Warehousing & Fulfillment Glossary
Clear definitions of warehousing, fulfillment, and logistics terms. Written by warehouse operators, not academics.
B
Batch Picking
Batch picking is a fulfillment method where a single picker collects items for multiple orders in one trip through the warehouse.
BOL (Bill of Lading)
A Bill of Lading (BOL) is a legal shipping document that serves as a contract between a shipper and carrier, detailing the shipment contents, weight, destination, and terms.
C
Cost Per Order
Cost per order is a metric that totals all expenses associated with fulfilling a single customer order, including labor, materials, shipping, and overhead allocation.
Cross-Docking
Cross-docking is a warehousing strategy where incoming goods are quickly unloaded from incoming shipments and transferred directly to outgoing shipments with minimal storage time.
Cycle Counting
Cycle counting is an inventory verification method where a subset of inventory is counted regularly (weekly, daily, or continuous) rather than conducting a full physical inventory once per year.
D
Dead Stock
Dead stock refers to inventory that has not sold in a long time and is unlikely to sell in the future.
Dock-to-Stock Time
Dock-to-stock time is the duration from when a shipment arrives at the warehouse dock until inventory is fully received, verified, put away, and available for order picking.
P
Pallet Position
A pallet position (or pallet slot) is a single space in a warehouse where one pallet can be stored.
Pick and Pack
Pick and pack is a fulfillment process where warehouse workers pick items from shelves based on an order list, then pack them into a shipping box.
Put-Away
Put-away is the warehouse process of moving received inventory from the receiving dock to its assigned storage location in the warehouse.
R
Receiving
Receiving is the warehouse process of inspecting, documenting, and accepting incoming inventory shipments.
Returns Processing (Reverse Logistics)
Returns processing, also known as reverse logistics, is the process of handling merchandise returned by customers.
S
Safety Stock
Safety stock (or buffer stock) is extra inventory held above the forecasted demand to protect against demand variability, supply chain disruptions, or forecasting errors.
SKU (Stock Keeping Unit)
A Stock Keeping Unit (SKU) is a unique alphanumeric code assigned to each distinct product or variant in inventory.
Slotting
Slotting (or slot optimization) is the process of strategically assigning inventory locations within the warehouse to minimize picking time and distance.
W
Wave Picking
Wave picking is an order fulfillment strategy where orders are grouped into waves (batches) and picked together rather than individually.
WMS (Warehouse Management System)
A Warehouse Management System (WMS) is software that controls and optimizes warehouse operations including inventory tracking, picking, packing, shipping, and receiving.