eCommerce Logistics & Fulfillment Deck
Key logistics concepts every eCommerce architect should know — click each question to reveal the answer.
1. Drop Shipping
A retail fulfillment method where the seller does not hold inventory; instead, when an order is placed, it is forwarded to a third‑party supplier that ships the product directly to the customer, letting the seller act as a demand‑generation layer.
2. Hub‑and‑Spoke Model
A distribution topology that uses a central hub warehouse for bulk storage and multiple spoke facilities for regional consolidation. Goods flow inward to the hub and outward to spokes, lowering inventory duplication while shortening delivery distance to customers.
3. Lead Time
The total elapsed time between the moment a purchase order is created and the moment the goods are available for use or sale. It combines supplier production time, transit time, receiving, and put‑away.
4. Freight Forwarding
A service that orchestrates international or domestic cargo movements on behalf of shippers—booking carriers, consolidating shipments, managing paperwork, customs clearance, and insurance—without owning the transport assets themselves.
5. Reverse Logistics
The set of processes for moving products backward in the supply chain (returns, repairs, recycling, or disposal) to recover value or ensure proper end‑of‑life handling while maintaining customer satisfaction.
6. Route Optimization
The use of algorithms and real‑time data to generate the most efficient sequence of stops for delivery vehicles, minimizing distance, cost, and time while respecting constraints such as time windows, vehicle capacity, and traffic.
7. Fulfillment Center
A warehouse designed for picking, packing, and shipping online orders at high velocity. It holds active inventory close to demand, integrates with order‑management systems, and often provides value‑adds like kitting, personalization, or same‑day cutoff times.
8. Sortation Center
A node focused on re‑sorting pre‑packed parcels by destination ZIP/postcode. It receives consolidated outbound loads, scans and groups parcels onto downstream line‑haul or final‑mile carrier routes, speeding regional delivery without storing inventory.
9. Last‑Mile Delivery
The final hand‑off step that moves a parcel from the closest fulfillment or sortation node to the customer’s doorstep. It is typically the most expensive and complex mile due to dispersed endpoints and high service expectations.
10. Inbound Transport
The flow of raw materials or finished goods into a facility (e.g., port → fulfillment center) covering supplier pickup, import clearance, and receiving appointments.
11. Inbound Transport vs Outbound Transport — Key Differences
• Direction – Inbound brings goods into inventory; outbound moves orders out to customers.
• Stakeholders – Inbound is supplier‑driven; outbound is customer‑driven.
• Service Level – Inbound targets replenishment efficiency; outbound targets delivery promise (speed & accuracy).
• Cost Drivers – Inbound costs hinge on bulk freight and inventory turns; outbound on parcel size, distance, and last‑mile complexity.
• Data Focus – Inbound forecasts demand and safety stock; outbound tracks order status and customer experience.
12. Last‑Mile Carrier
A specialized logistics provider (e.g., USPS, UPS, FedEx, bike couriers) that executes the final delivery leg, leveraging dense local networks and doorstep service capabilities.
13. Distribution Hub
A strategically located facility that receives bulk inbound freight, breaks it down, and re‑dispatches mixed loads to regional nodes or large retail outlets, balancing inventory and transportation efficiency.
14. Cross‑Docking
A practice where inbound trailers are unloaded and matched immediately with outbound trailers without long‑term storage, reducing handling, dwell time, and inventory holding costs.
15. Order Picking
The warehouse operation of retrieving specific SKUs and quantities from storage locations to assemble a customer order. Accuracy and pick path efficiency directly impact fulfillment speed and labor cost.
16. Parcel Manifest
A digital or printed list detailing every parcel in a shipment: tracking ID, weight, dimensions, declared value, and destination. The manifest is transmitted to carriers for billing, handover verification, and regulatory compliance.
17. Inventory Management
The discipline of planning, ordering, storing, and tracking stock to balance service level with carrying cost. It leverages forecasting, reorder points, safety stock, and real‑time visibility across channels.
18. Outbound Transport
The movement of completed customer orders away from a facility—from parcel sortation through line‑haul to last‑mile carriers—aimed at meeting promised delivery dates and customer experience targets.