Warehouse Management Glossary
A comprehensive reference of warehouse management terms, WMS terminology, and logistics concepts. Use this glossary to better understand the systems and processes that power modern warehouses.
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3PL (Third-Party Logistics)
An outsourced logistics provider that handles warehousing, fulfillment, and shipping on behalf of another company. 3PL providers rely heavily on WMS software to manage inventory across multiple clients within shared or dedicated warehouse space.
A
ASN (Advanced Shipping Notice)
An electronic document sent by a supplier to a warehouse before a shipment arrives. An ASN lists the contents, quantities, and expected delivery date, allowing the receiving team to prepare and speed up the inbound process.
B
Backorder
An order for a product that is temporarily out of stock. Backorders are tracked separately in a WMS so they can be fulfilled as soon as new inventory arrives, helping maintain high fulfillment rates over time.
Barcode
A machine-readable representation of data (typically a SKU or lot number) printed on labels and scanned during warehouse operations. Barcode scanning reduces manual errors during receiving, putaway, and picking. Learn more about barcode scanning in a WMS →
Bin Location
A specific, addressable storage position within a warehouse (e.g., Aisle 3, Rack B, Shelf 2). Bin locations allow a WMS to direct workers to exact positions for putaway and picking, improving speed and accuracy.
C
Carrying Cost
The total cost of holding inventory over a period of time, including storage, insurance, depreciation, and opportunity cost. Monitoring carrying costs helps businesses optimize inventory turnover and avoid overstocking.
Cross-Docking
A logistics practice where inbound goods are transferred directly to outbound shipping with minimal or no storage time. Cross-docking reduces handling and carrying costs but requires precise coordination, often managed by a WMS.
Cycle Counting
An inventory auditing method where a small subset of stock is counted on a rotating schedule rather than shutting down for a full physical count. A WMS can automate cycle count scheduling and flag discrepancies in real time. See how a WMS handles cycle counts →
F
FEFO (First Expired, First Out)
An inventory rotation strategy where items with the earliest expiration date are picked and shipped first, regardless of when they were received. FEFO is critical for food, pharmaceuticals, and cosmetics. Compare with FIFO.
FIFO (First In, First Out)
An inventory rotation strategy where the oldest stock (first received) is picked and shipped before newer stock. FIFO helps prevent spoilage and obsolescence. A WMS can enforce FIFO rules automatically during the picking process.
Fulfillment Rate
The percentage of customer orders that are completely shipped on time and without errors. Also called the perfect order rate. Tracking fulfillment rate in a WMS dashboard helps identify bottlenecks in picking, packing, and shipping.
I
Inbound / Outbound
The two primary flows of goods in a warehouse. Inbound covers receiving, inspection, and putaway of incoming stock. Outbound covers picking, packing, and shipping orders to customers. A WMS orchestrates both flows end to end.
Inventory Turnover
A ratio that measures how many times inventory is sold and replaced over a given period. High turnover indicates strong sales or efficient inventory management; low turnover may signal overstocking. A WMS provides the data needed to calculate and improve this metric.
K
Kitting
The process of grouping separate but related items together as a single SKU for sale or shipment. For example, assembling a gift set from individual products. A WMS manages kitting by tracking component inventory and generating pick lists for the required parts.
L
Lead Time
The total time between placing a purchase order with a supplier and receiving the goods in the warehouse. Understanding lead times is essential for calculating safety stock levels and preventing backorders.
Lot Tracking
The practice of assigning a unique identifier to a batch (lot) of products so they can be traced throughout the supply chain. Lot tracking is essential for recalls, expiration management, and FEFO compliance. Learn how BoxWise handles lot tracking →
O
OMS (Order Management System)
Software that tracks orders from placement through fulfillment. While an OMS focuses on the order lifecycle (payment, routing, status), a WMS focuses on the physical warehouse operations. The two systems typically integrate to share order and inventory data. Learn how to evaluate WMS vs. OMS →
P
Pick List
A document or digital instruction that tells a warehouse worker which items to retrieve, in what quantities, and from which bin locations. Modern WMS platforms generate optimized pick lists that minimize travel distance using strategies like wave picking or zone picking.
Putaway
The process of moving received goods from the dock to their designated bin locations in the warehouse. A WMS automates putaway by suggesting optimal locations based on product type, size, velocity, and slotting rules.
R
Receiving
The process of accepting incoming goods at the warehouse dock, verifying them against the ASN or purchase order, inspecting for damage, and logging them into the WMS. Accurate receiving is the foundation of reliable inventory data.
S
Safety Stock
Extra inventory kept on hand to buffer against unexpected demand spikes or supplier delays. The ideal safety stock level depends on lead time variability and demand forecasting accuracy. A WMS can alert teams when stock falls below safety thresholds.
SKU (Stock Keeping Unit)
A unique alphanumeric identifier assigned to each distinct product or variant in a warehouse. SKUs enable precise tracking across receiving, storage, and fulfillment. Every barcode scan in a WMS typically resolves to a SKU.
Slotting
The practice of determining the optimal bin location for each product based on factors like pick frequency, size, weight, and product affinity. Effective slotting reduces travel time during picking and improves overall warehouse throughput.
W
Wave Picking
A picking strategy where multiple orders are grouped into waves and released to the warehouse floor at scheduled intervals. Wave picking balances workload across shifts and is often combined with zone picking for maximum efficiency. Discover picking strategies in a WMS →
WMS (Warehouse Management System)
Software that controls and optimizes day-to-day warehouse operations, including receiving, putaway, slotting, picking, packing, and shipping. A modern cloud-based WMS like BoxWise eliminates the need for on-premise servers and IT overhead. What is a WMS? → | Cloud vs. on-premise WMS → | How to choose a WMS →
Z
Zone Picking
A picking strategy where the warehouse is divided into zones, and each picker is assigned to a specific zone. Items from an order are picked in parallel across zones and consolidated before shipping. Zone picking reduces congestion and travel time in large warehouses.
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