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Warehouse Management Fundamentals
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SKU (Stock Keeping Unit)
A unique code that identifies each distinct product and service that can be purchased.
Pallet Racking
A storage system designed to store materials on pallets allowing efficient use of vertical space.
Cross-docking
A practice in logistics of unloading materials from an incoming carrier and loading these directly onto outbound carriers with little or no storage in between.
Cycle Counting
An inventory auditing procedure where a small subset of inventory is counted on any given day.
WMS (Warehouse Management System)
Software designed to support and optimize warehouse functionality and distribution center management.
RFID (Radio-frequency Identification)
Use of radio waves to capture information stored on a tag attached to an object, part of automated identification and data capture (AIDC).
LIFO (Last In, First Out)
A method used in managing inventory and financial matters which the last items placed in inventory are the first to be used or sold.
FIFO (First In, First Out)
An inventory management method where the first items placed in inventory are the first to be used or sold.
Pick and Pack
A type of order fulfillment process where items are picked from inventory and then directly packed into shipping boxes.
Putaway
The process of moving goods from the receiving dock and placing them into their most appropriate storage space.
Receiving
The process of accepting and storing incoming goods to a warehouse before they are placed into storage.
Zone Picking
An order picking method where a warehouse is divided into several pick zones, and order pickers are assigned to only one zone.
Wave Picking
A warehouse process where orders are grouped into small batches or waves and picked at the most efficient time.
Just-in-Time (JIT)
An inventory strategy to increase efficiency and reduce waste by receiving goods only as needed for the production process, which reduces inventory costs.
ABC Analysis
An inventory categorization method where items are categorized into three categories (A, B, and C) based on their importance.
Bulk Storage
The process of storing products that are not palletized in larger quantities, commonly in areas without racks.
Economic Order Quantity (EOQ)
A formula used to determine the optimal order quantity that minimizes total inventory holding costs and ordering costs.
Safety Stock
A quantity of inventory kept in storage to protect against stockouts caused by variability in demand or supply.
Value-Added Services
Additional services provided to customers such as product customization, labeling, and packaging which enhance the value of the product.
Reverse Logistics
A process by which companies collect and handle returned, damaged, or outdated products and recycle, repair, or dispose of them.
Continuous Improvement
A method of constantly improving warehouse operations through incremental changes or major innovations, aiming for long-term sustainability.
Lean Warehousing
Warehouse management principles that focus on reducing waste, improving flow, and increasing efficiency.
Throughput
The rate at which goods are received, processed, and shipped out of a warehouse.
Six Sigma
A set of techniques and tools for process improvement aimed at reducing errors and improving quality in manufacturing and business processes.
Kanban
A visual scheduling system that tells you what to produce, when to produce it, and how much to produce.
Slotting
The activity of determining the most appropriate storage location for each item in a warehouse.
Cross-Training
Training employees to perform multiple jobs within the warehouse so they can switch roles when necessary.
Carton Clamping
A forklift attachment that allows the handling of goods without pallets by clamping the load.
Yard Management
The process of overseeing the movement of trucks and trailers in the yard of a warehouse or distribution center.
Dock Leveler
A height-adjusting device used to ensure a smooth transition between a warehouse dock and the trailer during loading or unloading.
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