A

ASN (Advanced Shipping Notice) - Electronic notification sent by a supplier to inform the warehouse of an incoming shipment, including details about contents, quantities, and expected arrival time.

Allocation - The process of assigning inventory to specific orders or reserving stock for particular channels or customers.

Assembly - The process of combining multiple components or products to create a finished item ready for shipment.

B

Backorder - An order for a product that is temporarily out of stock and will be fulfilled when inventory becomes available.

Batch Picking - A picking strategy where multiple orders are picked simultaneously in a single pass through the warehouse to improve efficiency.

Bin Location - A specific physical location within a warehouse where inventory is stored, typically identified by aisle, rack, shelf, and bin coordinates.

Bundling - Combining multiple SKUs into a single sellable unit or package.

C

Cross-Docking - A logistics practice where incoming goods are immediately transferred to outbound shipping without being stored in the warehouse.

Cycle Count - A periodic inventory auditing procedure where a subset of inventory is counted on a rotating schedule rather than conducting a full physical inventory.

Cartonization - The process of determining the optimal box size and packing configuration for shipping orders.

D

Dead Stock - Inventory that has not sold for an extended period and is unlikely to sell in the future.

Dimensional Weight (DIM Weight) - A pricing technique used by carriers that considers package size in addition to actual weight when calculating shipping costs.

Direct-to-Consumer (DTC) - A business model where manufacturers or brands ship products directly to end customers, bypassing traditional retail channels.

Dropshipping - A fulfillment method where the retailer doesn't keep products in stock but instead transfers orders to a third party who ships directly to the customer.

E

EDI (Electronic Data Interchange) - Standardized electronic exchange of business documents between systems, such as purchase orders and invoices.

ERP (Enterprise Resource Planning) - Integrated software system that manages core business processes including inventory, accounting, and order management.

F

FIFO (First In, First Out) - Inventory management method where the oldest stock is sold or used first.

Fulfillment Center - A warehouse facility dedicated to receiving, processing, and shipping customer orders.

3PL (Third-Party Logistics) - An outsourced provider that manages warehousing, fulfillment, and shipping operations on behalf of ecommerce businesses.

4PL (Fourth-Party Logistics) - A logistics provider that manages the entire supply chain, including coordinating multiple 3PLs.

G

Goods-to-Person (GTP) - An automated warehouse system where inventory is brought to stationary workers rather than workers traveling to pick items.

GS1 Barcode - Standardized barcode system used globally for product identification and tracking.

I

Inbound Logistics - The process of receiving, unloading, and putting away inventory into warehouse storage.

Inventory Turnover - A metric measuring how many times inventory is sold and replaced over a specific period.

IMS (Inventory Management System) - Software used to track inventory levels, orders, and stock movements across locations.

K

Kitting - The process of assembling individual items into ready-to-ship packages or sets, often for subscription boxes or promotional bundles.

KPI (Key Performance Indicator) - Measurable values used to evaluate fulfillment performance, such as order accuracy rate or shipping speed.

L

Lead Time - The time between placing an order with a supplier and receiving the goods at the warehouse.

LIFO (Last In, First Out) - Inventory method where the most recently received stock is used or sold first.

LTL (Less Than Truckload) - Shipping method for freight that doesn't require a full truck, sharing space with other shippers' cargo.

O

Order Management System (OMS) - Software that tracks orders from placement through fulfillment across all sales channels.

Outbound Logistics - The process of picking, packing, and shipping orders to customers.

Overstocking - Maintaining excess inventory beyond what's needed to meet demand, tying up capital and warehouse space.

P

Pick and Pack - The fulfillment process of retrieving items from storage (picking) and preparing them for shipment (packing).

Pick List - A document or digital list that directs warehouse workers to the location and quantity of items needed to fulfill orders.

Pick Path - The optimized route through a warehouse that minimizes travel time during the picking process.

Putaway - The process of moving received inventory from the receiving dock to its designated storage location.

R

Receiving - The process of accepting and inspecting incoming shipments at the warehouse.

Replenishment - Moving inventory from bulk storage to active picking locations to maintain adequate stock levels.

Return Merchandise Authorization (RMA) - A process and tracking number used to manage product returns from customers.

Reverse Logistics - The process of managing returned products, including receiving, inspecting, restocking, or disposing of items.

RF Scanning - Using radio frequency handheld devices with barcode scanners to track inventory movements in real-time.

S

Safety Stock - Extra inventory maintained as a buffer against stockouts due to demand variability or supply delays.

SKU (Stock Keeping Unit) - A unique identifier assigned to each distinct product or variant in inventory.

Slotting - The strategic placement of products in warehouse locations based on factors like velocity, size, and pick frequency.

SLA (Service Level Agreement) - A contract defining expected performance standards, such as order processing time or accuracy rates.

Stock-Out - When a product is unavailable for sale due to depleted inventory.

T

Third-Party Logistics - See 3PL above.

Throughput - The volume of orders or units processed through the warehouse within a specific timeframe.

Tracking Number - A unique identifier assigned to a shipment that allows customers and businesses to monitor package location and delivery status.

W

Wave Picking - A picking strategy where orders are grouped into waves based on criteria like shipping method, delivery zone, or order priority.

WMS (Warehouse Management System) - Software that controls and optimizes warehouse operations including receiving, storage, picking, and shipping.

Write-Off - The process of removing damaged, lost, or obsolete inventory from active stock records.

Z

Zone Picking - A picking method where the warehouse is divided into zones, with workers assigned to pick only items within their designated area.