Warehousing, Distribution and Inventory
Management Terms

 

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

AIB - American Institute of Baking www.aibonline.org
The American Institute of Baking (AIB) is a not-for-profit organization that focuses on education and research for the baking and food industry. The organization performs food audits and certifications in over 70 countries, sets standards for food packaging, and conducts food and occupational safety training. It has over 700 members worldwide. The organization has offices in the UK and US. The AIB has been in existence since 1919.

B.O.L. Bill of Lading.

Cross Docking A distribution system in which merchandise received at a warehouse or distribution center is not put away, but instead is readied for shipment to retail stores. Cross docking requires close synchronization of all inbound and outbound shipments. By eliminating the put-away, storage and selection operations, it can significantly reduce the distribution costs. In pallet level cross docking, entire pallets are received from the vendor and moved directly to the outbound trucks without further handling. In case levels cross docking, cases are transferred into a conveyer system, if one is available, this routes them to the appropriate outbound staging area for delivery to the store.

DC Distribution Center.

Electronic Data Interchange (EDI)
The computer-to-computer transmission of business information between trading partners. The information should be organized in standard file formats or transaction sets following guidelines administered by the Uniform Code Counsel (UCC) for the grocery industry or the Voluntary Inter-Industry Communications Standards Group (VICS) for the general merchandise industry. Standards have been developed for all regular business-to-business communication including, purchase orders, invoices, shipping notices and funds transfers. By eliminating the clerical, mailing and other costs associated with paper based information; EDI reduces cost, time delays and errors.

FIFO First-in, First-out. Refers to inventory.

I W L A - International Warehouse Logistics Association www.iwla.com
I W L A is a unified voice of the logistics outsourcing industry, representing third party warehousing, transportation and logistic service providers. Our 500 member companies provide the most timely and cost-effective global logistics solutions for their customers and are committed to protecting the free flow of products across international borders.

ISO 9001:2000 - The International Organization of Standardization
ISO is a set of standards for quality management systems that is accepted around the world. Currently more than 90 countries have adopted ISO 9000 as national standards. When you purchase a product or service from an organization that is registered to the appropriate ISO 9000 standard, you have important assurances that the quality of what you receive will be as you expect. In addition with the year 2000 revision of the standard, quality objectives, continual improvements, and monitoring of customer satisfaction provide the customer with increased assurance that their needs and expectations will be met.

The standard intended for quality management system assessments and registration is ISO 9001. The standards apply uniformly to organizations of any size or description. Many companies require their suppliers to become registered to ISO 9001 and because of this, registered companies find that their market opportunities have increased. In addition, a companies compliance with ISO 9001 insures that it has a sound quality management system, and that's good business.

Inventory Turn The Rate of speed that an inventory is moving through a companies business, definable by units or dollars.

LIFO Last-in, First-out. Refers to inventory.

Logistics Logistics is the part of the supply chain process that plans, implements, and controls the efficient, effective flow of storage and goods, services, and related information from the point of origin to the point of consumption in order to meet customers' requirements.

Out-side Storage The use of a supplemental inventory storage location to handle excess inventory, sometimes refers to 3rd party public warehousing.

Outsourcing The external purchase of products and/or services from other firms in the supply chain. Strategic alternative to vertical integration.

Reverse Logistics Reverse Logistics is the processing of returning merchandise from the customers customer. This process includes matching RGA's (return goods authorization identifications), sorting salvageable, repairable and non-salvageable inventories. (click on Reverse Logistics for diagram).

Shipment Status Information on the location and expected time of arrival of a shipment.

Slip Sheet A paper pallet. Most of the time special equipment is needed to handle the product.

Staging of Product Product has been picked and scanned out of inventory and has been placed in specified area, awaiting pickup.

Stock Keeping Unit (SKU) An individual color, size, flavor, or pack of products that require a separate code number to distinguish it from other items.

Supply Chain The entire fulfillment process from procurement of raw materials to consumer purchase.

Third Party An independent organization that offers a service that links a supplier and distributor in some way; the term can be applied to warehousing or logistics.

Transit Time Time involved from carrier pick up until the time the freight is delivered.

Transportation / Warehousing Business functions to store, receive, ship and deliver product.

Truckload (TL) Shipments of more than 10,000 pounds loaded on a truck.

Uniform Code Council (UCC) The nonprofit administrative and educational organization that works with U.S. and Canadian industry to develop and administer product identification and electronic data interchange standards, including U.P.C. and UCC/EAN Code 128.

Universal Product Code (U.P.C.)
A numbering and bar coding system for product identification of consumer items, typically scanned at the retail point-of-sale.

Value-added Services Activities or processes not typically considered part of the firm's basic service package that are offered to key customers.

Vendor A supplier of products or services.

 

 

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