Third-party logistics (3PL)

Third Party Logistics, which is a business’s use of an outside company to manage a warehouse or group of warehouses.

3PL is a type of logistics provider that offers product transportation, management, and organizational services in addition to warehousing. A traditional warehouse is simply a space for retailers to store goods until they are purchased, but a 3PL often handles inventory management, picking, packing, and even last mile delivery. The growth of ecommerce has created more demand for 3PL’s. Learn more about third-party logistics.

Business

4PL

As primary managers of supply chain operations of an organization, the services offered by a 4PL include basic 3PL services, along with the following:

• 3PL functions like receiving, warehousing, picking, packing, shipping, returns and reverse logistics

• 3PL management

• Business planning and consulting

• Change management

• Project management

• Logistics strategy

• Logistics management for inbound, outbound and reverse logistics processes

• Inventory planning and management

• Network analysis and design

• Freight sourcing strategy

• Coordination and extension of the supplier base

• Analytics and control tower for transportation expenses, carrier performance and capacity utilization

Business

B2B

Business to Business

Business

B2C

Business to Customer

Business

D2C - US

Direct to Customer

Business

EXW (Sales Orders) - US

Ex Works (EXW) is an international trade term that describes when a seller makes a product available at a designated location, and the buyer of the product must cover the transport costs. Ex Works (EXW) is one of the 11 current Incoterms (International Commercial Terms), a set of standardized international trade terms published by the International Chamber of Commerce.

Business

FIS (Sales Orders) - US

Free Into Store. Entire dispatch to store is controlled by SEKO

Business

EDI - US

Electronic data interchange originally based on a certain US specification. Outside US used as a term for all data interchanges (JSON, XML etc)

Business

Electronic Invoicing (e-Invoicing)

Electronic invoicing (VAT Notice 700/63) - GOV.UK (www.gov.uk) contains all the legal information required

Electronic invoicing is the transmission and storage of invoices in an electronic format without duplicate paper documents. The electronic format may be a structured format such as XML or an unstructured format such as PDF. It offers many advantages over traditional paper invoices. The rapid electronic transmission of documents in a secure environment may provide for:

• structured data for auditing

• improved traceability of orders

• decreased reliance on paper reducing storage and handling costs

• rapid access and retrieval

• improved cash flow

• security and easier dispute handling

Business

Incoterms

The Incoterms® are a set of 11 individual rules issued by the International Chamber of Commerce (ICC) which define the responsibilities of sellers and buyers for the sale of goods in international transactions. Of primary importance is that each Incoterms rule clarifies the tasks, costs, and risks to be borne by buyers and sellers in these transactions. Familiarizing yourself with Incoterms will help improve smoother transactions by clearly defining who is responsible for what and each step of the transaction.  

The Incoterms® 2020 rules are the latest and are grouped into two categories reflecting modes of transport. Of the 11 rules, there are seven for ANY mode(s) of transport and four for SEA or LAND or INLAND WATERWAY transport.  See Incoterms.

Business

Advanced Shipping Notification (ASN)

A document that is sent to a warehouse management system from a supplier that provides information about a pending shipment.

Inbound

Aisle

Walking space between racks

Storage

Back order

A purchase order for an item that is currently out of stock. When a particularly popular item sells quickly, sometimes the warehouse runs out of stock before they get more from the supplier or manufacturer. Retailers will often continue to sell these items to consumers with a note that they are “on backorder” and will be delivered later than normal. When this happens, warehouse teams need to fulfil existing orders as soon as new stock arrives rather than first moving that inventory to storage.

Order

Backhaul

The process of moving goods from what was originally their final destination back to their origin point. In warehousing, backhauls can also be truckloads of goods that customers have returned or for which they have requested an exchange. An incoming backhaul will typically need to be inspected for damage and then, once approved for quality, restocked. Learn more about backhauling and reverse logistics.

Storage

Bar coding

The machine-readable identification system used to track, scan, and process inventory.

Stock

Barcode

A marking made up of a series of bars and spaces used for identification of products in which a scanner is used to read the encoded information. Barcodes come in different dimensions and types - 1D, 2D, 3D including QR codes

What is 1D, 2D, 3D Barcode? ~ Barcode Label Guru

Stock

Batch picking

A picking process in which a batch of multiple customer orders containing similar items is gathered from warehouse shelves at the same time. For instance, three separate customer orders including a box of pencils could be batched so the picker needs to walk to the pencil-box storage location only one time rather than three. Learn more about warehouse picking processes.

Picking

Best Before Date (BBD)

Best before date is used for ensuring units are picked according to the requirements of the order. It is important that putaway is done to maximise efficiency of picking operations

Storage

Bill of lading (BOL)

An official document detailing items contained in a shipment. The bill of lading moves with a shipment from the sender to the shipper and then to the consignee (final recipient). When a warehouse receives a shipment from a supplier, it comes with a bill of lading that processing clerks use to verify that the delivered goods match the purchase order.

Documents

Bin

Any storage type within a location that contains one or more spaces or slots for product (i.e. a bin of nails, a bin containing slots of a particular document type, etc.). Typically, it is the most specific a warehouse location can get.

Storage

Cantilever rack

Storage device with prongs rather than shelves that are used to store long and/or oddly shaped items. Cantilever racks may be free-standing or mounted to a wall.

Stock

Cartonisation

Companion to wave picking. Cartonisation automatically determines the number of shipping cartons required for a single order based on product and carton dimensions. It also takes into account the weight tolerance of both cartons and shippers. Pickers are then instructed to place product into the specific shipping carton that was predetermined by the cartonisation function.

The advantage of cartonisation is that orders being shipped by common carriers like UPS or FedEx can be picked into their final, labelled shipping containers. Even if there are multiple boxes on a shipment, there is no need to consolidate the order in a staging area prior to shipment.

In addition, warehouses may be configured to automatically ship and manifest sales orders without any additional physical handling by shipping staff.

Picking

Cluster picking

Workers travel through the warehouse retrieving SKUs on multiple pick lists and placing them into separate bins/containers. Each container is associated with a separate order/pick list. This eliminates repeated trips to the same pick location and removes the need for sorting since this is done by pickers at each pick location. However, it requires the use of sophisticated WMS solutions for proper scheduling and assignment of clusters.

Picking

Cold storage

A section of a warehouse in which refrigerated or frozen products are stored. Cold storage is most commonly found in food-grade warehouses.

Stock

Collaborative picking mobile robots

Robots assist in order picking activities by handling the manual task of moving products around. On getting to a pick location, workers retrieve items from their storage location and place them in a bin/container on the robot.

Collaborative mobile robots help minimize walking through real-time route optimization and can be programmed to follow discrete, batch, zone and cluster picking methods. Collaborative mobile robots also leverage artificial intelligence and machine learning to optimize picking routes and tasks in real-time.

Picking

Cross-docking

A distribution process in which goods are received from a supplier and immediately sorted, packed, and shipped to a customer rather than being moved to a warehouse shelf for storage. Cross-docking is often used in warehouses to fulfill customer orders for items that were on back order.

Inbound

Cycle count

An auditing process in which inventory is counted on a cyclical basis. Inventory is counted in sections on a regular basis to make auditing more manageable and ensure that inventory records are accurate. To learn more, check out our guide to warehouse auditing.

Stock

De-kitting

De-kitting Is the reverse process, returning kitted SKUs into individual items, often needed when kits are returned, or more kits were created than were actually needed.

Stock

Dimensional weight (DIM)

A measurement used by couriers and shipping carriers to determine the cost of sending goods. To calculate the dimensional weight of a package, you multiply the length times the width times the height.

Stock

Directed Advance Allocation

In Warehouse Management Systems any sort of Advanced Allocation can significant add functionality to sales orders, purchase orders, and better inventory management in the warehouse. Enhanced functionality in warehouse operations can expand to many areas including picking, receiving, stock locator, counting, order allocation, and wave planning enhancements: Some of the various functionality inside Warehouse Management Systems (WMS) with Directed Advanced Allocation could include:

Picking Enhancements
Ability to enable User-Defined Prompts when sales orders are waved, when users start picking a wave or when users pick an item.
Hazmat Restrictions

• Carton restrictions based on weight, cube or value

• Ability to Capture box size during picking

• Ability to Repack Order, Repack Carton, Relabel Carton, Combine Cartons, Swap
  Serials

• Ability to create an Incident when pickers indicate bins are not empty

Receiving Enhancements

• Configurable workflow prompts for bin, carrier, packing slip, receive date, freight status,
  comments, weight, cube

• Ability to enable User-Defined Prompts when purchase orders are waved, when users start
  receiving a wave or when users receive an item.

• Validate quantities upon PO Completion

• Ability to send internal email notifications when orders are received

• Ability to check UPC Barcode during Receiving

Stock Locator Enhancements

• Decimal quantities

• Ability to enter Incidents via the handheld

• Replenishment Letdown by Quantity, Product, Pick Zone

• Restrict Consolidation of Stock with different Expiry or FIFO Dates

• Auto-breakdown of Packsizes in Random Bins during Allocation

Order Allocation Enhancements

• Infinite Stock

• Background Allocation

• Ability to Define and Schedule Allocation Templates

• Ability to print Packing Slips for Nuked Sales Orders

• Allocation and replenishment based predefined packsizes

• Only ship goods in pre-defined packsizes

• Days to Expiry Allocation

Wave Planning Enhancements

• Generate Wave labels, Pre-packslip labels, Packing Planner labels,

• Paper Pick tickets

• Pack & Hold, Ship with Other Goods, Order Consolidation at Waving

• Ability to Define and Schedule Wave Planning Templates

• Sort Full-Case (Slapper) Labels

• Set End-of-Line and Carton Type during Waving

Orders

Directed Putaway

A process in which the WMS determines where a given receipt of goods should be stored in the distribution centre. Directed putaway is tightly connected to the concept of “zoning” in which storage locations are group together, examples being “fast-movers” or “HAZMAT” products. With direct putaway, companies use a WMS to configure a hierarchical set of rules to identify the best location to store a receipt of inventory. If there is no space available in the preferred zone (e.g., fast-movers), the WMS would look for the next best available zone (e.g., medium-movers).

Typically, a warehouse associate would receive a message on a wireless device informing him or her of the preferred storage location, which would be confirmed with a scan of the location bar code as the product is putaway. In some cases, the associate may be asked to put some of the received inventory directly into a forward pick location rather than reserve storage, say if the warehouse was previously depleted of that SKU before the receipt.

Inbound

Discrete picking

A process of order picking in which the picker pick all the items for one particular order.

Picking

Dispatching

The process of organizing, scheduling, and managing vehicles and drivers. Warehouses that have an in-house local delivery team often have a fleet dispatcher who coordinates packing, vehicle loading, and delivery scheduling. Learn more about fleet dispatching.

Outbound

Distribution Centre (DC)

A specialized warehouse or fulfilment centre where goods are sorted, packed, and processed for shipping to their final destination (the customers). Many warehouses are also distribution centres, meaning they not only store or warehouse goods but also offer picking, packing, and even delivery services.

Buildings

Drop tailer

A truck trailer that is dropped off for loading and then picked up at a later time. Sometimes couriers will have a driver drop off an empty trailer and pick up a full one to maximize efficiency.

Outbound

Drop shipping

A dropshipper is a person or business that uses the dropshipping model of buying inventory and fulfillment logistics from a third party, instead of warehousing and shipping the products themselves.

Because dropshipping relies on a third-party supplier to handle inventory warehousing and order fulfillment, a dropshipping operation may be managed by dozens of employees or a single business owner.

How dropshipping works

The dropshipping process is a relationship between a customer-facing store and a supplier.

There are two common approaches to adopting a dropshipping business model. The first is to seek out one or more wholesale suppliers on your own using a supplier database. Examples of popular online supplier databases include AliExpress, SaleHoo, and Worldwide Brands.

• Customer places an order from your online store

• Store automatically sends the order to your dropshipping supplier

• Dropshipping supplier prepares your customer’s order

• Your dropshipping supplier ships the order directly to your customer

Dry storage

A section of a warehouse in which products are stored in a nonrefrigerated environment that is at or around 50 degrees Fahrenheit. Dry storage may still be temperature-controlled to combat extreme outdoor weather conditions.

Storage

European Article Number (EAN)

GS1 UK | What is an EAN?

A European Article Number (EAN) is the name given to the standard barcode image you see on most products sold around the world. It represents the number – or GTIN – you see beneath it. Retailers and marketplaces often ask for ‘EANs’ when you list your products with them. What they are really asking for is the GTIN, or barcode number, which you can create when you join GS1 UK.

EAN uniquely identifies products and ensures seamless operations across the supply chain. EANs have 13 digits (including an additional country code).

Stock

Estimated time of arrival (ETA)

The expected time a vehicle or vessel will get to its final destination. Warehouses typically receive an ETA for trucks carrying incoming stock. Warehouses may also need to provide an ETA for delivery of outgoing stock. Learn more about delivery estimates.

Inbound

Estimated time of delivery (ETD)

The expected time goods will be delivered. Suppliers and manufacturers may supply receiving clerks with an estimated time of delivery instead of an estimated time of arrival for incoming inventory. Learn more about delivery estimates.

Outbound

Estimated time of departure (ETD)

The expected time a vehicle or vessel will leave its point of origin. Warehouses often use this to note when a delivery truck or courier vehicle will be completely loaded and depart a loading bay. Learn more about delivery estimates.

Outbound

First in, first out (FIFO)

An inventory management strategy based on the principle that the first items into the warehouse should be the first ones to leave. Food warehouses often employ this strategy to ensure that products expiring the soonest are the first to be shipped out.

A combination of Date Controlled and Lot controlled inventory control method for products with shelf life, in which first product to arrive are first product to be taken out of stock

Stock

Forward-pick location

An easily accessible storage area in which small quantities of frequently purchased items are placed. Forward pick locations are used to make picking faster when orders come in. Pickers can quickly access items in the forward pick location and then replenish that supply from a secondary location when it won’t impact customer turnaround times.

Storage

Gaylord box

A bulk shipping and storage box sized to fit on top of a pallet. Gaylord boxes are frequently used in the logistics industry to transport and easily store goods of many shapes and sizes.

Stock

Goods Received Notification (GRN)

A document that serves as confirmation that the goods have been delivered and received at the Warehouse

Stock

Importer of Record IOR / Exporter of Record

Importer of Record IOR and Exporter of Record EOR are services established to provide a single organization to fulfil international trade requirements. Importer of Record IOR / Exporter of Record EOR ensures faster, simpler and more reliable importing/exporting worldwide. They are responsible for everything from documentation to understanding the relevant laws and regulations for the countries involved in the export.

The company that provides Importer of Record IOR services and Exporter of Record EOR services can be the owner, the purchaser/seller of foreign merchandise or the freight forwarder. In the case of an Importer of Record IOR, it may also be a customs broker with a power of attorney (POA) to assume the activity of the importer.

In order to manage and supervise import and export operations, Importer of Record IOR / Exporter of Record EOR include some direct responsibilities as:

• Classification and valuation of the merchandise before the import.

• Overall review of the export processes.

• Compliance of the destination/source country regulations.

• Paying all the taxes upon an international trade.

• Presenting the specific declarations to government agencies.

• Prepared all the required documentation (certifications, permits and authorizations).

An importer of record (IOR) provides a service to help facilitate the import of goods into a country where it has no representation. They also provide a service if the exporter, shipper or origin company wants the asset that is being imported to remain their property.

The role of importer of record to ensure that goods are imported legally following the relevant laws and regulations of the importing country and is responsible for filing legally required documents as well as ensuring that any assessed import duties and taxes are paid.

The IOR has responsibility for all of the supporting documentation that goes along with an import. This may include export and import licences, permits, local rules and regulations, as well as other paperwork and more. The IOR will also be responsible for calculating and paying duties, taxes, tariffs and fees. These will all require additional paperwork and forms to be filled out.

The importer of record has a very important role to play in the entire customs compliance process. If you’re intending to export goods into any country outside of a free trade zone, then an in-country presence may be required to import the goods into that country. If you don’t have a presence in the country, then this can create problems. In some instances, it may make it impossible for you to ship the goods to your intended destination country. An importer of record facilitates these trades while ensuring the customs process is carried out appropriately.

By appointing an IOR you can avoid potential confusion about who has ownership of the goods. Typically, an import transaction might involve suppliers, distributors and end-users. The IOR, in effect, becomes the temporary owner of the goods until they have been accepted by a distribution centre or the end-user has taken ownership of the goods.

• Certificate Of Origin - states where a product was manufactured, processed or produced and it’s often needed for customs clearance in your destination market.

• Commercial Invoice - Required by the customs authorities in the destination country and is used to establish the value of imported goods and for calculating the duties. Contains seller and buyer details, the terms of sale, a description of the goods and quantity, the weight of the shipment, and details of other applicable charges such as insurance and freight costs.

• Proforma Invoice - What the seller is intending to ship and the amount they’ll invoice for once that order has been shipped. This invoice is sent to the buyer by the seller, usually in advance of shipment. It will detail the goods that are being supplied, their price and the quantity. It should contain the total order value, along with any other charges that are to be applied to facilitate the shipment. A proforma invoice is often needed by the buyer to allow them to initiate the whole import process.

• Packing List - an itemised list of the goods that are being shipped. It will include a detailed list of content, the quantities involved, the weight of each package and a description of the good. It’s the job of the seller to compile the packing list and then send it to the recipient. This makes it easy for the buyer to check the contents of the package against the packing list and their order.

• UK Export Licence - special requirements for some controlled goods; items such as firearms, medicines, animal products and plants.

• Dangerous Goods - any dangerous goods will require special paperwork.

• Local Regulations - special documentation for some countries are required to satisfy local regulations. For example, documentary evidence that your goods meet the products standards of their destination jurisdiction may be required.

• Transport Documentation - range of documents needed to assist the safe transportation process.

• Export Cargo Shipping Instruction - gives a freight forwarder detail of the goods as well as how they’re to reach their destination, an export cargo shipping instruction will be required.

• Standard Shipping Note - contains a range of information about the goods, and the companies that are involved in shipping and receiving them. There is a standard shipping note for shipping goods overseas.

• Bill Of Lading Or A Waybill - Depending on the form of transport you choose to ship your goods, a Bill of Lading (sea freight) or waybill (air transport) will be issued when your carrier safely receives your goods. This can provide evidence if there are any problems with the shipment.

• CIM Consignment Note - for any rail journey. Contains details of the goods that are being transported. The consignment note is signed/stamped by the sender and the carrier.

• Insurance - depending on the contents of your shipment you may need insurance. The buyer may require proof of insurance, particularly if the costs are being passed on.

• Payment Documentation - usually includes Bank Collection or Documentary Collections and a Letter of Credit. A documentary collection is used primarily for shipments by sea, a letter of credit (L/C) is a guarantee from a bank on behalf of the buyer.

Shipping

Just in time (JIT)

In warehousing, “just in time” is a supply-chain management method with which products are ordered, stored, assembled, or manufactured to fulfill an order just in time. No matter how skilled you are at calculating demand, you will run into incidents where demand exceeds your supply. Many companies store safety stock, or more stock than their predicted demand requires, to cover them when these demand surges occur. The JIT method of inventory management doesn’t use safety stock to cut down on storage costs.

Inbound

Kit to Order

Build kits on the fly if the requested kits are not in stock but the components that make up the kit are in stock. Sales Orders can be loaded with kits. If the kit is in stock, then this will be allocated. If the Kit is not in stock then Seko 360 will attempt to use the components that make up the kit if stock is available for all these components.

 A sales order can be sent with individual items and kits. In addition, each of the individual items ordered can also appear as items within the requested kits.

Orders

Kitting

Kitting is the process of combining two or more individual items/SKUs into a one new item for shipping, with the kitted package often receiving its own SKU number. A WMS should be able to manage the kitting process while maintaining visibility into the component SKUs of the kit. De-kitting Is the reverse process, returning kitted SKUs into individual items, often needed when kits are returned, or more kits were created than were actually needed.

Stock

Last mile delivery

The process of transporting goods from a warehouse or distribution center to their final destination (the customer). Last mile delivery refers exclusively to the final stage of the logistics supply chain (and happens after packing and vehicle loading).

Outbound

Lead time

The time it takes to complete a logistics process. Lead time for final delivery, for instance, would include the time it takes for picking, packing, vehicle loading, and last mile delivery. The lead time for inventory replenishment includes the time required to fulfill a purchase order, transport goods from supplier to warehouse, inspect the shipment, and then restock that inventory.

Business

Less than truckload (LTL)

A type of freight shipping in which goods that weigh more than 150 pounds but take up less than a full truckload are transported. Shipping carriers use LTL shipping to move goods for multiple retailers in the same truckload. Each retailer pays only for the cargo space their items take up.

Outbound

Lights-out warehouse

A warehouse that employs machines and automated systems to manage and move products rather than human labor.

Warehouse

Line

The products in an order that share the same SKU or UPC number

Order

Location

A labelled, designated area in a warehouse where a picker goes to retrieve product (SKU) for an order. It’s typically identified with a series of alphanumeric barcodes that pickers use to scan in and out product to ensure accurate quantities and locations (see Bin within location)

Storage

License Plate Number (LPN)

A value usually in the form of scannable barcode for grouping and managing inventory in the form of a container/bin boxes

Storage

Lot No.

Manufacturing number use to track and to identify a specific batch of products that were manufactured under the same conditions. Can be used for picking specific product batches rather than any of the products available with that SKU.

Product

LTL

Less than truckload (see less than truckload for definition).

Outbound

Manifest

1. Document detailing the dispatch (shipment) with its packages. Once a manifest has been created, the shipment details cannot be changed.

2. List of shipments in one document. SEKO360 does not provide this functionality out of the box. (confirm)

Shipping

Mobile scanner-based picking

Workers are equipped with mobile scanners that display pick lists as well as the location of each SKU on the list. Pickers scan each item as they are picked — if they scan items not on the pick list, the mobile scanner notifies them of the error. This error-detection feature helps improve picking accuracy. Warehouse managers can also provide workers with optimized picking routes to increase efficiency.

Picking

Multi-batch order picking

Simultaneously picking items for multiple orders. Workers typically use multi-tiered picking carts to pick multiple SKUs for several orders at a time. This picking system is used for orders coming from different areas in the warehouse and minimizes overall travel time since workers go through the facility once to fulfill multiple orders.

Picking

Order

All the products that are including on one transaction from a customer.

Order

Packing

Preparing purchase goods for last mile delivery. Packers put purchased items into boxes and prepare them to be loaded onto delivery vehicles.

Outbound

Pallet

A flat structure, typically made out of wood, used to move goods. Pallets make is easier to move and store large items (or large quantities of items). They can be easily maneuvered with a forklift, pallet jack, or other machinery.

Outbound

Pick and pack

A common way to refer to the processes of picking and packing within a warehouse (see picking and packing for definitions).

Picking

Pick list

The list of items pickers need to retrieve from warehouse shelves or storage. Customer orders are broken down into lists of purchased items or “pick lists,” which are given to pickers to retrieve.

Picking

Picking

The process of gathering or picking purchased items from warehouse shelves. When a customer makes a purchase, pickers gather those purchased items from their storage location and bring them to packers. Learn more about warehouse processes.

Picking

Pick-to-light

Automated picking system requiring the installation of pick-to-light LEDs and barcode scanners on racks and shelves throughout the warehouse. Once a picker scans a barcode attached to a shipping carton (that holds the contents for a single order), the LEDs for SKUs listed in the order begin to glow. Workers follow these lights to retrieve SKUs on their pick list.

Picking

Purchase order (PO)

A purchase order is a document that is sent from a buyer to a supplier requesting an order for merchandise. The purchase order usually lists the type of item, quantity, and agreed-upon price.

Documents

Put-away

Removing incoming orders from the location where it is received to the final storage area and recording the movement and identification of the storage location where it has been placed. If done manually this requires the operator to find bins which require replenishment. Directed put-away is far more efficient.

Inbound

QR Code

A Quick Response (QR) code is a scannable code, made up of various black and white squares, that allows cameras or smartphones to read it and take the user to a stored URL or other information.

Stock

Rack / Section

Large sections of shelving units that store products. Racks/units might be identified as an entire shelving unit spanning one side of an aisle or as small sections within a long until of shelving.

Storage

Radio-frequency identification (RFID)

A wireless tracking and data-transfer system. In warehousing, RFID tracking is used to monitor inventory. RFID tracking tags are placed on inventory as it comes in, and sensors throughout the warehouse are able to then track those goods as they are moved throughout the facility.

Stock

Receiving

The process involving the physical receipt of merchandise, its inspection for accuracy and to identify any damage, the determination of where the stock will be stored, delivery to that location, and the completion of receiving reporting.

Receiving

Replenishment

The restocking of inventory. “Restocking” is used differently depending on which warehouse department you work in. Receiving clerks, for example, may refer to goods arriving from a supplier to fulfill a back order as replenishment. Pickers, on the other hand, often use replenishment to refer to stock that needs to be moved from a secondary location to a forward pick location.

Stock

Reverse logistics

The process of moving goods backward from what was originally their destination (typically the customer) to their origin point. Reverse logistics is used when a customer returns or exchanges an item. The process of retrieving that returned item from the customer, bringing it back to the warehouse, inspecting it for quality, and then restocking it is reverse logistics. Learn more about reverse logistics.

Outbound

RFID

Radio-frequency identification (see radio-frequency identification for definition).

Stock

Route optimization software

Dispatch software used to simplify last mile delivery. Route optimization software automatically calculates the most efficient routes for delivery teams. Many warehouses and 3PLs integrate route optimization software with the warehouse management system to give management teams end-to-end visibility across their supply chain. Learn more about route optimization software.

Distribution

Row / Shelf

Horizontal space spanning across a rack.

Storage

Safety stock

Extra inventory kept on hand (or stored in a secondary storage location within a warehouse) to mitigate stockouts if demand rises unexpectedly or a supplier experiences delays. Safety stock is most commonly used for popular products that do not expire.

Stock

Serial No.

A unique identifier assigned to a specific product by the manufacturer which helps to distinguish the specific date and time or location that particular product was manufactured. Products can be serial number controlled in the DC.

Product

Shelf / Row

Horizontal space spanning across a rack.

Storage

Single order picking

Pickers move through the warehouse and retrieve SKUs one by one to fulfill one order at a time. This picking system works well for small warehouses that handle simple orders with just a few items.

Picking

Small Package Shipping (SPS)

Small parcel shipping is designed for small packages to be delivered efficiently rather than in large trucks as a LTL (Less Than full Load)

Stock

Stock-keeping unit (SKU)

A barcode and/or unique identification number assigned to products by a retailer. SKUs typically consist of a scannable barcode as well as a unique numeric or alpha-numeric number. SKUs are different from UPCs because they are managed and assigned by the company selling the product, not by the Global Standards Organization. Because of this, it is possible for products from two different retailers to wind up with the same SKU. It is common for products to have both a SKU and a UPC.

Stock

Stockout

A stockout typically indicates that a warehouse has run out of inventory for a certain product, and a new purchase order has not been placed yet. Stockouts can also happen when retailers decide to stop carrying a certain product. Learn how to reduce stockouts using logistics scheduling.

Stock

Supply chain

All of the processes used to produce and move products. A warehouse supply chain may consist of receiving, put-away, picking, packing, and vehicle loading. The full logistics supply chain includes manufacturing, warehousing, and last mile delivery. Learn more about the warehouse supply chain and material movement within your facility.

Business

Station

Generic name for SEKO Branch, Location, Area where SEKO business happens. It may or may not be owned by SEKO

Business

Temporary bin

Bin usually made from cardboard or corrugated plastic which are designed for when there is more stock as there is likely to be increased demand

Picking

Unit

One particular physical item or product.

Stock

Universal Product Code (UPC)

The unique barcode and 12-digit number assigned to products and managed by the Global Standards Organization. Learn more about the Universal Product Code.

Stock

Voice picking

Pickers receive verbal instructions on what items to pick and the items’ locations in real-time. These instructions are sent through headsets (worn by the pickers) connected to an order management system to speed up the picking process and improve accuracy. After they’re done, pickers verbally confirm that the picking task is complete.

Picking

Warehouse management system (WMS)

Management software used by warehouse teams to track inventory and manage warehouse operations. This is the interface you’re likely to access from a scanner, an iPad, or another device while working in a warehouse. Learn more about warehouse management systems. The software solution that keeps track of all warehouse operations including receiving, putaway, picking, shipping, and inventory.

Business

Wave picking

Variation of batch and zone picking that is particularly useful for large warehouses that regularly receive multiple high-volume orders. Orders are grouped into sets or waves according to factors like customer location, order frequency, order type, picking zones, delivery date, etc. Workers simultaneously pick SKUs from multiple zones and forward them for sorting and consolidation into individual shipments. Waves are assigned to pickers and schedules to maximize efficiency.

Picking

Zone

Specific area of the warehouse containing a set of locations

Storage

Zone picking

A picking process in which a team of pickers each picks products from a particular zone and then combines picked items before packing. Zone picking is often used in larger warehouses and those with clearly designated storage areas, such as cold and dry storage. Learn more about warehouse picking processes.

Picking

Economic Operator Registration and Identification number (EORI)

An EORI number is a European Union registration and identification number for businesses which undertake the import or export of goods into or out of the EU. On further discussions with the Carrier Providers regarding Brexit they require this on a Client level. Currently, each client can have 2 EORI numbers:

Companies importing goods into or exporting goods from the European Union need an EORI number. This number is used to exchange information with customs authorities.

Customs and Tax (EU)

VAT On E-Commerce (VOEC )

VOEC stans for VAT On E-Commerce.

The VOEC number is a unique 7 digit number starting with 2. It is issued by the Norwegian Tax Administration to sellers (e-commerce platforms, online stores etc.).

We only need to include the VOEC number when:

• Shipping to Norway

• A VOEC Number has been setup for a Client in the TMS

Customs and Tax (Norway)

Import One Stop Shop (IOSS)

The EU’s Import One Stop Shop (IOSS) is a VAT registration scheme a business can use from 1 July 2021 to comply with the EU’s new VAT e-commerce rules.

Currently EU and non-EU sellers selling goods online to EU consumers can import the goods into the EU, directly to the consumer, import VAT-free if the consignment of good(s) is valued at €22 or below. This ends 1 July 2021 and all imports will be subject to EU VAT. 

Customs and Tax (EU)

Overseas Vendor Registration (OVR)

OVR stands for Overseas Vendor Registration - a law that requires overseas vendors or suppliers who are supplying imported digital services to individuals or businesses to be registered under GST in Singapore.

CCustoms and Tax (Singapore

. This ends 1 July 2021 and all imports will be subject to EU VAT. 

Customs and Tax (EU)

Overseas Vendor Registration (OVR)

OVR stands for Overseas Vendor Registration - a law that requires overseas vendors or suppliers who are supplying imported digital services to individuals or businesses to be registered under GST in Singapore.

Customs and Tax (Singapore)

ASN

Advanced Shipment Notice

a document sent to a Warehouse management system to provide information about an upcoming shipment from a Supplier

BBD

Product Attribute which is Date Controlled (Best Before Date)

Indicates the date when a product will be of best quality

COO

Country of Origin

Country where product was manufactured

DC

Distribution Center

a specialized warehouse or fulfillment center to receive, store and ship products to customer

EAN

European Article Number

EAN uniquely identifies products and ensures seamless operations across the supply chain. EANs have 13 digits (including an additional country code)

FIFO

First in, first out

A combination of Date Controlled and Lot controlled inventory control method for products with shelf life, in which first product to arrive are first product to be taken out of stock

GRN

Goods Received Notification

a document that serves as confirmation that the goods have been delivered and received at the Warehouse

LPN

License Plate Number

usually in the form of scannable barcode for grouping and managing inventory in the form of a container/bin boxes

Lot No.

Product Attribute which is Lot Number Controlled

Manufacturing number use to track and to identify a specific batch of products that were manufactured under the same conditions

MID

Manufacturer ID

Manufacturer Identification fields

on-the-fly

automatic data entry

A function in SEKO360 where data is automatically created when using ihub Load services such as Load Supplier and “Ship To”

Serial No.

Product Attribute which is Serial Number Controlled

A unique identifier assigned to a specific product by the manufacturer which helps to distinguish one product from another

SKU

Stock-keeping unit

a unique identifier assigned to each product in a business’s inventory system also called as Product Code

WMS

Warehouse Management System

a software platform that helps manage and optimize process of Inbound and Outbound movement of Inventory

SPS Commerce

Provide Carrier Bespoke Labels

Retail Compliance

Scurri

Delivery Management Software

• /wiki/spaces/SSTD/pages/2359960617

• DHL

• DPD

• FedEx

• /wiki/spaces/SSTD/pages/2359960641

• /wiki/spaces/SSTD/pages/2359958680

• /wiki/spaces/SSTD/pages/2359953036

• OmniParcel Reference Rules

• Omni Parcel

• Omni Parcel Address Mappings

• /wiki/spaces/SSTD/pages/2432106498

• /wiki/spaces/SSTD/pages/2359960586

Carriers

Goods carriers

• /wiki/spaces/SSTD/pages/2359960538

• /wiki/spaces/SSTD/pages/2359951987

• /wiki/spaces/SSTD/pages/2359951713

Carrier Providers

Carrier Providers

Bulk Storage

(upstream) reserve/backup storage areas for replenishing pickface locations. It hold larger quantities of items and are not directly accessible for picking.

Pick Face storage

(downstream) primary storage and picking areas. Location for loose picking

Floor Spot

Floor spots refer to specific locations on the warehouse floor where items are temporarily stored or staged before replenishment of Pick Face.

These spots are often used for overflow storage or for items awaiting further processing (e.g., quality checks).

Replenishment Level

It is the quantity set when an item’s inventory drops below the minimum level, triggers replenishment

System Replenishment

automated process where the restocking based on predefined rules or algorithms.

A scheduled job will run every night and will create replenishment record the night after.

Forced Replenishment

occurs when external factors (such as customer orders or production requirements) drive restocking, regardless of predefined thresholds. It responds to immediate needs driven by external factors.

Build-on-the-fly

Components are assembled as Kits as upon Dispatch Request

Pre-assembled Kits

Ready-built kits provided by Clients or assembled through Work Order

Components/Kit Components

Separate SKUs/Items/Products that makes a KIT

Parent KIT/ KIT SKU

New SKU created which composed of 2 or more SKU (components)

Line

Line Number of Items/SKUs in a Sales Order

Barcode

Dispatch barcode generated in the Dispatch Note

Print

Generate documents ON SCREEN- Download/Save file or Print externally.

Wave Configurations

Client Requirements and conditions for wave picking

Kit to Order

Order for kits to be dispatched, first looking at pre-assembled kits followed by build kits on the fly.

Kit Work order

Work order (internal process directed by client) to assemble kits ready for quick dispatch.

GS1 (Global Standard 1)

a global language for identifying products and locations. GS1 assigns unique numbers to items. These numbers help businesses track inventory, manage supply chains, and ensure accurate checkout at the store.

This is also used when generating the Dispatch Carton Labels (SSCC)

SSCC (Serial Shipping Container Code)

a unique code that identifies the container and everything inside it for storage and/or transport purposes.

SPS (Small parcel Shipping)

refers to sending an individual small package through a shipping carrier.

See Also: https://seko.atlassian.net/wiki/spaces/SMAN/pages/2727841678/WMS+Glossary#Glossary-of-WMS-Terms

SPS Commerce

offers a feature called Carrier Service within their Fulfillment platform.

See Also: https://seko.atlassian.net/wiki/spaces/SMAN/pages/2727841678/WMS+Glossary#Third-Party-Integrations-via-TMS

Carrier Label

are stickers or tags that provide carriers/couriers (such as USPS, FedEx, or UPS) with essential information (such as sender’s and recipient’s names, addresses, tracking numbers) to help direct the package to its intended destination.

TMS (Transportation Management System)

Software that helps businesses plan, execute, and optimize the physical movement of goods. It manages shipping, carrier selection, route planning, and freight tracking.

Temp Bin (Temporary Bin)

used to temporarily store items before they are moved to their final storage location or processed further.

See Also: https://seko.atlassian.net/wiki/spaces/SMAN/pages/2727841678/WMS+Glossary#Glossary-of-WMS-Terms