Glossary
Plain-language definitions of the terms used in warehousing, stock control, order fulfilment and supply-chain operations. Browse by topic to see how terms relate, look one up from A to Z, or search by any name a term is known under.
Browse by topic
- Inventory and stock controlKnowing what you hold and where: SKUs, lots, stock takes, safety stock.23 terms
- Inbound: receiving and putawayFrom dock to shelf: receiving, putaway, slotting and cross-docking.6 terms
- Outbound: picking, packing and shippingFrom order to carrier: picking methods, packing, cut-off times, despatch.17 terms
- Warehouse automation (MHE)Machines that store, move and sort goods, and the technologies that guide the work.19 terms
- Systems and integrationWMS, OMS, WCS, WES, EDI and how warehouse software connects.10 terms
- Retail and supply-chain standardsGS1 identifiers, barcodes and the messages trading partners exchange.9 terms
- Metrics and KPIsThe numbers that show how stock and warehouse work are performing.5 terms
A to Z
A
ABC analysis
ABC analysis explained simply: ranking products by how much they matter and splitting them into A, B and C groups. How to use it, with an example.
AS/RS — automated storage and retrieval system
AS/RS explained simply: machines that put goods into storage and fetch them again by themselves, with nobody on board. When it pays off.
Automated guided vehicle — AGV
Automated guided vehicle explained simply: a driverless vehicle that carries goods along a set route. When it pays off, with an example.
Autonomous mobile robot — AMR
Autonomous mobile robot explained simply: a wheeled robot that finds its own way around people and obstacles. When it pays off, with an example.
B
Backorder
Backorder explained simply: an order for something out of stock, accepted now and sent when it's back. When it helps, when it hurts, with an example.
Batch number
Batch number explained simply: the code that tells one delivery of a product from another, so a problem touches only the boxes it should.
Batch picking
Batch picking explained simply: one picker collects the items for several orders in a single round, then sorts them. When it saves walking, with an example.
BPaaS — Business Process as a Service
BPaaS (Business Process as a Service) definition: cloud delivery of an entire business process, not just software.
C
Conveyor
Conveyor explained simply: a belt, roller track or chain that carries cartons, bins or pallets by itself. When it pays off, with an example.
Cross-docking
Cross-docking explained simply: goods arrive and leave again straight away, without being shelved. When it works, when it doesn't, with an example.
Cube storage — grid storage
Cube storage explained simply: bins stacked in a grid with robots on top that fetch them for a picker. When it pays off, with an example.
Cut-off time
Cut-off time explained simply: the time of day before which an order ships today. How to work it out from the courier's collection, with an example.
Cycle count — cycle counting
Cycle count explained simply: counting a few locations every day or week instead of everything once a year. A simple plan, with an example.
D
Days of inventory — stock cover
Days of inventory explained simply: how many days your stock would last at today's sales rate. Two versions, and a worked example.
Dead stock
Dead stock explained simply: items that haven't sold for a long time and probably won't. How to spot it and what to do with it, with an example.
DESADV — Despatch Advice
DESADV explained simply: the message a supplier sends ahead of a delivery listing what is on the truck, so the receiver can check goods against it.
Despatch — dispatch
Despatch explained simply: the last step, handing packed parcels to the carrier and recording that they have gone. Where errors creep in, with an example.
E
EDI — Electronic Data Interchange
EDI (Electronic Data Interchange) definition: structured B2B message exchange between trading partners.
EDIFACT — Electronic Data Interchange For Administration, Commerce and Transport
EDIFACT explained simply: the international format for business messages such as orders, despatch advice and invoices that computers exchange directly.
Expiry date
Expiry date explained simply: best before versus use by, what each means in a warehouse, and why the date decides what ships first.
F
FEFO — First Expired, First Out
FEFO explained simply: ship the stock that expires first, not the stock that arrived first. Less waste and a faster recall, with an example.
FIFO — First In, First Out
FIFO explained simply: your oldest stock goes out first. When the rule works, when it doesn't, and how it differs from FEFO. With an example.
G
GLN — Global Location Number
GLN explained simply: the 13-digit number that identifies a place or a company, such as a warehouse, store or dock door, in orders and shipping messages.
Golden zone
Golden zone definition: the easy-reach band of a rack, between waist and shoulder height, where the most frequently picked articles are stored.
Goods receipt — goods-in
Goods receipt explained simply: checking a delivery against the order and booking it into stock. What to check, and why to do it the same day.
Goods-to-person — G2P
Goods-to-person explained simply: the stock is brought to the picker at a station instead of the picker walking to it. When it pays off.
GS1-128
GS1-128 explained simply: one barcode on a carton or pallet that carries product number, batch, expiry date and more, so one scan records them all.
GTIN — Global Trade Item Number
GTIN explained simply: the number under a product's barcode that identifies it worldwide, why marketplaces ask for it and how it differs from a SKU.
H
HIBC — Health Industry Bar Code
HIBC explained simply: a barcode format used on medical supplies to carry the maker, product, lot and expiry date. What it is and where you meet it.
Horizontal carousel
Horizontal carousel explained simply: a low oval loop of bins turns until the one you need stops in front of you. When it pays off, with an example.
I
IMS — Inventory Management System
IMS (Inventory Management System) definition: software that tracks stock levels, movements and valuation. A WMS directs the work of moving that stock.
Inventory turnover
Inventory turnover explained simply: how many times a year you sell through your stock, how to work it out and what a low number tells you.
iPaaS — Integration Platform as a Service
iPaaS explained simply: an online service that connects your business apps so data moves between them by itself. With an example for small companies.
L
Lead time
Lead time explained simply: the time from placing a supplier order to having the goods ready to sell. Why to measure the real figure, with an example.
Lot number
Also called a batch number: the code that tells one delivery of a product from another. The short answer; the full explanation is under batch number.
O
OMS — Order Management System
OMS full form and meaning: OMS stands for Order Management System, software that decides which stock is promised to which order and from where it ships.
Order Orchestration
Order orchestration definition: the OMS logic that decides how, where, and when each order is fulfilled.
P
Pallet AS/RS — automated pallet storage
Pallet AS/RS explained simply: cranes in narrow aisles store and fetch pallets up to the roof without drivers. When it pays off, with an example.
Pick and pack
Pick and pack explained simply: collecting the items on an order from the shelves, then packing them with the right label. How to keep it accurate.
Pick-to-light
Pick-to-light explained simply: lights at each shelf location show the picker where to pick and how many. Where it pays off, with an example.
Put-to-light
Put-to-light explained simply: a light at each slot shows where an item goes when a batch is sorted into orders. When it pays off, with an example.
Putaway
Putaway explained simply: carrying goods from the dock to a shelf and recording exactly which shelf. Simple rules that work, with an example.
R
Reorder point — reorder level
Reorder point explained simply: the stock level at which you place the next order, so the delivery arrives before the shelf is empty. With a worked example.
Returns processing
Returns processing explained simply: logging a returned item, checking it and deciding what happens next. Why speed matters, with an example.
RFID — radio-frequency identification
RFID explained simply: a small tag answers a radio signal with its code, so goods can be read without seeing them. When it pays off, with an example.
S
Safety stock
Safety stock explained simply: the cushion of extra stock that covers a busy week or a late delivery. A simple way to size it, with a worked example.
Serial number
Serial number explained simply: the code that belongs to one single item, so you can trace that exact unit for a repair, warranty or recall.
Shuttle system
Shuttle system explained simply: small vehicles run on every level of a rack and bring bins or pallets to a lift. When it pays off, with an example.
SKU — Stock Keeping Unit
SKU explained simply: the code you give each product, size and colour so stock, prices and shelf locations can be tracked. With an example.
Slotting — warehouse slotting
Slotting explained simply: deciding where each product lives in the warehouse so that picking takes the least walking. A simple start, with an example.
Sorter — automated sortation system
Sorter explained simply: a machine that reads each parcel's label and sends it to the right lane by itself. When it pays off, with an example.
SSCC — Serial Shipping Container Code
SSCC explained simply: the unique 18-digit number on a pallet or carton label that lets the receiver scan it and know what is on it.
Stock accuracy — inventory record accuracy
Stock accuracy explained simply: how often the number in your system matches the number on the shelf. How to measure it, with a worked example.
Stock control
Stock control explained simply: knowing what you have, where it is and when to reorder, so you neither run out nor tie up cash. With an example.
Stock take
Stock take explained simply: counting what is physically on your shelves and comparing it with your records, how often to do it, with an example.
V
Vertical carousel
Vertical carousel explained simply: shelves on a loop inside a tall cabinet turn until the one you need reaches you. When it pays off, with an example.
Vertical lift module — VLM
Vertical lift module explained simply: a tall enclosed cabinet that brings the tray you need to an opening. When it pays off, with an example.
Voice picking
Voice picking explained simply: a headset tells the picker where to go and how many to take, hands and eyes stay free. When it pays off.
W
Warehouse execution system — WES
Warehouse execution system explained simply: software that decides minute by minute what each machine and station does next. When it pays off.
Wave picking
Wave picking explained simply: releasing orders to the shop floor in timed groups so each group is ready for the courier's collection. With an example.
WCS — Warehouse Control System
WCS meaning: a warehouse control system is the real-time software that runs conveyors, sorters and other warehouse automation on instructions from the WMS.
WMS — Warehouse Management System
WMS (Warehouse Management System) definition: software that manages inbound, storage, picking, packing, and shipping in a warehouse.
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Part one: Laying out a warehouse does not start with the racking
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