Distribution Glossary of Terms

Sharon Hayford

By Sharon Hayford, Content Writer

Last Updated August 27, 2025

4 min read

Acronyms

Acronym 

Term 

Definition 

PO 

Purchase Order 

Document sent to the supplier to authorize a purchase. 

BOL 

Bill of Lading 

Signed contract used in freight shipping. 

ASN 

Advanced Shipping Notice 

Document providing detailed shipping information prior to delivery. 

SKU 

Stock Keeping Unit 

Unique identifier for each product. 

POD 

Proof of Delivery 

Documentation issued upon product delivery. 

OTIF 

On-Time, In-Full 

Compliance metric for suppliers. 

KPI 

Key Performance Indicator 

Metric for supplier compliance. 

EDI 

Electronic Data Interchange 

Automated, electric exchange of supply chain documentation. 

FOB 

Free on Board 

Shipping term to define ownership/liability of transported goods. 

UPC 

Universal Product Code 

12-digit barcode number that identifies a product. 

MOQ 

Minimum Order Quantity 

Minimum amount of product a supplier will sell. 

3PL 

Third-Party Logistics Provider 

A carrier contracted by either supplier or distributor to handle transportation and logistics. 

LTL 

Less Than Truckload 

The freight method of shipping multiple shipments in one truck. 

FTL 

Full Truckload 

The freight method of utilizing one truck for one shipment. 

GTIN 

Global Trade Item Number 

Unique identifier for a product. 

GS1 

General Specifications 

Organization that standardized the UPC barcode. 

GLN 

Global Location Number 

Identifying number for company locations. 

VMI 

Vendor Managed Inventory 

Vendor or manufacturer is responsible for managing inventory. 

DC 

Distribution Center 

Location where products are stored and shipped.  

RDC 

Redistribution Center  

Secondary location where products are stored and shipped. 

MABD 

Must Arrive By Date 

Deadline for delivery. 

MFC 

Mixed Freight Consolidation 

Combining multiple smaller loads into one freight type. 

NMFC 

National Motor Freight Classification 

An organization that manages the standards for LTL shipping, such as minimum packaging requirements and classification requirements. 

SSCC 

Serial Shipping Container Code 

Identifying number for a single logistics unit (e.g. pallet). 

CPFR 

Collaborative Planning, Forecasting, Replenishment 

Supply chain management strategy. 

OS&D 

Overages, Shortages, and Damages 

Overarching term for shipping infractions. 

DSD 

Direct to Store Delivery 

Delivery process that the supplier handles directly.  

GSL 

Guaranteed Redistributed Shelf Life 

Amount of time calculated that a product will last—usually related to pharmaceuticals and food products.  

TTR 

Temperature Tracking Recorder 

Process for tracking and recording product temperatures. 

Terms

Term 

Definition 

Ti-Hi 

Standard pallet configuration: stacking pattern of items on a particular pallet platform. 

Cross-Docking 

Logistics method where product is transferred directly from inbound to outbound carriers without storing. 

Chargeback/Deductions 

Charges added by retailer or distributor to the supplier invoice due to noncompliance or other infractions.  

Allowance 

Charges added to an invoice due to previously agreed upon terms. 

Lead Time 

Time between the start of a process and its conclusion. 

Direct Distribution 

The supplier distributes their own product. 

Indirect Distribution 

The supplier hires a distributor to sell their product. 

Exclusive Distribution 

Distributors who work within a specific geographical area. 

Intensive Distribution 

Distribution type that handles multiple product types and multiple retailers. 

Dual Distribution 

Distribution type that is a combination of direct and indirect distribution.  

CPG 

Consumer Packaged Goods, such as PepsiCo, Procter & Gamble, and Coca-Cola, for example.  

Routing Guides 

Guide from the distributor relating transportation and carrier expectations and requirements of the supplier.  

Shipping Windows 

Expected timeframe in which the product should arrive at the DC. 

Intermodal Transportation 

Movement of goods using two or more modes of transportation. 

Lumper Service 

Third party service contracted at distribution centers to unload trucks. 

Dunnage 

Packing material used to protect goods in transit. 

Shelf-Ready Packaging 

Products and their packaging that requires no unpacking before being placed on retailer shelves. 

Unload Discrepancy Report 

Report sent to the supplier of product amount issues. 

Inbound Fill Rate 

Fulfillment requirement that measures the percentage of product that is delivered on time and in full. 

Unsaleables 

Products that are damaged or otherwise deemed unfit for sale. 

Spoilage 

Damage to products making them unfit for sale. 

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