Warehouse Operations. In meeting with many warehouse managers and. When we talk about running an efficient warehouse operation, the receiving process is imperative. The proper receiving of goods will have a direct impact on all subsequent warehouse processes. The objective is for them to present the cargo in a way that is quick and easy to process. Another problem is drivers not having all documentation in hand when they arrive to the receiving area.
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Warehouse DictionaryVIDEO ON THE TOPIC: How Amazon Receives Your Inventory
Download this warehouse and distribution center terminology dictionary here: Download. Warehouse Management System. Cold Storage. Search for:. Warehouse Dictionary. Packing thru Put Away. Looking for warehouse management terminology?
Look no more. P Packing The process of preparing a container for shipment. Packing List A document containing information about the location of each Product ID in each package. It allows the recipient to quickly find the item he or she is looking for without a broad search of all packages. It also confirms the actual shipment of goods on a line item basis.
Pallet The platform which cartons are stacked on and then used for shipment or movement as a group. Pallets may be made of wood or composite materials.
Pallet picking Retrieval of full pallets of cartons, or layers of cartons from a pallet a. Parcel Manifest System Automated shipping system. Part Standardization A program for planned elimination of superficial, accidental, and deliberate differences between similar parts in the interest of reducing part and supplier proliferation. A typical goal of part standardization is to reduce costs by reducing the number of parts that the company needs to manage.
Parts list a listing of material required for a production order. The manufacturing planning system will use the bill of materials to calculate the material requirements for a manufacturing order, resulting in the parts list also called a materials list.
Parts lists can also be created or edited manually. Pay on Use Pay on use is a process where payment is initiated by product consumption, i. This process is popular with many European companies. Payment terms an agreement between a supplier and customer that describes how and when payment will be made for products or services. Peak Demand The time period during which customers demand the greatest quantity.
Peer to Peer P2P A computer-networking environment which allows individual computers to share resources and data without passing through an intermediate network server.
Pegging A technique in which a DRP system traces demand for a product by date, quantity, and warehouse location. Using this information to identify causal relationships to suggest actions in line with the business goals.
Performance Measures Indicators of the work performed and the results achieved in an activity, process, or organizational unit. Performance measures should be both non-financial and financial.
Performance measures enable periodic comparison and benchmarking. Performance Measurement Program A performance measurement program goes beyond just having performance metrics in place. Periodic review methods approaches to inventory control that place orders of variable size at fixed intervals of time Perpetual Inventory An inventory record keeping system where each transaction in and out is recorded and a new balance is computed.
Physical Inventory the process of counting all inventories in a warehouse or plant in a single event. Also called a wall-to-wall inventory.
Physical Supply The movement and storage of raw materials from supply sources to the manufacturing facility. Pick conveyor A non-powered conveyor e. Picking The operations involved in pulling products from storage areas to complete a customer order. Picking by Source A method in which pickers successively pick all items going to a particular destination regardless of the aisle in which each item is located.
Pick List A list of items to be picked from stock in order to fill an order; the pick list generation and the picking method can be quite sophisticated. Pick Sequence The location travel sequence when picking items.
Pick to Light A laser identifies the bin for the next item in the rack; when the picker completes the pick, the barcode is scanned and the system then points the laser at the next bin. Pick-Up Order A document indicating the authority to pick up cargo or equipment from a specific location. Transportation creates place utility. Planned Date The date an operation such as a receipt, shipment, or delivery of an order is planned to occur.
Planned order receipt term used within MRP and DRP systems to describe the date a planned order must be received in order to fulfil net requirements. Planned order release term used within MRP and DRP systems to describe the date a planned order must be released in order to meet the lead time.
It is essentially the planned order receipt date offset by the lead time. Plant Finished Goods Finished goods inventory held at the end manufacturing location. Point of Use Delivery Delivery right to the production floor of an item. Poka Yoke mistake proof The application of simple techniques that prevent process quality failure. A mechanism that either prevents a mistake from being made or makes the mistake obvious at a glance. Pooling A shipping term for the practice of combining shipment from multiple shippers into a truckload in order to reduce shipping charges.
Port A harbor where ships will anchor. Port Authority A state or local government that owns, operates, or otherwise provides wharf, dock, and other terminal investments at ports.
Port of Discharge Port where vessel is off loaded. Port of Entry A port at which foreign goods are admitted into the receiving country. Port of Loading Port where cargo is loaded aboard the vessel. Portal A web site that serves as a starting point to other destinations or activities on the Internet. Initially thought of as a home base-type of web page, portals attempt to provide all Internet needs in one location.
Portals commonly provide services such as e-mail, online chat forums, shopping, searching, content, and news feeds. A strategy used to eliminate excess inventory in the form of finished goods which may be packaged in a variety of configurations. Pre-Expediting The function of following up on open orders before the scheduled delivery date to ensure the timely delivery of materials in the specified quantity.
Prepaid A freight term which indicates that charges are to be paid by the shipper. Prepaid shipping charges may be added to the customer invoice, or the cost may be bundled into the pricing for the product. Prepaid Freight Freight paid by the shipper to the carrier when merchandise is tendered for shipment that is not refundable if the merchandise does not arrive at the intended destination.
Private Carrier A carrier that provides transportation service to the firm that owns or leases the vehicles and does not charge a fee. Private motor carriers may haul at a fee for wholly owned subsidiaries. Private Label Products that are designed, produced, controlled by, and which carry the name of the store or a name owned by the store; also known as a store brand or dealer brand.
Private Trucking Fleets Private fleets serve the needs of their owners, and do not ordinarily offer commercial trucking services to other customers. Private fleets typically perform distribution or service functions. Private Warehousing The storage of goods in a warehouse owned by the company that has title to the goods. Process A series of time-based activities linked to complete a specific output.
Process Benchmarking Benchmarking a process such as the pick, pack, and ship process against organizations known to be the best in class in this process. Process Improvement A design or activity which improves quality or reduces costs, often through the elimination of waste on non-value-added tasks. Procure-to-order an inventory strategy where you do not procure your product until after you receive actual orders from your customers.
Procure-to-stock an inventory strategy where you must carry adequate finished goods inventory to meet upcoming forecasted demand. The reason this stocking strategy is so common is not that it is the most cost-effective inventory strategy overall, but rather it is a necessary strategy when market conditions require shipment of goods quicker than you can procure them.
Procurement The business functions of procurement planning, purchasing, inventory control, traffic, receiving, incoming inspection, and salvage operations.
Product Family A group of products with similar characteristics often used in production planning or sales and operations planning. Product ID A method of identifying a product without using a full description. These can be different for each document type and must, therefore, be captured and related to the document in which they were used.
Product life cycle the period of time in which a specific item is considered an active saleable item. Product life cycle starts when a product is first introduced, and ends when a product is removed from active status. Some definitions of product life cycle may also include the development time for a product. Production Capacity Measure of how much production volume may be experienced over a set period of time. Production Line A series of pieces of equipment dedicated to the manufacture of a specific number of products or families.
Production order the document used to process a production run of an item. Also known as a job, work order, or manufacturing order, a production order is usually made up of a production order header, a parts list, and a routing. Production Planning and Scheduling The systems that enable creation of detailed, optimized plans and schedules, taking into account the resource, material, and dependency constraints to meet the deadlines.
Production-Related Material Production-related material is an item classified as a material purchase and included in cost-of-goods sold as a raw material purchase. Productivity A measure of resource utilization efficiency defined as the sum of the outputs divided by the sum of the inputs. Profit Ratio The percentage of profit to sales—that is, profit divided by sales. Profitability Analysis The analysis of profit derived from cost objects with the view to improve or optimize profitability.
Multiple views may be analyzed, such as market segment, customer, distribution channel, product families, products, technologies, platforms, regions, manufacturing capacity, etc. Pro-forma A type of quotation or offer that may be used when first negotiating the sales of goods or services. If the pro-forma is accepted, then the terms and conditions of the pro-forma may become the request.
Pro Forma Invoice An invoice, forwarded by the seller of goods prior to shipment that advises the buyer of the particulars and value of the goods. Usually required by the buyer in order to obtain an import permit or letter of credit.
Jul 25, Warehouse 26 comments. Are all warehouses the same? Short answer: no, but yes! This phrase is used widely in Thailand to explain to naive tourists such as myself the similarities between one product and another.
6. Warehousing and storage
Below are some of the terms, acronyms, and abbreviations you may run into on this site and others on the web relating to inventory operations. The definitions are based on my understanding of the terms and may differ from others opinions. If you disagree with a definition or have additional definitions to submit please email me at email inventoryops. Content on InventoryOps. E-consulting options are available.
50 Expert Tips on How to Organize Your Warehouse More Efficiently
This sentiment holds especially true for organizations who rely on warehouse staff or automated equipment to fulfill orders. E-commerce behemoths such as Amazon have forever changed the perception of how orders should be fulfilled, both in terms of time and accuracy. But, while your company might not be promising same-hour delivery , these changing expectations are not to be ignored— in fact, they should be shaping your ever-changing warehouse order picking strategy. Warehouse order picking is a simple concept, but in practice, picking processes can be complex. For instance, if your competitors are undercutting you in terms of fulfillment time or you have received public online complaints concerning order accuracy from customers, the first factor you need to reassess is your warehouse order picking process. Selecting an overarching plan from the most used categories below will help you to develop a framework if you are reworking your current order picking plan — or even starting from scratch:. In addition to the five most common picking types, many companies will combine two or more to better fit the unique needs of their warehouse.
Download this warehouse and distribution center terminology dictionary here: Download. Warehouse Management System. Cold Storage. Search for:. Warehouse Dictionary. Safety Lead Time thru Synchronization. Looking for warehouse management terminology? Look no more.
The ultimate guide to warehouse order picking
While some may first think that these buildings have the simple task of storing materials before their export or distribution for sale, a proficient warehouse system is way more multifaceted than that. Warehousing is a process that involves scientific methods to handle goods and cargo, and make them conveniently available whenever they are needed for shipment. Check out the top 15 characteristics of an efficient warehouse, below.
Storage may be short-term for goods in transit or long-term to accumulate working stock that can be used for long-range planning and distribution, or used as a contingency. The stock in the warehouse acts as a regulating buffer between supplies stock entries that are normally intermittent and needs stock deliveries that are normally regular or unexpected emergency. Stock management involves managing an appropriate level of stock in the warehouse for regular needs as well as a certain level of supplies in case of emergencies. Stock has a cost-the price of items plus the warehousing charges rent, human resources and materials. A good stock management system requires the right balance between costs and response to need. The decision to create stock depends on several factors. First, you have to balance the benefit of holding stock against the cost of doing so. Second, you need to think about:. Items with a fast turnover, in terms of consumption, need good planning. Variations such as monthly consumption, delivery lead time time period between accepting an order and the actual delivery of that order , expiry date if applicable and destination what is going where need to be monitored closely.
Spotlight on: 7 Key Warehouse Processes
Warehouse managers know all too well that the task of managing operations for a warehouse facility is far from straightforward. Add ensuring profitability and minimizing overhead and labor costs to the mix, and warehouse operators have their work cut out for them. While categorized by topic, please note that the following best practices are not otherwise rated or ranked in any particular order of importance. To jump to a specific section, use the links in the table of contents below. Use automatic data collection. The benefits of automatic data collection—via bar code and radio frequency identification—are well-established, including increased productivity and accuracy and lower labor costs. Promote information visibility company-wide. Another respondent points to visibility as a means to improvement. Asset tracking paired with a warehouse management system WMS provides the automation necessary to maximize warehouse productivity.
The Five Essential Methods for an Efficient Warehouse Operation
Conveyor Handling Company offers a wide variety of dock equipment and accessories for your warehouse including pallet jacks, levelers, seals, shelters, doors, lights, ramps, bumpers, and restraints; and provides installation services for any equipment attached to your building. Move heavy loads up to 6, lbs. Handle includes a three-position raise, lower, neutral lever for fingertip control and one-hand operation. Innovative designs for both integrated and edge of dock levelers are available. Truck restraints help to maximize loading dock safety and productivity. Dock seals and shelters are designed to reduce energy loss, theft, product damage and insect infiltration.
Warehouses play a key role in the supply chain. Effective warehouse design certainly encompasses layout and space optimization, but it also includes warehouse labeling and racking , warehouse management software systems and technology, and designated picking and receiving areas. Warehouses that are clean and well organized are ready to receive merchandise, prepare orders, load and ship containers, and keep customers happy. Unfortunately, organizing a warehouse efficiently is easier said than done.
Material handling is a far-reaching concept in supply chain management. A warehouse has a lot of moving parts. For better or for worse, it impacts production flow, employee safety, and employee morale. That said, understanding material handling systems and implementing best practices significantly improves the function of your warehouse.
Download this warehouse and distribution center terminology dictionary here: Download. Warehouse Management System. Cold Storage.
SATO seeks to ensure the smooth and efficient flow of products and information from goods receipt to inventory management and shipping, as well as effectively managing the returns process, where required. SATO saves business time, cost and waste through enhanced visibility, productivity and efficiency. Continual monitoring and visibility of goods, integrated into each operational area and business function, supports businesses to drive efficiency, productivity and streamline operations. With customer compliance and profitability at the forefront of SATO solutions, SATO designs agile, flexible smart solutions to support businesses from goods receipt to inventory management and shipping, as well as effectively managing the returns process, where required.