Warehouse and Material Handling Glossary
Supply Chain Terms
A professional organization focused on supply chain management and operations. APICS offers certifications, training, and resources to help professionals and organizations improve their supply chain processes and performance.
A phenomenon in supply chains where small shifts at the retail level cause progressively larger fluctuations in demand at the wholesale, distributor, manufacturer and raw material supplier levels. This occurs when retailers adjust their orders from wholesalers based on slight variations in actual or anticipated demand for a product.
The process of synchronizing supply chain activities among different parties, including manufacturers, suppliers, and retailers, to improve inventory management, enhance forecast accuracy and fulfill consumer demand.
Measures how long a company typically holds inventory before selling it.
Measures the average number of days a company takes to collect payment after a sale on credit.
The flow of activities required to satisfy customer demand.
The process of predicting, planning and controlling product and service demand.
The process of forecasting customer demand to ensure the right products are available at the right time.
Inventory levels maintained at various stages or echelons in the supply chain.
The optimal order quantity a company should purchase to minimize the total costs of inventory, including ordering costs (e.g., administrative costs) and holding costs (e.g., storage and depreciation).
The percentage of customer orders that are successfully fulfilled on the first shipment, without backorders or delays. It measures the supply chain’s ability to meet customer demand and is commonly used as a KPI for order fulfillment efficiency.
A metric that evaluates how closely forecasted demand aligns with actual demand over a specific period. It is typically expressed as a percentage and helps companies adjust their demand planning processes.
A third-party company or individual that organizes and facilitates the transportation of goods on behalf of shippers, including handling customs clearance, shipping documentation, and multimodal transport arrangements.
The worldwide network of suppliers, manufacturers, warehouses, distribution centers, and retailers involved in the production and distribution of goods.
The management of goods and materials arriving at a business from suppliers.
Using two or more different modes of transportation in moving goods from origin to destination.
Inventory strategy where goods are produced or acquired only as needed, minimizing excess stock.
The time between placing an order and receiving the goods.
Logistics is the process of managing how resources are acquired, stored, and transported to where they are needed.
Part of the supply chain management that plans, implements, and controls the efficient flow and storage of goods, services and relevant information.
The business practice of contracting third-party suppliers or service providers to perform specific tasks, functions, or processes that were traditionally handled internally.
This KPI evaluates the effectiveness of supply chain operations in delivering orders accurately and efficiently, making it a critical supply chain performance metric.
The process of securing products or services goods and services to support a company’s daily operations.
The process of managing the return of goods from the end customer, including recycling or refurbishing.
The process of identifying, managing and eliminating potential hazards that can be a threat to an organization.
The process of integrating and aligning demand and supply planning across the organization.
Service level refers to the probability or percentage that demand will be met without stockouts during a specific period, typically measured during lead time. It indicates how well a company can fulfill customer orders from available inventory.
A data-driven methodology and set of tools aimed at process improvement by identifying and eliminating defects and reducing variability in processes. It focuses on achieving near-perfect quality through statistical analysis, following a structured approach like DMAIC (Define, Measure, Analyze, Improve, Control)
The process of identifying, evaluating and engaging suppliers of goods and services.
A procurement process that continuously improves and re-evaluates the purchasing activities of a company.
The systematic approach to assessing suppliers’ contributions and developing strategies to improve their performance.
A Supply Chain is the network of organizations, people, activities, information, and resources involved in producing and delivering a product or service from the supplier to the end customer. It includes everything from sourcing raw materials, manufacturing goods, and managing inventory, to transporting and distributing the final product to consumers.
The process of managing the flow of goods, information, and finances from supplier to customer.
The process of designing and optimizing the physical and informational network that connects suppliers, manufacturers, warehouses, and customers.
A framework for evaluating and improving supply chain performance.
The ability of a supply chain to quickly adapt to disruptions by having flexible backup plans and forecasting in place, covering everything from sourcing materials to logistics and the final delivery of services and products.
Sustainability is all practices that reduce environmental impact and improve the social and economic performance of the supply chain.
The comprehensive cost of acquiring, operating, and maintaining an asset throughout its entire lifecycle. TCO includes not only the purchase price but also associated expenses such as installation, operation, maintenance, and disposal.
The complete time taken from the initiation of an order (e.g., customer placing the order or starting production) to the delivery of the final product to the customer. It includes processing, production, shipping, and handling times.
A management philosophy focused on embedding quality in every aspect of an organization through continuous improvement, customer satisfaction, and team involvement. TQM involves systematic methods for quality assurance and control.
The series of activities that add value to a product from its initial conception to its final delivery to the customer.
A supply chain practice where the supplier monitors, replenishes, and manages inventory levels for the customer. This system aims to improve inventory efficiency and reduce stockouts or overstock situations.
The financial metric representing the difference between a company’s current assets (e.g., cash, accounts receivable, inventory) and its current liabilities (e.g., accounts payable, short-term debts). It measures a company’s short-term liquidity and operational efficiency.
The percentage of products manufactured correctly and meeting specifications on the first attempt without requiring rework. It reflects production efficiency and quality control.
Warehouse & Supply Chain Formulas
A formula used to determine the Days Inventory Outstanding (DIO).
Formula:
![\[ \text{DIO} = \frac{\text{Average Inventory}}{\text{COGS}} \times 365 \]](https://modula.us/wp-content/ql-cache/quicklatex.com-aab768fff0b364c1b551dcfb4cc72557_l3.png "Rendered by QuickLaTeX.com")
Where:
- Average Inventory: The average value of the inventory held by the company during the period, often calculated as the sum of the beginning and ending inventory divided by 2.
- COGS (Cost of Goods Sold): The total direct cost of producing the goods that were sold during the period.
A formula used to determine the Days Sales Outstanding (DSO).
Formula:
![\[ \text{DSO} = \frac{\text{Accounts Receivable}}{\text{Total Credit Sales}} \times 365 \]](https://modula.us/wp-content/ql-cache/quicklatex.com-2b2ee78add205e217779a1091ee9f578_l3.png "Rendered by QuickLaTeX.com")
Where:
- Accounts Receivable: The outstanding payments owed by customers for sales made on credit.
- Total Credit Sales: The total amount of sales made on credit during the specified period (usually one year).
A formula used to determine the optimal order quantity that minimizes total inventory costs, including ordering and holding costs.
Formula:
![\[EOQ = \sqrt{\frac{2DS}{H}}\]](https://modula.us/wp-content/ql-cache/quicklatex.com-be5e4c627533bed3e09439c425e9fc9c_l3.png "Rendered by QuickLaTeX.com")
Where:
: Demand rate (units per period)
: Order cost per order
: Holding cost per unit per period
A formula used to determine the Fill Rate.
Formula:
![\[ \text{Fill Rate} = \frac{\text{Total Orders Shipped Complete}}{\text{Total Orders}} \times 100\% \]](https://modula.us/wp-content/ql-cache/quicklatex.com-dd72f6a7c3020f0610e33b07f68efeab_l3.png "Rendered by QuickLaTeX.com")
Where:
- Total Orders Shipped Complete: The total number of orders that were shipped complete, meaning all items in the order were delivered without any missing.
- Total Orders: The total number of orders placed during the period.
A formula used to determine the Gross Margin.
Formula:
![\[ \text{Gross Margin} = \frac{\text{Revenue} - \text{COGS}}{\text{Revenue}} \times 100\% \]](https://modula.us/wp-content/ql-cache/quicklatex.com-56aad338c0458b12782e31c82816ea60_l3.png "Rendered by QuickLaTeX.com")
Where:
- Revenue: The total income from sales or services provided by the company.
- COGS (Cost of Goods Sold): The direct costs associated with producing the goods or services sold by the company, including labor, raw materials, and overhead.
A formula used to determine the Inventory Turnover.
Formula:
![\[ \text{Inventory Turnover} = \frac{\text{COGS}}{\text{Average Inventory}} \]](https://modula.us/wp-content/ql-cache/quicklatex.com-e06355f45d5b00b811307a38487d5ec1_l3.png "Rendered by QuickLaTeX.com")
Where:
- COGS(Cost of Goods Sold): The total cost of goods sold during the period, reflecting how much it cost the company to produce the goods sold.
- Average Inventory: The average amount of inventory held by the company during a specific period (often the year)
A formula used to determine the Perfect Order Rate.
Formula:
![\[ \text{Perfect Order Rate} = \frac{\text{Total Perfect Orders}}{\text{Total Orders}} \times 100\% \]](https://modula.us/wp-content/ql-cache/quicklatex.com-f2419936980a865813e57bafe0e74034_l3.png "Rendered by QuickLaTeX.com")
Where:
- Perfect Order: typically defined as one that is delivered on time, complete, and undamaged.
- Total Orders: The total number of orders placed within the period./li>
A formula used to determine the Reorder Point (ROP).
Formula:
![\[ ROP = d \times L + SS \]](https://modula.us/wp-content/ql-cache/quicklatex.com-85d3fda11fb9b5a9a3f9ad174a35d2b5_l3.png "Rendered by QuickLaTeX.com")
Where:
: Average demand per period
: Lead time
: Safety stock
A formula used to determine Safety Stock
Formula:
![\[ SS = Z \times \sigma \times \sqrt{L} \]](https://modula.us/wp-content/ql-cache/quicklatex.com-42b9eaa600aae2b15a2dd8cfd996df73_l3.png "Rendered by QuickLaTeX.com")
Where:
- Z: Z-score (based on desired service level)
- σ – sigma: Standard deviation of demand
- L: Lead time
A formula used to determine the Total Cost of Ownership (TCO).
Formula:
![\[ TCO = \text{Purchase Price} + \sum (\text{Operating Costs} + \text{Maintenance Costs}) \]](https://modula.us/wp-content/ql-cache/quicklatex.com-82fbb9b2991182eddb46b6efc856234e_l3.png "Rendered by QuickLaTeX.com")
Where:
-
- Purchase Price: The upfront cost of acquiring the asset.
- Operating Costs: The ongoing costs required to run the asset (such as energy, consumables, and labor).
- Maintenance Costs: The costs related to maintaining the asset, which can include repairs, replacements, and preventative maintenance over its lifetime.
- ∑: The summation symbol indicating that the operating and maintenance costs are accumulated over a specified period (e.g., years of operation)
Warehouse Equipment Terms
An automated dispensing system where products are stored in vertical columns and dispensed into a conveyor or tote below.
Shelving units that can be adjusted in height to accommodate different sizes of stored items.
A robot with rotating joints that can move in multiple planes, often used for tasks requiring high flexibility and precision.
A mobile robot used to transport materials around a warehouse, factory, or other production facility. AGVs follow a predetermined path using navigation systems like magnetic strips, laser sensors, or cameras.
Automated Picking Systems are solutions used to automate the process of selecting and retrieving items for order fulfillment. These systems use a combination of robotics, lights, sensors, and software to identify and pick products.
Automated Storage and Retrieval Systems (AS/RS) are Computer-controlled systems used to efficiently store, retrieve, and manage materials or products. These systems are designed to reduce the need for manual labor, increase storage density, and improve accuracy and speed in handling goods. AS/RS systems are typically used in environments with high throughput, where efficient space utilization and precise inventory management are critical.
An Autonomous Mobile Robot (AMR) is a robot that utilizes sensors, cameras and onboard processors to navigate a warehouse autonomously without fixed paths.
Belt Conveyors are used to transport goods and materials over short or long distances within a warehouse, factory, or other industrial facility. They consist of a continuous belt made of rubber, fabric, or metal, which is powered by motors to move the items from one point to another.
A container that stores small parts or components, often used in shelving and bin storage systems.
A type of racking system designed to store long, bulky items, such as pipes, lumber and other building materials.
An automated system where storage bins or shelves rotate around a track to bring items to a picking station.
A type of shelving system that uses a gravity-fed roller system to move cartons forward for easy access.
An inclined or vertical channel used to transport materials from a higher to lower level.
A specialized forklift equipped with hydraulic clamps instead of forks to manage large or irregularly shaped items.
Collaborative Robot (Cobot) is a robot designed to work alongside human workers to improve productivity and employee safety.
A robot integrated with conveyor systems to move products along production lines or through warehouses.
A mechanical handling system that moves goods and materials within a warehouse.
A machine designed to lift and move heavy materials vertically or horizontally using a boom, hoist, and either wire ropes or chains with sheaves. It can lift and shift heavy loads within the reach of its boom.
Large, heavy-duty containers used for storing and transporting goods.
An automated sorter that utilizes small, individual belts to move products to their designated location.
Equipment used to measure the dimensions and weight of products for storage or shipping.
A small platform on wheels used for transporting heavy or bulky items, such as equipment or furniture.
Pull-out storage compartments used for organizing and accessing small parts or tools.
An unmanned aerial vehicle (UAV) used for inventory management, stock taking, and surveillance within warehouses.
Tools and machines designed specifically for lifting, moving and storing drums or barrels.
A powered version of the manual pallet jack, used for lifting and moving pallets with less physical effort.
A wearable, external device or structure designed to support and enhance the physical capabilities of the user. Exoskeletons are often used to reduce the strain on workers by assisting with lifting, carrying, or repetitive motions, improving safety.
A motorized vehicle that lifts and transports goods on pallets.
An automated guided forklift that can lift, transport, and stack pallets or other materials without human intervention. They are designed to perform the same tasks as traditional forklifts but operate independently.
A system where robots bring items to human workers for picking, packing or sorting.
A conveyor system that uses gravity to move materials or products down a sloped path.
A manual tool used to move heavy or bulky items by leveraging a small platform at the base with two wheels. The operator tilts the load backward onto the wheels, allowing them to easily push or pull the items.
:Storage systems that maximize space utilization by minimizing the footprint required for storing items. This is achieved by compacting storage units, reducing aisle space, and using vertical or movable storage systems. Common high-density storage solutions include vertical lift modules (VLMs), mobile racking, and automated storage and retrieval systems (AS/RS).
A hoist is a machine that uses fixed and movable pulleys, along with a cable or chain, to transport heavy loads.
Horizontal Carousels are automated storage systems that consist of a series of bins or shelves mounted on a track, rotating horizontally to bring the desired item directly to the operator. Horizontal carousels are ideal for environments with limited vertical space and for small to medium-sized goods in high-density storage applications.
A combination of different types of robots, such as an AGV or articulated arm, used for complex warehouse tasks.
A table that can be raised or lowered using a hydraulic mechanism, used for positioning heavy items at a convenient height.
A conveyor with an inclined surface used for moving products between different levels.
A robot designed for heavy-duty tasks such as lifting, moving, or assembling products in industrial settings.
A type of crane with a horizontal arm, or jib, that supports a movable hoist. It is often used for localized lifting tasks.
Automated vehicles that use lasers for navigation within a warehouse.
A forklift-like vehicle designed for lifting and transporting materials.
A tool or material, such as straps, bands, or corner protectors, used to secure and stabilize loads during transport or storage, preventing movement or damage.
Secure storage units used for personal items or valuable tools.
An intermediate floor within a warehouse used to maximize storage capacity.
A robot that combines mobility, think AGV or AMR, with manipulation capabilities for tasks like picking and placing.
Autonomous robots designed to navigate the warehouse and pick items directly from shelves or bins, often working alongside human pickers or in fully automated systems.
Robots that can move around the warehouse to transport goods, typically guided by sensors or programmed paths.
Shelving units mounted on tracks that can be moved to create temporary aisles, maximizing storage space.
Storage systems that can be customized and expanded with interchangeable components
A Multi-Robot System (MRS) is a coordinated group of robots working together to perform tasks that would be difficult or impossible for a single robot to handle efficiently. These systems can include various types of robots, such as Autonomous Mobile Robots (AMRs), drones, or robotic arms.
A manual tool used to lift and move pallets over short distances. Pallet jacks are commonly used in warehouses for quick and easy transport of palletized goods, often featuring wheels and a hydraulic lift mechanism.
A storage system specifically designed to hold and organize pallets in a warehouse. Pallet racks maximize vertical storage space and can accommodate various configurations, such as selective, drive-in, or push-back racking systems, depending on storage needs.
An automated storage and retrieval system that uses motorized shuttles to move pallets within a racking system. This system improves efficiency by reducing the need for forklifts, making it ideal for high-density storage and faster access to stored pallets.
A Palletizing Robot is robot specifically designed to stack and organize products onto pallets.
Pick and Place Robot is a robot that picks items from one location and places them in another space.
Pick-by-Light is a system that uses light indicators to direct pickers to the correct product locations and quantities.
Pick-to-Voice is a voice-directed order picking system where workers receive picking instructions through headsets.
Sturdy, reusable plastic containers designed for the storage and transport of small parts, components, or loose items within a warehouse. Plastic totes are commonly used in automated systems and can be stackable, nestable, or equipped with lids to protect contents, making them ideal for organization and efficient handling.
A flat-surfaced cart with wheels used for transporting heavy or bulky items.
Put-to-Light is an order fulfillment system where light indicators guide workers to the correct locations for placing items.
Netting installed on racking systems to prevent items from falling off shelves.
Radio Frequency Identification (RFID) is a wireless system that consists of two parts — tags and readers. The reader uses one or more antennas to send out radio waves and receive signals from the RFID tag.
A type of forklift designed for narrow aisles and high stacking.
Reel Storage Rack is a racking systems designed to store and dispense reels of wire, cable, or other materials.
A conveyor system consisting of a series of rollers that transport goods along a path. The rollers can move items by gravity—on an incline—or by manual or powered pushing.
A lifting device that raises and lowers a platform using a crisscross (scissor-like) mechanism. Scissor lifts are often used for accessing high shelves, maintenance tasks, or handling heavy loads at elevated heights in a warehouse.
Dividers that organize items on a shelf, preventing them from shifting and mixing.
A storage solution made up of multiple horizontal shelves designed to hold and organize various types of inventory. Shelving is typically used for smaller items, individual cartons, or products that need to be easily accessible for picking and replenishment. Shelving units can vary in size and material, from light-duty wire racks to heavy-duty steel shelves.
A plastic film that shrinks tightly around loads when heat is applied. It is used to secure and protect items, whether palletized or boxed, during storage and transport.
An automated storage and retrieval system in which small robotic shuttles move along tracks within racking systems to retrieve and store items. Shuttle systems enhance warehouse efficiency by reducing manual handling and are ideal for high-density storage environments, as they allow rapid access to products and optimize space utilization.
An inclined surface designed to facilitate the movement of products between different levels of a warehouse or from a higher point to a sorting area.
Shelving units equipped with shelves that slide outward, providing easier access to stored items.
An automated system used in warehousing and distribution centers to classify and direct items to their designated locations.
A robotic system designed to sort goods based on predefined criteria, such as size, weight, or destination. These robots improve efficiency in order fulfillment and inventory management.
A machine used for lifting, stacking, and arranging items, typically pallets, in a warehouse. Stackers are essential for maximizing vertical storage and reducing manual labor.
Modular racks that can be stacked on top of each other to maximize vertical storage space and enhance warehouse organization.
An automated robot that stacks products, boxes, or pallets. Stacking robots help streamline warehouse operations by reducing manual stacking labor and improving accuracy.
Enclosed storage units with doors, used to secure valuable or sensitive items. Storage cabinets are commonly found in both warehouses and offices for organized and secure storage.
A designated area within a warehouse for storing tools, equipment, and sometimes maintenance supplies. Storage cribs help maintain organization and ensure quick access to necessary items.
A secure, fenced or caged area within a warehouse used to store high-value or sensitive items. Storage enclosures are commonly used to limit access and provide extra protection for valuable inventory or hazardous materials.
A flexible and stretchable plastic film used to wrap around goods, providing stability, protection, and consolidation during transport or storage. It does not require heat, making it a versatile solution for securing both palletized and non-palletized loads.
The remote control of robots or machinery, allowing human operators to control robotic movements and actions from a distance. Teleoperation is commonly used in hazardous environments where direct human presence is impractical or unsafe.
A storage unit, either portable or stationary, with multiple drawers used for organizing and storing tools of various sizes.
A secure storage area specifically designated for tools, typically managed to ensure proper inventory control. Tool cribs are often used in manufacturing environments where monitoring tool usage and availability is critical to maintaining efficient operations.
A portable storage container designed for organizing, storing, and transporting tools. Toolboxes are typically used for on-site work where easy mobility and access to essential tools are necessary.
A durable container used for storing and transporting materials, often utilized in automated systems to move items between different parts of a warehouse.
A motorized vehicle designed to pull trailers or carts loaded with materials, often used in warehouses and manufacturing facilities to transport heavy loads efficiently.
A vertical carousel is an Automated storage systems that rotate bins or shelves vertically to deliver stored items to the warehouse operator at an ergonomic height.
a Vertical Lift Module is an advanced automated storage and retrieval system that maximizes vertical space by using available ceiling height, occupying minimal floor area. VLMs are ideal for efficiently storing and retrieving a wide range of items while optimizing the use of warehouse space.
A rotating automated storage system that moves shelves vertically to deliver items to a fixed retrieval point. Vertical storage carousels are ideal for storing and accessing lightweight items quickly, optimizing space, and improving ergonomics for warehouse operators.
A robot equipped with advanced vision systems that allow it to identify, navigate, and interact with objects within its environment. Vision-guided robots are used in applications requiring precision, such as picking, sorting, or assembling products.
Warehouse Robotics are machines that conduct different warehouse tasks, such as picking, packing and transportation.
Wearable Technology are electronic devices worn by human workers that can interact with robots to enhance productivity and safety, such as smart glasses or wearable scanners.
Shelving units made of metal wire, allowing for ventilation and visibility of stored items.
Sturdy tables with storage options, used as a workspace and for organizing tools and equipment.
A portable ramp used for loading and unloading materials from trucks or trailers.
Warehouse Operations Terms
A method of categorizing inventory into three groups, usually labeled as A, B and C, based on their importance and value. Group A contains the most valuable and expensive goods that require strict monitoring. Group B includes items of moderate importance with less stringent controls. Group C consists of the least valuable items.
A document that offers thorough details about an upcoming delivery, including information about the contents and expected arrival time.
The process of evaluating data and creating a projected schedule for an organization.
The process of assigning available inventory to specific tasks or customer orders.
The process of leveraging technology to improve productivity and safety, simplify labor-intensive tasks and optimize warehouse operations.
An order that is temporarily out of stock.
The percentage of orders that can’t be fulfilled at the time of order and are delayed until stock is available.
A barcode is a machine-readable code in the form of numbers and a pattern of parallel lines. Each unique combination of lines corresponds to specific data, such as a product number, serial number, or location identifier. Barcodes are used to quickly and accurately identify, track, and manage items.
Batch picking is a picking strategy where multiple orders are selected in a single pass to improve efficiency.
The smallest storage space in a warehouse where you can store goods.
The process of using robots to select items from bins, often employing vision systems to identify and grasp objects.
The process of storing, handling and transporting large quantities of loose materials such as grains, minerals, or chemicals.
The storage of goods in large quantities, typically in an undivided area of a warehouse. This method is generally used for high-volume, low-variety items
The process of matching available resources with the demands of consumer needs.
A company that transports goods from the warehouse to the customer.
The total cost of holding inventory, including storage, insurance and opportunity costs.
Cluster picking is a warehouse picking strategy in which a single picker collects items for multiple orders simultaneously using a multi-compartment cart or trolley.
A facility where products from multiple suppliers are combined into larger shipments.
The process of using standard-sized containers to transport goods, facilitating efficient loading, unloading, and transfer between different modes of transportation.
The process of refilling inventory to consistently keep up with demand.
The direct costs of producing goods sold by a company, including the cost of materials and labor.
A method that allows products to move quickly without long-term storage in a facility.
A periodic inventory counting method that audits a subset of inventory.
The portion of inventory available to meet typical demand during a given period.
Inventory items that remain unsold or unused for a long period of time. Deadstock can occur due to overproduction, changes in market trends, poor product reception, or incorrect forecasting.
The process of predicting future customer demand to optimize inventory levels.
The process of transporting received goods directly from the dock to storage locations.
An inventory management principle where the goods first received are the first to be sold or used. This is particularly important for perishable items to avoid spoilage.
A type of warehouse in which orders are processed and shipped directly to customers.
An order picking strategy where products are brought to the picker, reducing the time and effort spent walking through the warehouse.
A measure of how closely inventory records align with the actual physical stock.
The process of managing inventory levels to ensure adequate supply without overstocking.
Inventory Management System (WMS) stands for the Software and processes that monitor inventory levels, orders, sales and deliveries. It is used to manage the flow of goods from manufacturers to warehouses and from these facilities to point of sale.
Inventory Optimization is the process of balancing inventory levels to meet customer demand while minimizing costs.
How often a business sells and replaces its goods within a specific timeframe.
An inventory strategy in which warehouse operators receive goods only as they are needed in the production process.
Key Performance Indicators (KPIs) are essentials metrics to measure the performance of different aspects of supply chain operations.
Kitting is the process of packing separate yet related items as one unit, which is then processed as a single SKU.
The process of tagging items with barcodes or RFID tags for identification and tracking.
An inventory management method where the most recently added stock is used or sold first.
The time from placing an order to receiving the goods.
The number of individual product lines or SKUs picked within an hour.
The process of tracking and managing inventory based on production lots or batches.
An inventory management process that monitors groups of inventory with the same production or expiration date.
Material Handling Equipment (MHE) are the tools and machines used in warehouses to handle goods and materials, such as forklifts, conveyors, pallet jacks, and automated robotic systems.
The measure of how accurately customer orders are fulfilled, including the correct items and quantities.
Order Consolidation is the process of combining items from multiple orders into a single shipment.
The average time between the placement of one order and the placement of the next order.
Order Fulfillment Process is the process of receiving products, then processing and delivering orders to customers.
The products in an order, recognized by warehouses as each individual SKU or universal product code (UPC) number.
Order picking is the process of pulling items from inventory to fulfill customer orders. It is one of the most critical tasks in warehouse operations, affecting both customer satisfaction and operational efficiency.
The steps involved in receiving, picking, packing, and shipping customer orders.
The process of monitoring the status of an order from placement to delivery.
A detailed document included in a shipment that lists all the items, their quantities, and any other relevant information.
A document included with a shipment that lists the items included in the order.
A system that continuously updates inventory records based on real-time transactions.
A list generated by the WMS that specifies items to be picked for an order.
The measure of the number of items picked per hour by a worker.
The process of picking products from inventory and packing them for shipment.
The time it takes to get an order ready for shipment after receiving it.
The process of moving goods from the receiving dock and placing them into the appropriate storage area within a warehouse.
The use of radio waves for communication between devices, often used for real-time data collection in warehouses.
The level of inventory which triggers an action to replenish a particular item. It is primarily used in inventory management for reordering components.
The process of refilling goods to conserve desired levels of stock.
A process for managing the return of goods from customers.
Safety Stock is the extra inventory held in the warehouse to guard against stockouts typically caused by fluctuations in demand or supply delays.
The process of tracking individual items using unique serial numbers.
The length of time a product can be stored before it becomes unsuitable for use or sale. This is especially relevant for perishable goods.
A label affixed to a package indicating the delivery address and tracking information.
A document that outlines the products transported in a container or cargo ship.
Single order picking is a strategy where a warehouse employee manually picks all the items for one specific order, before moving on to the next order. This picking strategy can be time-consuming if orders are spread across a large warehouse.
Slotting is the process of organizing inventory within a warehouse to optimize storage and retrieval.
A designated area in a warehouse where goods are temporarily stored before being loaded onto outbound transportation or after being received.
A unique identifier for each specific product or item in inventory management. It is used to track and manage stock, distinguishing between variations such as size, color, or model within a product category.
A situation where an item is out of stock and unavailable for order fulfillment.
A unique identifier used to track a shipment’s progress and delivery status.
A metric used in warehousing, manufacturing, and logistics to measure the number of items or units processed, handled, or produced by an employee, machine, or system in one hour.
Warehouse Management System (WMS) is a solution that supports and optimizes warehouse functionality and distribution center management through automation and data analytics.
Wave picking is an order fulfillment strategy that refers to picking items for multiple orders in a single trip, streamlining the process of collecting several orders at once.
Zone picking is a method in which order pickers are assigned to specific zones in a warehouse.
Warehouse Software Terms
Software platform to manage interactions and relationships with customers, particularly focusing on sales, service, and customer retention. A CRM system helps companies track leads, manage customer data, streamline communication, and provide solutions based on client needs
The electronic transfer of business documents, such as purchase orders, invoices, and shipping notices, between companies using a standardized electronic format.
Software used by organizations to manage and integrate key business processes across various departments, including finance, supply chain, manufacturing, sales, human resources, and more
Software used to manage and optimize workforce productivity within a warehouse.
A system used to plan and manage the materials, components, and resources required to manufacture a product. It operates based on the production schedule, calculating what is needed and when. MRP involves three main steps: identifying available inventory, determining additional material needs, and scheduling production or procurement accordingly.
Software that manages order processing from order entry to fulfillment.
Software used to coordinate and manage multiple robots within a warehouse.
Software that facilitates the planning, execution, and optimization of the physical movement of goods, both inbound and outbound, ensuring that shipments are compliant, cost-effective, and timely.
A type of software that integrates with a WMS to streamline inventory management, enhance tracking capabilities and optimize warehouse operations.
Software that controls and manages the operation of automated equipment and systems within a warehouse.
A software application that coordinates different automated tasks in a warehouse or distribution center, such as sorting items and scheduling equipment maintenance. It provides operations with real-time insights into activities and resources.
Warehouse Management System (WMS) is a software that manages and optimizes all aspects of warehouse operations, including inventory control, order fulfillment, and labor management.
