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Distribution & Logistics Glossary
Key terms for wholesale distribution, supply chain, and B2B logistics.
3PL (Third-Party Logistics)
A partner that stores, picks, packs, and ships inventory on your behalf. See our What Is 3PL guide.
DSO (Days Sales Outstanding)
Average days to collect payment after a sale. Critical cash-flow metric for distributors extending Net 30 terms.
EDI (Electronic Data Interchange)
Standardized electronic documents between distributors and large retail or institutional buyers.
ERP (Enterprise Resource Planning)
Integrated software for finance, inventory, purchasing, and sales. See Best ERP for Distributors.
FOB (Free on Board)
Shipping term defining when title and freight responsibility transfer from seller to buyer.
MOQ (Minimum Order Quantity)
Smallest order a supplier will accept. See Minimum Order Quantity (MOQ) guide.
MRP (Material Requirements Planning)
Production planning focused on materials and BOMs. Compare ERP vs MRP for distributors.
SKU (Stock Keeping Unit)
Unique identifier for each product variant you stock and sell.
VMI (Vendor-Managed Inventory)
Supplier monitors your stock and replenishes based on agreed min/max levels.
WMS (Warehouse Management System)
Software for receiving, putaway, picking, and shipping in a warehouse. See Best WMS guide.
James Cole
James Cole has spent 15+ years in wholesale distribution and supply chain operations, helping B2B companies scale from startup to multi-warehouse operations.
Last updated July 7, 2026
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- What Is 3PL? How Distributors Evaluate Third-Party Logistics Partners
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- Minimum Order Quantity (MOQ): How Distributors Can Negotiate and Manage It
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- ERP vs MRP for Distribution Businesses
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- Best Warehouse Management Systems for Distributors
Compare top warehouse management systems for receiving, putaway, picking, packing, and outbound accuracy in distribution operations.
