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| 2D bar code |
Two-dimensional bar code based on a flat set of rows of encrypted data in the form of bars and spaces, normally in a rectangular or square pattern. |
| 3D bar code |
Three-dimensional bar code based on a physically embossed or stamped set of encrypted data interpreted by variations in height rather than contrast between spaces and bars (as used in 2D bar codes). Often used in environments where labels can not be easily attached to items. |
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ASN
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Advance Shipping Notification. An EDI transaction sent ahead of the shipment listing its contents and shipping information.
A message, usually sent through EDI, from a vendor to a customer at the time of the vendor shipment that notifies the customer of the order, item and quantity information. Some customers may refuse receipt or penalize the vendor if the ASN is not communicated at shipment time or within a specified time frame. |
| AS/RS |
(Automatic Storage and Retrieval System) Automated, robotic system for storing and retrieving items in a warehouse.
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Activity based costing (ABC)
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Costing method that breaks down overhead costs into specific activities
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Audit
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Verification of the accuracy of data
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| Aging |
The separation of invoices, orders, inventory and production lots into time buckets based on due dates, receipt dates, expiration dates, or other factors. Used to focus attention on past due and most urgent items. |
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| B |
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| Blind Receiving |
Receiving goods in a DC without any PO or ASN is termed as blind receiving. |
| Build to Order (BTO) Kit |
An item that consists of multiple components, but is not pre-assembled or stocked
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| Back flush |
Method for issuing (reducing on-hand quantities) materials to a manufacturing order. |
| Batch picking |
Order picking methods where orders are grouped into small batches, an order picker will pick all orders within the batch in one pass. In other words, warehousing process in which goods are selected by pickers in quantities to satisfy the demand for more than one order. Goods are first picked by SKU, and later sorted by order or delivery address |
| Back-Order |
Unfilled request for issue of warehouse stock |
| BOL, Bill of Lading |
Document by which a transportation line acknowledges receipt of freight and contracts for its movement |
| BOM, Bill of Material |
Lists materials (components or ingredients) required to produce an item. |
| Bar Code |
A series of vertical bars of varying widths that contains encoded information. Typically printed to a label. Used for computerized inventory control. |
| Bar Code Label Printing |
In WMS, the ability to print bar code labels to a standard or bar code printer. |
| Batch Terminal Communications |
The connection between the PC and Batch handheld for purposes of transferring data or WMS program setting. |
| Bulk Storage Area |
Main storage area for inventoried items in the warehouse |
| Bar Code Labels |
In WMS, labels that use bar code symbology to capture inventory information. Can be created within the WMS workstation application or a separate bar code application. |
| Backorder |
A current or past due customer order (or line item) that cannot be shipped due to lack of inventory availability. |
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| C |
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| Contract warehouse |
Business that handles shipping, receiving, and storage of products on a contract basis |
| Critical Stock |
Commodity that must be maintained in inventory, though little used, to respond to expressed need |
| Carrier |
The external commercial entity responsible for transporting a shipment. Carriers may specialize in small packages, LTL (less-than-truckload), full truckloads (TL), rail, air, or sea. |
| Cross Docking |
An efficient distribution approach in which merchandise is pre-packed by the store and moved directly from the receiving dock to the shipping dock. Eliminates the need to place inventory in storage. |
| CCD Scanner |
A nice compromise in price and performance between a pen and a laser, this Charged Coupled Device (CCD) scans up to 200 times per second and reads from as far as 4 inches from the bar code. Very durable. |
| Cycle Counts |
A way of physically counting/verifying inventory levels in sections of a store or DC, usually more efficiently than other methods. In the WMS workstation application, you are able to specify the frequency of item counting by entering a cycle period for the item. |
| Cycle Period |
The amount of time between a cycle count for an item. |
| Cubing |
The cubic size of the item may be created for the item’s units of measurement (i.e., each, box, and case) and stored in the item’s record (at the Item Data form). When prompted to perform a move, receipt, or put away, the system is able to determine space availability in a particular location. If a location has insufficient space to accommodate the material, the system directs the user to select another location. The user can also override and store the item in the location. |
| Customer |
A person or entity that buys goods or services from your operation. |
| Carousel |
A rotating or movable warehouse device used to store multiple, small parts for picking in a high usage volume environment. |
| Containerization |
The system and process of placing cargo material in a standard- size container, in which the contents are not rehandled as the container is moved between ship, rail, truck or other transportation modes. |
| Consolidation |
The combination of shipments from multiple points at an intermediate facility, reducing the number of individual shipments to end locations. |
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| D |
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| DC |
Distribution Center
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| Distribution Requirements Planning |
Determining the inventory level needed in warehouses to meet anticipated customer demand over time. It is used for inventory management and as a feed for MRP. |
| Data Synchronization |
The data transfer process between a handheld device and a desktop computer. |
| Directed Pick and Put Away |
WMS feature to directs the user to the desired location when picking inventory or putting away inventory. Used with the portable data collection terminal. |
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| Economic Order Quantity - (EOC) |
A level of quantity or inventory indicating that a re-order to replenish should be made in order to maintain or control a safe inventory. |
| Emergency Stock |
Quantity of a commodity that must be maintained on hand at all times to provide for initial response to an unplanned catastrophic event.
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| Expiration Date |
In the WMS, the product expiration date may be used to assign an expiration date to an inventoried item. Commonly used with perishable inventory items, medicines, etc. |
| European Article Number (EAN) |
A superset of the Universal Product Code that includes the base UPC code and two or three additional characters that indicate the country that issued the number (not necessarily the country of origin for that product). |
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| Forward Pick Location |
Generally, a “forward” location in the warehouse to which materials can be moved from bulk storage. Designated “forward pick locations” are important if you are implementing replenishment or location sequencing.
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| Fill rate |
Sales order processing measurement that quantifies the ability to fill orders.
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| FIFO - First-in-first-out. |
In warehousing describes the method of rotating inventory to used oldest product first
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| Flow Rack |
A warehouse storage device where items are stocked at the rear and a conveyor is used to moved the items to the front for picking.
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| Full Truckload (FTL) |
Shipments rated on the use of a truck’s entire capacity based on weight or volume. |
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| G |
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| GTIN (Global Trade Item Number) |
The new global term for the 14-digit numbering structure that encompasses UCC-12, EAN/UCC-8, EAN/UCC-13 & EAN/UCC-14. |
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| Hold (or Quarantine) Designation for a Location |
Used in the WMS workstation application; when a location is given a quarantine (or hold) designation, it cannot be used to store or move items. |
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| Invoice (Bill) |
List of charges or costs presented by a vendor to a purchaser, usually enumerating the items furnished, their unit and total costs
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| Inventory |
The aggregate of all commodities in stock at a given time
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| Inventory Turnover |
Number of times inventory turns during a one year period. |
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| Just-in-Time (JIT) |
A manufacturing and inventory management philosophy that seeks to effectively manage resources and improve organizational effectiveness by identifying and eliminating sources of waste (anything that does not add to the customer’s perception of value). Among other areas, it focuses on the reduction of lead times, small lot sizes, flexible production facilities and workforces, elimination of quality defects, and the reduction of inventory levels to as close to zero as possible. Inventory is seen in the JIT philosophy as not necessarily an asset, but as an unnecessary cost and potential liability that lengthens lead times, increases the chance for obsolescence and hides inefficient processes and systems. It also emphasizes group and partner involvement in design, manufacturing and logistics. |
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| Kitting |
The process of pulling a set of component items from stock to group them for production or for movement to another area. Kitting is usually done for a specific production or sales order.
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Key Performance Indicator (KPI)
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Indicators used to provide measurements of the defined priority and key success factors of a project or system.
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| Lot |
A production run or batch that can be isolated from other runs and identified with a specific set of material, production facility and process characteristics.
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| Lot Tracking |
The process of tracking a given material lot up (into upper level items and customer/interplant orders) or down (into the lower level lots it consumed when produced, or the lot received from a vendor). Physical and system controls are required to provide the true source and destination of a given lot in a product recall or similar situation.
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| License Plate Number (LPN) |
A document, tag, or label used to identify a unitized load.
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| Less Than Truckload (LTL) |
A small shipment that does not qualify for full truckload (FTL) rates based on weight or volume, and normally has a longer delivery time due to consolidation with other LTL shipments.
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| Location |
the place where the inventory is physically stored or staged.
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| Lead Time |
Time from date of inventory review or requisition date to delivery date, usually expressed as an average. |
| LIFO, Last-in-first-out |
Method for using the newest inventory first |
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| Locator system |
Inventory-tracking systems that allow you to assign locations to your inventory to facilitate greater tracking and the ability to store product randomly. Prior to locator systems, warehouses needed to store product in some logical manner in order to be able to find it (stored in item number sequence, by vendor, by product description, etc.) |
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| Min-max |
Inventory system in which a minimum quantity and maximum quantity are set for an item |
| Manufacturing resource planning |
Process for determining material, labor and machine requirements in a manufacturing environment |
| Middleware |
Connectivity software, enabling an enterprise-wide range of data sources to be integrated into the decision-making database of the common reference model, is a strong requirement for success. Interfaces to various ERP, MRP, databases and specialized software are required for these translators between IT applications. |
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| N |
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| Order Lead Time |
Time from a receipt of an order for a product through picking and delivery to a customer. |
| Order cycle |
Time between orders of a specific item
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| Parcel Manifest System |
Automated shipping system. |
| Put-Away |
In distribution, the movement of received goods to a storage area. It can involve intermediate staging. |
| Packing List |
Document that itemizes in detail the contents of a particular package or shipment. |
| Purchase order |
Document used to approve, track, and process purchased items. |
| Public warehouse |
Business that provides short or long-term storage to a variety of businesses, usually on a month-to-month basis |
| Pallet |
A temporary storage area that is usually portable; used for moving or storing inventory. |
| Paperless Picking and Receiving |
Receive new orders into inventory or pick existing orders electronically, without the use of a printed document. |
| Physical Inventory |
Inventories count of all items by location; usually performed with a portable data collection terminal. |
| Pick Sequence |
The location travel sequence when picking items. |
| Portable Data Collection Terminal (PDT) |
A portable device used to collect inventory data and perform inventory functions. Interfaces with the WMS through a separate Batch Portable or RF Server application. |
| Primary Location (for picking and put away) |
A location established as the prime location for an item. Useful in location sequencing for picking, put away, and replenishment.
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| Quality Assurance |
Program planned to provide that goods purchased may be inspected and/or tested so that compliance with specifications may be determined. |
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| Return Material Authorization (RMA) |
A document that governs the return of materials or merchandise, including quantity, amount, and timing of the return.
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| Random-Location Storage |
In warehouses, a storage technique in which received material is put away in any available space rather than a specific decided logical criteria. |
| Radio frequency (RF) (warehousing) |
It refers to the portable data collection devices that use radio frequency to transmit data to host system. |
| Reorder point |
Inventory level set to trigger reorder of a specific item. |
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Reorder Quantity
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Number of units, determined by logical factors, scheduled for reorder when the reorder point is reached.
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| Receiving Area |
Area in the warehouse where goods are received. |
| Replenishment |
Used with the portable data collection terminal for replenishing inventory. Directs you to move material from a bulk location to a forward pick location. |
| RF Server |
The RF server that interfaces between the WMS database and an RF portable; it must be opened as a separate application. |
| RF Terminal |
An RF enabled wireless portable data terminal that uses the WMS RF server application. |
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| SKU Stock Keeping Unit |
An individual color, flavor, size, or pack of a product that requires a separate ID number to distinguish it from other items (a measure of an item of merchandise for inventory management). In inventory control and identification systems, it represents the smallest unit for which sales and stock records are maintained. |
| Snappiness |
A term used to reference the speed of the scanner. Depending on the testing method employed, snappiness may be measured by reads per minute, trigger to beep time, or trigger to output time. Various factors can affect snappiness, including ease of use (aiming), decoding software, bar code quality, and interface speed. |
| Stock Out |
Stock-out condition existing when a supply requisition cannot be filled from stock. |
| Stock-out Rate |
-The number of stock-outs per hundred line items picked |
| Scanner |
An electronic device that is used to read and transmit the information found in a bar code. A scanner device can integrate with or be added onto your handheld device. Use it to read the tracking number into Package Track. |
| Staging Area |
Area in the warehouse from which goods are shipped. |
| Seasonality |
Patterns of temporary periodic increases or decreases in demand |
| Shelf Life |
Amount of time it takes for an item to expire |
| Safety Stock |
The amount of stock you want to keep on hand to meet additional sales or delays in receipt of goods |
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| Tier 1, 2 supplier |
A tier 1 supplier is the immediate or primary set of vendors directly used by a company, and tier 2 is a vendor to tier 1. In some industries the final customers or dominant chain partners are consolidating (reducing) their number of tier 1 suppliers, and requiring proof of the communications and fulfillment capabilities between tier 1 and tier 2.
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| Third party logistics provider (3PL) |
An outsourced provider that manages all or a significant part of an organization’s logistics requirements and performs transportation, locating and sometimes product consolidation activities.
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| Task interleaving |
Term used in describing a warehouse management systems to mix tasks to reduce travel time. Sending a forklift driver to put away a pallet on his way to his next pick is a task interleaving example. |
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| Unit of Measure (UOM) |
It describes how the quantity of an item is tracked in your inventory system. The most common unit of measure is “eaches,” which simply means that each individual item is considered one unit. An item that uses “cases” as the unit of measure would be tracked by the number of cases rather than by the actual piece quantity. Other examples of units of measure would include pallets, pounds, ounces, linear feet, square feet, cubic feet, gallons, thousands, hundreds, pairs, dozens.
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| Unit load |
Material handling term that describes any configuration of materials that allow it to be moved by material handling equipment as a single unit
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| Universal Product Code (UPC) |
A numeric code used to identify a specific product, normally composed of a six digit code that identifies the manufacturer, a six digit code used by the manufacturer to identify the product, and a two digit check code. |
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| Vendor |
One who supplies or sells goods |
| Vendor-managed inventory |
The process of a supplier managing the inventory levels and purchases of the materials he supplies. |
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| Wedge |
Refers to any device inserted between the keyboard and the terminal that translates digital signals into keyboard codes. In a keyboard wedge application, the data resulting from the scanning of a bar code symbol is treated by the PC or terminal as if it originated from the keyboard, while the keyboard itself remains fully functional. Because the terminal or PC cannot differentiate between bar coded data and actual keyboard data, a keyboard wedge interface allows bar code reading capability to be rapidly added to an existing computer without changing the application software. |
| WINS |
Warehouse Information Network Standard. Uniforms EDI standard used in the warehouse industry and compatible with UCS Communications Standard. |
| WMS |
Warehouse Management System Computer software designed specifically for managing the movement and storage of materials throughout the warehouse. It supports daily tasks performed within a warehouse or distribution center including picking, shipping, cycle counting, and stock movement. Most WMS system utilize radio frequency technology for remote data entry. |
| Wave picking |
Variation on zone picking where rather than orders moving from one zone to the next for picking, all zones are picked at the same time and the items are later sorted and consolidated into individual orders/shipments. |
| Warehouse |
A structure designated for storage of things. |
| Work In Process (WIP) |
Material that has been partially processed but not yet transformed into its final state and not normally usable as is. The status of WIP material is usually described by its current routing operation location. |
| Warehouse Zone |
A physically or logically segregated area within a warehouse defined by the type of material it contains (bulk or rack storage, hazardous material, etc.) or the division of equipment and personnel used to putaway, move and pick.
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Wireless device
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Any device that can communicate with other devices without being physically attached to them. Most wireless devices communicate through radio frequency.
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| Zone |
Location designation that represents a storage area. |
| Zone Picking |
Order picking method where a warehouse is divided into several pick zones, order pickers are assigned to a specific zone and only pick the items in that zone, orders are moved from one zone to the next (usually on conveyor systems) as they are picked (also known as “”pick-and-pass”").” |
| Zero Inventory |
A term initially used to represent the optimum stock level in a just-in-time system and the idea that inventory is a liability instead of an asset. |
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