Glossary of Terms for Warehouse Management Systems (WMS)

Dashboard

A visual representation of real-time data from the WMS, displaying key performance indicators (KPIs), metrics, and operational insights like stock levels, order status, and shipping timelines.

Demand Forecasting

The process of predicting future customer demand for products based on historical sales data, seasonality, and market trends. It helps optimise inventory levels and stock replenishment.

Demand Fulfilment

The goal is to optimise processes, reduce lead times, minimise errors, and enhance overall customer satisfaction.

EAN (European Article Number)

A standard barcode numbering system used in global trade to identify a specific retail product type, in a specific packaging configuration, from a specific manufacturer.

E-commerce Integration

The capability of a WMS to integrate with online retail platforms to synchronise inventory and orders.

EDI (Electronic Data Interchange)

A digital system for exchanging documents such as purchase orders, invoices, and shipping notifications between trading partners, improving accuracy and efficiency in warehouse operations.

ERP (Enterprise Resource Planning)

A type of software used by organisations to manage and integrate the core business processes. An ERP system helps businesses automate and streamline functions such as accounting, procurement, inventory management, order fulfilment, human resources, and more.

FIFO (First In First Out)

The method of rotating inventory to use the oldest received product first.

Inbound Process

The inbound process refers to the series of activities and workflows involved in receiving and managing goods or materials coming into a warehouse.

Inventory Turnover

A metric that measures how quickly inventory is sold and replaced within a given period. Higher turnover indicates efficient inventory management, while low turnover may signal overstocking.

Inventory Accuracy

The measure to which physical inventory matches recorded inventory in the WMS.

JIT (Just in Time)

Just In Time (JIT) is a supply chain management and inventory strategy that aims to reduce waste by receiving goods only when they are needed in the production process, rather than storing large quantities of inventory.

LIFO (Last In First Out)

The method of rotating to use the most recently received inventory first.

Location Based Picking

A picking strategy where orders are filled based on the location of items in the warehouse. It may be organised in zones or shelves to optimise picking efficiency.

Order Fulfilment 

The complete process of receiving, processing, packing, and shipping customer orders.

Order Management

The process of tracking and fulfilling customer orders efficiently.

Order Picking

The process of retrieving items from a warehouse to fulfil customer orders. Different picking methods include single order picking, batch picking, and zone picking.

Outbound Process

The outbound process in warehouse management refers to the series of steps that occur after an order is placed by a customer, leading to the fulfilment and shipment of goods from the warehouse.

PI (Perpetual Inventory)

The continuous counting and updating of stock

Putaway

The process of moving received goods from the receiving area to their designated storage locations within the warehouse. This is a critical function for organising inventory and ensuring efficient order fulfilment.

Real-Time Tracking

Real-time tracking is the ability to track inventory, order status, and shipments in real time, providing visibility and transparency into warehouse operations and improving decision-making.

Receiving

The process of accepting and inspecting incoming goods in the warehouse, followed by documenting and recording them into the WMS for storage and future picking.

Replenishment

The process of restocking inventory in the picking areas of a warehouse, usually triggered when stock levels fall below a certain threshold, to ensure uninterrupted order fulfilment.

Return Management

The process of handling product returns, including receiving returned items, inspecting them, and restocking or processing them for resale or disposal.

RFID (Radio Frequency Identification)

A technology used to automatically identify and track inventory items through radio waves. It is often used as an alternative to barcode scanning for real-time inventory management.

Sequencing

Warehouse sequencing is a logistics and operational strategy that ensures inventory is organised and picked in a specific, logical order to optimise efficiency, reduce errors, and improve overall workflow. It’s often employed in industries like automotive, retail, and manufacturing, where items must be processed or delivered in a precise sequence.

SKU (Stock Keeping Unit)

A unique identifier assigned to each product or item in a warehouse. The SKU helps track inventory, manage orders, and optimise the picking process.

SSCC (Serial Shipping Container Code)

An 18-digit number used to identify logistics units. In order to automate the reading process, the SSCC is often encoded in a barcode.

Stock Rotation

A method of organising inventory to ensure that older stock is used or shipped first to reduce the risk of wastage, obsolescence, or damage.

Third Party Logistics (3PL)

Third Party Logistics or 3PL is the outsourcing of logistics and supply chain management functions to a third-party provider. These providers handle various tasks such as transportation, warehousing, inventory management, order fulfilment, and distribution on behalf of a company.

TMS (Transportation Management System)

A Transportation Management System is a software platform designed to help businesses plan, execute, and optimise the physical movement of goods. It is a critical component of supply chain management, focusing specifically on the transportation of goods.

Warehouse Optimisation

The continuous process of improving warehouse layout, inventory management, and workflows to reduce costs, improve productivity, and enhance customer satisfaction.

Work Order

A work order is an instruction for value added activities to take place. This can be anything from packing to kitting or assembling. Optional backflushing can also take place where component parts can be consumed from stock.

WMS (Warehouse Management System)

A software application designed to support the day-to-day operations of a warehouse. It helps manage inventory, streamline order fulfilment, optimise storage, and improve operational efficiency.

Zone Picking

A picking method where the warehouse is divided into multiple zones, and workers are assigned to pick items within their specific zone. Orders are completed by aggregating items picked from each zone.