Imagine trying to find a single item in your kitchen without some degree of order. Chances are you would somehow manage to complete your tasks for a limited time and then succumb to chaos. When you create order, you will know where the cutlery, spices, dishesand glasses are and will no longer have trouble finding or “picking” them when you put them in their designated places. While you can manage your kitchen stock in your head, large warehouses with thousands of items are managed by powerful and complex systems that are often integrated with the ERP systems that the company uses to manage its operations and track resources.
In day-to-day warehouse operations, warehouse management allows us to configure, track and enforce principles and processes that are central to uninterrupted operations. In this article, I will explain some of the most common terms and acronyms you may come across when starting out with Warehouse Management.
Acronyms
ASN (Advanced Shipping Notice)
ASN is a document that gives detailed information about upcoming delivery. It usually includes description for the items, type of packaging, carrier information, and expected arrival time.
BOL (Bill Of Lading)
BOL is a document between the shipper and the carrier that contains type, quantity, and destination of the goods being shipped. It also acts as a receipt for the goods on delivery.
BOM (Bill Of Materials)
BOM is a list of raw materials, components, and quantities needed to manufacture a product.
COGS (Cost Of Goods Sold)
COGS refers to the the direct costs of producing the goods sold by a company.
DTS (Direct To Store)
DTS in B2B model, refers to the process where the goods are distributed directly to retail stores instead of distribution into the distribution network
FIFO (First In First Out)
FIFO is an inventory valuation method where it is assumed that the goods that are produced or acquired first are to be sold first. In short, items that enter the inventory first, leave the inventory first.
LIFO (Last In First Out)
LIFO is an inventory valuation method where it is assumed that the goods that are produced or acquired last are to be sold first. In short, items that enter the inventory last, leave the inventory first.
LP (License Plate)
LP is a form of identification to mark a grouping of products or items in the warehouse. All items that are grouped are tracked under single identifier.
LTL (Less Than Truckload)
LTL refers to a truckload shipping method that is larger than a parcel but small enough that it doesn’t require FTL or Full truckload.
MHE (Material Handling Equipment)
MHE is the equipment used for moving, storing, and handling goods within a warehouse such as forklifts or conveyors.
RTW (Release To Warehouse)
RTW is one of core processes in warehouse management that creates work as an output
SKU (Stock Keeping Unit)
SKU is s a unique identifier, usually a number that is assigned for each distinct product or item helping to track stock levels. It can include information about other attributes such as type, color, size, packaging, or material.
WMA (Warehouse Mobile Application)
WMA is an application usually installed and run on handheld scanning devices to be used in a warehouse.
WMS (Warehouse Management System)
WMS is a system used for managing warehouse processes
Terms
Waves
Waves are a collection of order lines released to the warehouse at the same time for processing.
Loads
Loads are physical shipping containers that you would ship out your product on.
Shipments
Shipments are individual deliveries to specific customer or specific delivery address.
Containers
Containers are loose package that would be a result of either manual of automated packing process in warehouse management
Work
Work represents transactions performed by end user to complete any number of business processes in the warehouse from receiving to picking and shipping.
Sites
Sites are collection of warehouses and are typically found within the same geographic region
Warehouses
Warehouses are either virtual or physical space within any distribution network
Locations
Locations can represent virtual or physical space where the product is transacted or stored.
Inbound
Inbound involves receiving and sorting incoming items and products including buying raw materials, receiving goods, handling returns received from customers
Outbound
Outbound refers to the process of sending the items or products out of your warehouse. This includes range of fulfillment actions as moving from shelves to loading docks, preparing items or products for shipping and handling the placement to delivery vehicles.
Cycle Counting
Cycle counting is a process where the inventory accuracy is continuously validated by counting items in the warehouse on regular basis.
Batch Picking
Batch picking is a method of picking orders where the order lines are grouped into a batch. All orders contained within one batch are then picked in one pass.
Zone Picking
Zone picking is a method of picking where several pick zones exist in the warehouse. Pickers are then assigned to specific zones and they are responsible for picking all SKUs located within the zone for each order.
Picking
Picking is a process of collecting goods from their storage locations in the warehouse to fulfill orders or transfer them to different locations.
Pick-and-Pack
Pick-and-Pack refers to the combined process of picking goods from their storage locations and immediately packing them into shipping containers or packaging materials.
Putaway
Putaway refers to assignment of a specific location in the warehouse for the newly received items or when restocking inventory.
Replenishment
Replenishment is the process of restocking the inventory. It can be triggered by prederetermined reorder points or demand forecasting.