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Glossary of Material Handling Logistical Terms L-Z


Glossary of Logistical Terms

 

L

 

Labels - Labels are pre-printed and pre-affixed labeling tags installed by the manufacturer. 

Layout - Design and set-up of warehouse storage.

Less Than Container Load (LCL) - A shipment weighing less than the required weight to qualify for a full container rate. When the shipment is less than a full container load, the freight may be calculated as an LCL shipment.

Less Than Truckload (LTL) - Shipments weighing less than required for the application of a truckload rate. A typical full truckload shipment is 39,000 – 44,000 pounds. Weight breaks may vary across LTL classifications and in some instances it is less expensive to apply a full truckload rate even thought the shipment size may be less than 39,000 – 44,000 pounds.

Leveler - A dock plate that adjusts to the height of a trailer.

License Plate Number - Otherwise known as an “LPN,” this is a number used to identify products and containers.

LIFO (Last In, First Out) - Inventory allocation method that selects newest inventory first.

Lift Truck - A vehicle that is utilized to move and transfer product/freight in a distribution center, warehouse, terminal, manufacturing site, or dock. A lift truck is commonly referred to as a fork lift.

Live Rack - Slanted rack that allows for easier picking. Items are put into the high end of the rack and then picked from the low end. This is desirable for FIFO picking procedures.

Load - The product that is picked and loaded onto a truck and transported to a consignee.

Location - Each product has a specific location in the warehouse.

Location Audit - Routine audit of location records to ensure that records are compatible with actual placement of product within the warehouse.

Locator System - Locator systems allow for more effective inventory-tracking. Product can be stored in a way that makes sense for the warehouse, such as high demand product in more accessible locations. Locator systems assist in better accuracy with inventory tracking and control as well because it is all computerized.

Logistics - The processes and services associated with planning and implementing flow of storage and shipments in a 3rd Party operation required meeting the customers’ needs in an efficient manner.

Loose - Product remainder in a specific location or layer.

Lot - A group of products with the same run date or manufacturing date.

Lot Number - Identification number assigned to specific product for tracking purposes that is usually tied to a date or a production run.

Lot Number Traceability - The ability to trace items through a lot number. This is helpful when a specific product is needed or information about a specific product is required.

LTL, Less-Than-Truckload - Transportation term that describes shipments that are less than a trailer load. LTL also is used to describe the carriers that handle these loads. LTL carriers generally use strategically placed hubs to sort and consolidate LTL shipments into full-truck-load shipments.

Lumper - A contracted worker who assists in the loading and unloading process.

 

M

 

Manifest - A document that lists all of the products being transported; used when loads are combined. 

Master Carton - A large carton that is used to hold and protect smaller cartons or packages of product. Using a master carton reduces handling as one larger piece instead of multiple small pieces.

Master Pack - A carton containing a specific number of product or multiple case quantities.

Material Handling - The services and processes the warehouse must utilize to move store and otherwise handle materials.

Man Up - Lift trucks that raise the operator as well as the load. Two types of man-up lift trucks are turret trucks and order selectors.

Motorized Pallet Truck - There are two different types of motorized pallet trucks, the “Walkie” and the “Rider.” The “Walkie” is built so that the operator can walk alongside it. The “Rider” is built so that the operator can stand and ride on the truck.

 

N

 

Narrow Aisle (NA) - Specialized lift trucks designed to be used in narrow aisles of 8 to 10 feet.

Net Storage Area - Space in the warehouse (in square feet or meters) that is actually used for storage. This does not include aisles, docks, offices and staging areas.

Net Weight - Product weight before being packed with materials or packaging. The total weight of the product with deduction for tare and packaging costs.

 

O

 

Obsolete Stock - Stock that has no useable purpose that remains in the warehouse.

On-Hand Inventory - The amount of product in the warehouse. The product may be designated as shippable, damaged, on hold, or pending shipment (allocated to an order).

On Hold - Refers to product that is designated as unable to be shipped; may be product with damage, questionable quality, expired shelf life, etc.

Order - A directive, sent by the owner of the goods, to ship product out of the warehouse. An order specifies product, quantity, shipping date, and destination and may contain special instructions.

Order Cost - The cost of labor, time, and other activities needed in an instance that a product is ordered.

Order Cycle - Based on demand and frequency for orders of specific product, the order cycle is a replenishment cycle that determines how often a product needs to sent as an inbound to the warehouse in order to keep up with demand.

Order Selector  - Also known as an order picker, an order selector is a specialized lift truck that allows a person to ride on it with the pallet in order to pick from various locations and levels.

O,S,&,D - Over, Short and Damage; it refers to the condition of a load of product which arrives in a defective condition, or whose quantity does not match the bill of lading (cases over or short).

OSHA - Occupational Safety & Health Administration, a branch of the US Department of Labor.

Overage - When more has shipped on a load than was intended or was indicated on the BOL.

Over the Road Carrier - A truck or trailer used in hauling freight by road to destinations outside a 70 mile radius.

 

P

 

Packing List - The packing list is created in the Distribution Center. The packing list identifies the quantity and weight of each product on the order and each individual item # (unit ID, serial number, etc.) if applicable. It is a comprehensive list identifying exactly what is being shipped on the order.

Pack Size - Describes how a product is packaged such as “20 cartons per pallet” or “6 units per carton”.

Pallet - A wooden or plastic base upon which layers of product are stacked for storage and transporting with a forklift or pallet jack.

Pallet ID - The bar code tag that is placed on a pallet for tracking purposes.

Pallet Inverter - A machine that aids in the transfer of products from one pallet to another. The pallet inverter flips over the pallets and product in order to put the product on the new pallet and take off the old.

Palletize - To put materials and product onto a pallet.

Pallet Jack - Material handling equipment consisting of pallet forks on small wheels that are used in the warehouse to move cases of product. 

Pallet Tag - Refers to the bar code sticker placed on a pallet of product.

Paper Roll Clamp - Designed specifically for the handling of large paper rolls, the paper roll clamp is a lift truck attachment that clamps around the roll and also allows for a full 360 degree rotation.

Partial - Less than a full pallet of product.

Perpetual Inventory System - A continuous inventory tracking method where inventory taken out is recorded with each outbound order and new inventory is recorded with each inbound order.

Physical Inventory - A physical count of everything in a warehouse.

Pick/Pack - A warehouse operation that involves picking individual items from cases and putting them together a carton or pack for shipment.

Picker - The person in charge of picking specific stock for orders.

Picking - Picking is the movement of stock from a storage area to a staging area. The Fork Lift / Clamp Operator will “pick” the stock which is assigned to a particular order.

Pick Ticket - The Pick Ticket is a document used by the Forklift / Clamp Operator or picker in the Distribution Center who will be locating the stock for the order. The Pick Ticket contains information such as, product location, quantity, lot numbers, serial numbers or unit numbers.

Pick Time - The time it takes to pick and document specific stock for an order.

Pick Slot - Location in warehouse where dedicated stock is stored. 

Pick To Clear - Warehouse picks from locations with the least amount of product on hand in order to clear the area.

Pick To Light - Used in high volume piece picking, technique where pickers are directed to product by lights.

Piggy Back - The process of transporting a trailer on a railroad flatbed; the trailer is then hauled to its final destination by truck.

Pig - A type of trailer that can be transported on a rail car and also pulled by truck.  

Pinwheel - Pin wheeling is a process of arranging pallets on a truck or product on a pallet to make the best use of space when dealing with items of different sizes.

Plugging - Plugging is a method of switching direction, stopping, or slowing down without using a break on electric industrial vehicles.

P.O.D. - Proof of Delivery; a signed bill of lading.

Pool - A combination of less than truckload (LTL) freight built to form a full or almost full truckload. By “sharing” space in a vehicle, the client and Nexus can minimize cost.

Private Warehouse - Warehouse that is operated by the owner of what is being stored inside of it.

Product Code - A series of unique characters issued by the manufacturer to identify each of its products. This is usually the SKU.

Pro Number - A number assigned to a shipment by the carrier for tracking purposes.

Push Back Rack - A rack system that pushes stored product up an inclined ramp in order to provide for deep pallet storage.

Push Sorter - Device used with conveyer systems, a push sorter moves product on the conveyer using a stationary device with an arm that can push and sort.

Put To Light - Similar to pick to light. Lights are used to guide which container the picked item is to be put into.

Public Warehouse - A storage business that provides the use of space for storage to a variety of clientele. This space can be leased for varying amounts of time determined by the contract set by both parties.

Put Away - Movement of stock from the time it is unloaded to the time it is put in its final location.

 

Q

 

Quality Assurance, Quality Control - The inspection of product as it comes in or goes out of the warehouse in order to ensure quality.

Queue time - Amount of time before set-up or processing of a job.

 

R

 

Rack - Metal framework in the warehouse used to store products several levels high.

Radio frequency (RF) - A data system made up of devices that use RF to transmit information into a host system from different locations or from “on the job.”

Ramp - Inclined area that connects to the warehouse to facilitate easier movement in and out of the warehouse by trucks and other equipment.

 

Rate Sheet - A schedule of warehouse or transportation charges for a client.

RDC - Retail Distribution Center which replenishes to stores.

Reach Truck - The reach truck is a narrow-aisle (8”-10”) lift truck specially designed for racked pallet storage. It is also known as a stand-up reach, straddle reach, or double-deep reach. The reach truck is designed with outriggers in front and telescoping forks controlled by a hydraulic mechanism. This mechanism allows you to pick up the load and pull it back over the outriggers in order to reduce the overall truck and load length. It is helpful for turning down a narrow aisle. The reach truck has a mechanism that allows for extended reach in order to store pallets two-deep in a double deep rack.

Real Time - Information is updated and saved instantaneously.

Receiving Report - A record of the condition of all inbound stock as it is checked in on arrival.

Receiving Tally - A list of all the inbounds received in an effort to ensure accuracy.

Recurring Storage - An amount charged to a client for monthly storage; it is based on the amount of product stored in the warehouse on the first day of the month or specified by the contract.

Refrigerated Warehouse - Temperature controlled warehouse that serves well for storage of food and other perishable products.

Release - Authorization to ship.

Re-Order Point - Inventory reaches a specific point based on demand where it is set for replenishment.

Repack - Packaging material differently than how it arrived. Example: making a pallet of 60 cartons into 3 pallets of 20 cartons.

Replenishment - Refilling of a picking location.

Return Authorization - Permission given to a carrier or consignee to return product to Nexus.

Return Authorization Number - This is usually a number supplied by the client authorizing the return of product from a consignee to Nexus (i.e. RPC or RMA).

Reverse Logistics - The logistics needed to plan return of product or a load. This may include a return order, transportation, and put-away.

RF - Radio Frequency scanning and transmission of data.

RF Gun - A hand-held radio frequency terminal with a screen, a keypad, and a scanner that is used by warehouse personnel to scan pallet tags and location tags.

RFID, Radio Frequency Identification - An alternative to barcodes, an RFID is a device on an object used to transmit data to an RFID receiver. 

Roller Conveyor - Conveyers that uses rollers to move product either by gravity or by automation.

 

S

 

Safety Stock - Used to ensure availability of stock in case of deviations in supply or demand. These are calculated by using past deviations. To determine the optimal safety stock level, a required service level multiplier is needed.

SCAC - Standard Carrier Alpha Code; a unique 2 to 4 letter code assigned to transportation companies for identification purposes. SCAC codes are required for EDI, and are printed on bills of lading and other transportation documents.

Scheduling - Logistics involves daily shipments of stock into and out of the Nexus Distribution Centers. There are a limited number of docks / doors where outbound vehicles can be loaded and inbound vehicles unloaded. There also may be limited people and equipment to handle these tasks. 

Serial Number - Number assigned to a single item in order to identify and differentiate it from others.

Shipment - Freight that is transported from one location, such as a regional distribution center (RDC) or manufacturing site, to another, such as a consignee.

Ship To - Delivery address for the consignee.  

Shrinkage - Reduction in inventory measurement (often referred to as a result of loss or theft).

Shuttle - A load transported from one customer-related facility to another; does not include product shipped to a consignee.

Skate Wheel Conveyor - Conveyer that moves product using wheels.  

SKU (Stock Keeping Unit) -A number (product code) assigned to a single item or items by the manufacturer.

Slip Sheet - A sheet of cardboard on which product is stacked; used instead of a pallet.

Slip Sheet Attachment - An attachment to the front end of a forklift that is used to handle product on a slip sheet.

Slotting - Approach used to determine the best placement and locations for products in the warehouse depending on its dimensions and how often the item is picked.

Soft Allocation - Initial allocation of inventory to an order which will commit the inventory but, not specifically pull it from a certain inventory lot.  

Split Shipment - A partial shipment where the remainder of the order is on backorder and the warehouse cannot fulfill the entire request.

Spot - To place a trailer in a designated location or warehouse door.

Spot Check - Inspecting a sampling of containers in a shipment to determine if the quality of the entire shipment.

Spotting Horse - A specialized tractor used only to move trailers around the warehouse facility and place them at doors where they can be loaded or unloaded.

Stack Height - The number of pallets rolls & skids that can be safely stacked on top of each other; the client supplies this information.

Stacking - Placing stock on top of other merchandise in order to more efficiently use space.

Staging - The process of getting product from its storage area and placing it near the loading area for later shipment; or in cross docking, the process of unloading product and organizing it for immediate shipment.

Staging Area - A designated area of the warehouse near the loading dock where product is placed or arranged for shipment.

Stencils - Stencils are markings placed on the product with the ID information required by the customer for the product that they are receiving. This can be in different forms dependent on the specifics for the customer. It can be a label or just a chalk inscription with the product ID.

Stretch Wrap - Clear plastic film that is wrapped around a pallet of product to secure it.

Stock Allocation - When the “computer looks for and allocates stock”, it checks to see if it is available. Available stock can be used to fill the orders. When an order is input, the system will automatically look for available stock and allocate the stock to the particular order.

Stock Rotation - Way of prolonging shelf-life by moving or replacing product in a warehouse.

Storage Charge - Charge to client for holding stock that has not moved.

Storage Rate - Charge to client for all storage costs, usually on a month-to-month basis.

Strap Loading - Product is loaded onto a pallet and then secured with strapping.

Strapping - Belt used for securing goods on a pallet. Strapping can be metal or plastic.

 

T

 

Tag - A way to recognize a shipment or particular item.

Tally - A count performed when shipments are received in order to track and record their condition.

Tare - The weight of the wrapping holding the goods. For rolls, the tare consists of fiber core and the wrap. For pallets, the tare consists of the pallet and the wrap. The tare is the difference between the net weight and gross weight.

Terminals - Break points for carriers to strategically reload freight for delivery to the final destination.

Third Party Warehouse - Warehouse operated by a 3PL Company that houses the products of their clients.

Throughput - Method of calculating average product movement.

Tie - Units per Layer

Trailer - An enclosed vehicle, towed by a truck, which is used for transporting product. 

Tractor - The truck that pulls a trailer.

Transaction Set - A group of data elements that represent the information on a business document, like a shipment order, and which are transmitted through EDI.

TMS, Transportation Management System - System used by the transportation department which aids in such tasks as manifesting shipments, finding rate quotes, and managing carriers.

Traceability - Ability to track a shipment from the time it leaves the warehouse until the time it arrives at the consignee.

Trackable - Total quantity of weight, space, and pallets.

Transportation Tariff - A document published by a carrier that describes charges for transportation between 2 or more points, and contains other terms and conditions governing the transportation activity.

Truck Door - Area in the warehouse that is used to accommodate the loading and unloading of trailers.

Turret Truck - Type of man-up lift truck with a rotating fork that can turn 90 degrees in either direction.

 

U

 

Unitization - To take individual items and ship them as a single larger item.

Unit Load  - Otherwise known as a unitized load, a unit load is any arrangement of materials that are moved by material handling equipment, such as a lift truck, as a single unit (example: palletized loads).

Unit of Measure (U/M) - The type of measurement unit used to track inventory such as pallets (individual units) in your system.

Unit of Measure Conversions - Necessary when working with multiple units of measures such as pallets and eaches. Require a conversion such as eaches per pallet in order to make the load uniform.

Uprights - Vertical numbers used in the storage rack for identification purposes.

 

V

 

Value Added - Value is added to the distribution process when there is a contribution made to the functionality, value, or usefulness of a product.

Value Added Services - Extra services that a distribution center will perform in order to meet the needs of their customers. Typically refer to special assembly, packaging, or picking services.

 

W

 

Warehouse Receipt - Receipt for product received into the warehouse.

Wave Picking - Method of picking for multiple item orders where all zones are picked simultaneously and the product is sorted later. This method of picking is often used when picking shipments for specific carriers so that the product for each carrier is in the same place and can be sorted after it is picked.

WMS, Warehouse Management System - WMS is software designed to function around three main components: put away, replenishment, and picking. By directing these three components, the system can logically manage the movement and storage of product in the warehouse.

 

X, Y, Z

 

Zone - Zones are locations in the warehouse where usage is determined by the characteristics of the product being stored such as special handling, or special inventory management requirements.

Zone Picking - Method of order picking where the warehouse is divided into pick zones. Items are picked from each zone and then transferred on a conveyer system from one zone to the next.

This article was published on Sunday 20 January, 2008.

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