Supply Chain Terminology

Effective communication with warehouse staff and others in the supply chain is essential when working with a warehouse. Understanding common terminology in the industry can significantly enhance this communication. To assist with this, Lansdale Warehouse has created a glossary of 15 frequently used supply chain terms.

1. Third-party logistics (3PL) encompasses the outsourcing of a range of logistics and distribution functions to an external provider. These functions can include, but are not limited to, transportation, warehousing (storage and inventory management), order fulfillment (picking, packing, and shipping), and other value-added services.  3PL providers similar to Lansdale Warehouse can also offer scalability and flexibility to accommodate fluctuations in demand and support business growth.
2. WMS (Warehouse Management System): A WMS is a software solution designed to optimize and manage all aspects of warehouse operations, from inventory management to order fulfillment.  Lansdale Warehouse’s WMS primary function is to optimize workflow from the moment goods are received and stored to the point when they are picked, packed and shipped to final destination.
3. Advance Shipping Notice (ASN): An Advance Shipping Notice (ASN) is a crucial document in the logistics and supply chain management process. It serves as notification sent by a supplier to a customer, providing detailed information about an upcoming shipment. This comprehensive notice includes critical data such as the estimated time of arrival (ETA), a complete list of the items included in the shipment, and the exact quantity of each item.
4. Barcode: A barcode is a machine-readable optical label that contains data about the item to which it is attached. Barcodes are read by Lansdale Warehouse optical scanners (RF scanners),  which translate the barcode’s encoded information into a digital format. This digital data can then be used for a variety of purposes, such as tracking inventory and managing product information.
5. Batch Picking: Batch picking is a warehouse efficiency method where workers pick items for multiple orders simultaneously in a single pass through the warehouse. Lansdale Warehouse uses this technique to optimize the picking process increasing the number of orders fulfilled.  
6. Bill of Lading (BOL): A bill of lading is a legal document issued by a carrier to a shipper, serving as a receipt, contract, and document of title for the goods being transported. It specifies the type, quantity, and destination of the goods.
7. Cross-Docking: Cross-docking is a strategy used to optimize the supply chain by expediting the flow of goods. It involves the direct transfer of incoming shipments to outgoing transportation, bypassing the traditional storage phase in a warehouse. Lansdale Warehouse’s cross dock operation minimizes handling, reduces inventory holding costs, and accelerates delivery times.
8. Receiving: The initial step in warehouse operations, involving the acceptance, inspection, and processing of incoming goods.  Lansdale warehouse receiving process is essential for maintaining inventory accuracy and ensuring customer satisfaction.
9. Putaway: Put away is a core warehouse activity used by Lansdale Warehouse that involves storing incoming goods in their designated storage locations within the warehouse facility. 
10. Order: A specification of the types, quantities, and desired delivery schedule for goods or services, requested by a customer.
11. FIFO (First In, First Out): Is an inventory management principle where the oldest stock (first in) is prioritized and picked first (first out). This method ensures that products don’t become outdated, expire, or deteriorate while sitting in storage. 
12. SKU (Stock Keeping Unit): A unique identifier for each distinct product or item in inventory.
13. Kitting: Kitting is the process of taking individual items and combining them into a single package or kit. Lansdale Warehouse does kitting for a specific purpose such as to create a bundled product for our customer or to prepare items for shipment.
14. Cycle Counting: Cycle counting is an auditing technique where a small subset of inventory is counted on a regular schedule, rather than performing a full inventory count.  Lansdale Warehouse cycle counting programs are tailored to customer needs.
15. ABC Analysis: The method used by Lansdale Warehouse cycle counting and for categorizing inventory based on importance:

1. A items: High-value, low-quantity.
2. B items: Moderate-value, moderate-quantity.
3. C items: Low-value, high-quantity.