Glossary

2D barcode

A 2D (two-dimensional) barcode is a graphical image that stores information both horizontally – as one-dimensional bar codes do – and vertically. As a result of that construction, 2D codes can store up to 7,089 characters, significantly greater storage than is possible with the 20-character capacity of a unidimensional barcode.

ADR

Abbreviation for the European Agreement concerning the International Carriage of Dangerous Goods by Road (franc.  Accord européen relatif au transport international des marchandises dangereuses par route), which defines in detail how and under what special conditions dangerous goods, such as hazardous chemicals, hazardous waste, must be stored.

Article master data

Data which describes the article. It must be created for each item in the warehouse. It usually consists of mandatory master data (e.g. article number, barcode) and optional data (e.g. weight, dimensions). Each item can have different data stored in WMS, based on the needs.

Backorder

A backorder occurs when not enough goods are available on stock for complete delivery. In that case, either the delivery is delayed, or delivery is made partially with articles that are on stock. Usually, for articles that weren’t delivered, a new sales order should arrive in WMS once stock is updated.

Barcode

A barcode is a way of marking a product with a series of black and white lines that can be optically recognized by scanning devices. It is used in the product identification process.

Batch or a lot

 A certain amount of raw material of the same composition, processed by the same machine under the same conditions and in one production process, e.g. car tires produced on the same day on the same machine will be part of the same batch.

Best before date management

The management of best before dates (BBD) in WMS comprises at least the storing of dates of expiry after which the goods shall no longer be delivered or sold. This is extremely important in the food or pharmaceutical industries. The rule of the warehouse is that we first send for delivery items that are going to expire first. In order for this to work well, we need to input the best before date for every article. Check Article master data term.

Cross-docking

The term cross-docking is used to describe processes where stocks from incoming goods are not stored but instead are fed directly into the outgoing goods process. Cross-docking not only reduces material handling, but it reduces the need to store the products in the warehouse. Cross-docking focuses on Just in time shipping process.

cross dock scheme
Source

Delivery note

A delivery note, also known as a bill of delivery, is a document that provides both the sender and the recipient with an overview of the delivered goods. For this purpose, essential information is listed on the delivery bill:

  • information regarding supplier and consignee,
  • delivery note number,
  • delivery date,
  • information about the goods (description, weight, quantity, etc.),
  • other information.

It is also used both for comparison of the actual receipt of goods and for billing purposes.

EAN-13

A most common type of barcode, consisting of black and white lines and 13 numbers:

ERP

Enterprise Resource Planning is the name for business software that combines multiple processes and departments in a particular company, and supports the various operational processes of the company in the business areas of procurement, storage, production, sales, finance, accounting… ERP system is separate from the WMS system, and they are interconnected and data exchange is enabled between them.

FEFO

First-Expires-First-Out – products come out in expiration date order. The first to come out are products whose shelf life is shorter than the others.  

FIFO

First-In-First-Out – a method by which products leave the warehouse in the order of entry. The products that first enter the warehouse are the first to come out. 

GS1

Codes that contain information about the item code, serial number, and batch.

High-bay warehouse

Unlike a conventional pallet warehouse, a high-bay warehouse has racks at least twelve meters high. These can be built up to 50 meters. In the case of the particularly high high-bay warehouses, the racks themselves are the load-bearing framework of the building, also known as a silo type of construction. Thanks to the height and construction structure, more pallets can be stored in a smaller space. Storage and retrieval machines are used in such warehouses because they allow automated operation between the individual rows of racks.

Inventory count

A term that refers to the annual inventory of assets and stock within the warehouse, which is legally prescribed and must be performed at least once a year. The importance of conducting an inventory is to reconcile the bookkeeping situation with the actual condition of the property. Read our blog about inventory and how to make it less stressful for your whole organization.

Kitting

The kitting process consists of compiling individual items or component parts into a ready-to-ship package, known as a kit. All individual items are located somewhere in the warehouse which then need to be compiled together and shipped to the 3rd party as one, complete item.

LIFO

Last-In-First-Out – products that last arrived in the warehouse come out first.

Location

Position, i.e. the exact place where some goods are located within the warehouse, eg. A01-05-03.

Mobile terminals

Mobile devices used by warehouse workers when working and handling goods that completely replace pen and paper. They contain a barcode reader that allows faster reading and working with goods.

Packing

A process that marks the physical exit of goods from the warehouse, with accompanying documents. The most common documents indicating the exit of goods from the warehouse are the Exit Order or Dispatch Note.

Pick&pack

Pick & pack refers to the picking of orders in which the individual items are packed directly into a shipping carton or a shipping box, ready to be shipped to the customer.

Picking

A procedure that means the collection of goods within a warehouse, before packing and preparing goods for shipment. Different types of picking are possible, and some of the most common are:

a) “Zone picking” – a collection of goods based on predefined zones within the warehouse, eg. entry zone, exit zone, return zone, etc.., and

b) “Batch picking” – a collective collection of goods, in such a way that the warehouse worker takes over several work orders at once, and in one tour of the warehouse collects more of the same products, for different customers. This type is often used in large area warehouses, to save workers walking time from site to site.

Quality inspection

Process of checking whether an item is ready to be stored in the warehouse and shipped to the customer. It usually occurs during the inbound process of the goods, after the truck arrives, to check if products are in good condition. If any damage is observed, you should contact a customer to see how to resolve this issue.

Receiving

A process that marks the physical entry of goods into a warehouse, with accompanying documents. The most common document on the basis of which goods enter the warehouse is the Entry Order, which contains all the information about the goods entering the warehouse, and is entered via Servis24 WMS interface or imported from the ERP system.

Replenishment

Replenishment is a special form of relocation of items. In the replenishment process, a quantity of one material is e.g. repositioned from a reserved area to an order picking area. The most common process is the replenishment of the goods from higher racks to order picking areas on lower floors, so pickers can do the picking without using forklifts to lower the goods.

Serial number

A serial number is a label in an item that uniquely identifies it in a group of the same items. It consists of a set of alphanumeric characters and is used for items that are such in nature that it is important that each piece can be unambiguously marked. Some of such products are food items where we do not label each piece because it has no practical purpose or is not economically viable or is technically difficult to implement.

Traceability

Traceability means the legal obligation to monitor the quality and safety of food, through information regulated by the official systems and the Food Act. All participants in the food supply chain are responsible for ensuring food quality, and there is a difference between internal and external traceability. In the context of warehousing, it is important to explain internal traceability.

Internal traceability is the responsibility of the manufacturer and supplier who must establish an effective traceability system in their business, usually by labeling the product by batch or LOT item number, in order to monitor the quality of the same product, from the input of raw materials to finished product to the final consumer, so that the course of the product can be checked at any time.

Transfer

This means the act of physically moving goods from one location in a warehouse to another location in the same warehouse, e.g. moving from location 01-02-04 to location 04-02-02, whereby goods are physically transferred from the old to the new location.

Transport unit

A load-bearing stand with or without superstructure, used for compressing products, creating a cargo unit for shipping, storage, and stacking in vehicles, or manipulating with the help of other mechanical means. One example of a transport unit is a pallet. The goods together with the pallet make up a complete unit of cargo, i.e. all the goods on one pallet make up 1 transport unit.

WMS

Warehouse Management System is a software solution that provides complete control over all warehousing operations and processes and accurate insight into the state of the stock, from the moment the goods enter the warehouse till the moment they exit.