Annual Inventory – a physical count of all warehouse products conducted on a yearly basis.
Batch Picking – simultaneously selecting stock items to fill multiple orders. The orders are batched together to reduce the amount of journeys to the same locations within the warehouse.
Cross-dock – products that are not put away, or stored, in the warehouse. Instead stock is temporarily stored at the dock to be delivered or placed on another vehicle to be shipped.
Dispatching – carrier activities such as arranging for fuel, drivers, crews, equipment and terminal space.
EDI (Electronic Data Interchange) – exchanging information with the client via IT, including orders, invoices, shipping forms and other documents. EDI reduces costs, time delays and errors due to eliminating paper-based information.
Fulfilment – picking and processing orders for shipping from a distribution or warehouse.
Gross Weight – the total weight including the weight of the container and packaging (tare weight) and the weight of the goods (net weight).
Handling Costs – the costs of moving, transferring, preparing, and handling inventory.
In-house Damage – a product that is damaged whilst it’s stored in the warehouse (e.g. dropped product).
Just-in-Time (JIT) – an inventory control system that coordinates demand and supply so materials arrive just in time when they are needed in order to reduce storage and holding costs.
Kitting – assembling products or components into defined units in the warehouse.
Logistics – planning, implementing and controlling procedures to make processes efficient and effective, such as storage of goods, services and related information from the point of origin to the point of consumption to fulfil customer requirements.
Manifest – a document which includes descriptions of individual orders contained within a shipment.
Net Weight – the weight of the product excluding packing materials.
Order Picking – gathering a customer’s order from the items in storage.
Putaway – the time it takes to put stock in its final location from the time it was unloaded.
Quality Control – ensuring that goods and services or purchases meet the product or service specifications.
Replenishment – moving or resupplying inventory from an upstream storage location to a downstream facility in which picking is performed.
Slotting – determining the optimal placement and location for products in the warehouse judging by its dimensions and how often it is picked.
Unplanned Order – orders that do not fit into the volumes determined by the plans developed from the forecasts.
Variable Cost – a cost that fluctuates with the volume or activity level of the business, i.e. how much the product is being used or produced.
Warehouse Management System (WMS) – a software programme that determines putaway, replenishment and picking in order to manage the movement and storage of product in the warehouse.
Zone Picking – dividing a picking list by areas (zones) within a warehouse to increase efficiency and rapid order picking.