcodes printed on various surfaces. Like a flatbed scanner, it generally consists of a light source, a lens and a photo conductor translating optical impulses into electrical ones. Additionally, nearly all barcode readers currently produced contain decoder circuitry analyzing the barcode’s image data provided by the photo conductor and sending the barcode’s content to the scanner’s output port.

to top TOP

Database
A database is a collection of information stored in a computer in a systematic way, such that a computer program can consult it to answer questions. The software used to manage and query a database is known as a database management system (DBMS). The properties of database systems are studied in information science.

to top TOP

Direct Impression Addressing
Direct impression addressing involves printing an address directly on the mailing piece for a more professional look. The mailing piece will have no labels.

to top TOP

Drop Shipping
Drop shipping is what a product is shipped directly from the manufacturer or distribution center. The merchant is not required to carry stock. This is popular with companies that don’t have the space or the employees necessary to pack and ship products. The best drop shippers will not brand the product with anything associated with their company – rather, the shipping package will look as if it came from the merchant.

to top TOP

Fulfillment House
A fulfillment house is a third-party company that performs order fulfillment including storage, picking, packing, shipping and tracking of all orders. Generally, a merchant would have all their products shipped directly to the fulfillment company where the products would be counted and stored until future use. Fulfillment companies will also build/assemble kits or products out of the product parts the merchant has shipped to them. There are numerous advantages to using a fulfillment house.

to top TOP

Fulfillment Process
The fulfillment process is the process that a fulfillment house will use to receive and ship customer products.

to top TOP

Mailing Center
A mailing center is a part of a fulfillment or shipping company where they have the skill, experience and technology to ship a high volume of packages quickly, efficiently and accurately.

to top TOP

Mailing Service
A mailing service company will usually provide a one-stop shop for all your printing and mailing needs. Modern mailing services include bulk mail, digital printing, storage, order fulfillment and kit assembly among other services.

to top TOP

Minimum Order Standards
Minimum order standarads are the minimum volume of orders that a fulfillment or mailing house requires to process the business request.

to top TOP

Order Processing Fees
Order processing fees reflect the cost of shipping items. Usually these are based on the number of orders filled, though adjustments may be made for the number of items in each package.

to top TOP

Packing
Typically packing involves placing products into containers (boxes) for shipment based on a pick sheet or invoice. The packer ensures the order being shipped has been packed accurately and in a manner that will prevent damage in transit.

to top TOP

Shipping Docks
A shipping dock is a loading dock where large trucks, including semi-trailer trucks, can back into and unload product – often with the aid of a forklift. Many shippers charge less when shipping to a loading dock.

to top TOP

Storage Costs
Storage costs are the costs of storing products, parts, packaging and anything associated with the packaging and shipping of product.

to top TOP

Warehousing
Warehousing is the process of storing product before it is to be used. Generally, warehouse companies will have technology that tracks all product locations and even keeps inventory control.