Logistics Words


S (top)

Safety Stock
A stock reserve to protect against unexpected increases in product movement and to prevent out-of-stocks.
Sales and Operations Planning (S&OP)
A formal planning process used to determine the sales and operations strategy that best meets all aspects of the enterprise's objectives. The SOP process mediates sales, marketing, finance, operations and logistics objectives to formulate a single, achievable plan for the near-term — usually under one year.
Satellite Facility
A facility that is used to store merchandise which is not accommodated in the base facility due to lack of space or equipment.
Scan Gun
This is used with an RF unit or terminal to scan (read) bar codes.
SCE (Supply Chain Execution)
A subset of supply chain management, this is a framework of execution-oriented applications that enables the efficient procurement and supply of goods, services and information across enterprise boundaries to meet customer-specific demand. In its broadest sense, SCE includes the manufacturing execution system (MES), warehouse management system and other execution systems within the enterprise, as well as throughout the supply chain. The logistics-oriented elements of SCE include the transportation management system, warehouse management system, international trade systems (ITSs), real-time decision support systems (e.g., dynamic routing and dynamic sourcing systems), and supply chain inventory visibility systems.
SCIV (Supply Chain Inventory Visibility)
Applications that allow enterprises to monitor and manage events across the supply chain to plan their activities more effectively and pre-empt problems. SCIV systems enable enterprises not only to track and trace inventory globally on a line-item level, but also submit plans and receive alerts when events deviate from expectations. This visibility into orders and shipments on a real-time basis gives enterprises reliable advance knowledge of when goods will arrive.
SCM (Supply Chain Management)
A business strategy to improve shareholder and customer value by optimizing the flow of products, services and related information from source to customer. SCM encompasses the processes of creating and fulfilling the market's demand for goods and services. It is a set of business processes that encompasses a trading partner community engaged in a common goal of satisfying the end customer. Thus, a supply chain process can stretch from a supplier's supplier to a customer's customer. Functionally, SCM encompasses both transactional execution systems (e.g., enterprise resource planning, warehouse management system, MES, transportation management system and ITS); planning; optimization systems e.g., supply chain planning); and supply chain analytics (e.g., data warehousing).
SCP (Supply Chain Planning)
A subset of SCM, this is the process of coordinating assets to optimize the delivery of goods, services and information from supplier to customer, balancing supply and demand. An SCP suite sits on top of a transactional system to provide planning, what-if scenario analysis capabilities and real-time demand commitments. Typical modules include network planning, capacity planning, demand planning, manufacturing planning and scheduling, distribution and deployment planning, and transportation planning and scheduling.
Scratch (Markout)
When the item ordered shows quantity on hand, but the selector is not able to find the expected quantity.
Small metal or plastic strip and lead fastener used for locking totes, freight car, or truck doors. Seals are numbered for record purposes.
Selection Line
The arrangement of warehouse inventory in an orderly system to facili-tate selecting (picking) units to fill orders.
Service Level
The in-stock position of a warehouse expressed as the percentage of retail orders that can be filled (99% is a good level of service).
The party which tenders goods for transportation.
The loading and delivery (usually on trucks) of orders from the grocery distribution center to the retailer.
Shipping Unit/Shiping Case
Represents the single unit that a warehouse selects for a store. The col-umn in a table represents the number of retail units in a shipping unit. The number of retail units in a shipping case must be evenly divisible into the number of retail units in a case. If the two numbers are equal, then the warehouse is receiving and shipping in master cases. If the numbers are not equal, then the warehouse is re-packing (breaking down) the master cases into smaller units before shipping.
A facility for building or repairing ships.
Shrink Wrap
A layer of plastic film encasing a palletized load of merchandise. The film is subjected to heat, causing it to shrink and conform to the shape of the load.
Inventory or profit loss caused by faulty inventory counts, incorrect records, checkout errors, spoilage, or pilferage.
Simulation Routines
Various routines using historical information to simulate future alternatives for supply chain operations design. Usually strategically focused for use in future operations, these may then be optimized and/or prioritized.
SKU (Stockkeeping Unit)
A multi-character item that must be stored and accounted for sepa-rately. A single stockkeeping unit may have to be stored in different lots for quality control or maintaining stock rotation. It may also be necessary to split units between reserve storage and pick line when the entire stock cannot be maintained in the selection area.
Slot (Location)
The position occupied by pallets or cases of products. There are two types of slots: primary (select) and reserve (storage).
Slow Moving
Goods are stored in warehouse for relative long period without any moving out.
Imply a product or service which will "meet the needs" and "solve the problems" of the customer.
SOP (Standard Operation Procedure)
A set of goods handling procedure which is set in accordance with customer’s instruction.
The process of grouping products by grade (see also Grading). This may refer to separating batch-picked merchandise for shipping to vari-ous retail stores.
Spares/Service Parts Planning (SPP)
Planning that supports the optimal stock quantities and location of items used to service internal assets or customer equipment.
Split-Case (Broken-Case)
Less than a full case of merchandise. The picking method using individual units that are selected.
Staging Area
A space on which the receiving and shipping docks used to gather and check inbound and outbound loads.
Standard Pallet Rack
A one-deep, self-style rack originally designed for pallets, but also used for shelf storage of large units (usually one or two of a kind). It consists of uprights and beams that may be fixed or adjustable. Racks are secured to the floor, or rows are positioned back to back and secured to each other.
Stock Variance

Storage and Replenishment
A basic operation of the grocery distribution center in which merchan-dise is moved to assigned storage or reserve locations until needed to replenish the selection line.
Straddle-Lift Truck
A narrow-aisle lift truck.
Straight Load
Merchandise delivered to retail stores in trucks carrying only one product group, or a whole trailer carrying different products for one customer.
Stretch Pallet Wrap
Bands of plastic film applied by an associate used to encase palletized loads prior to shipment. Depending on fragility or shape of the mer-chandise, the number of bands can be varied to protect against product damage.
Decisions or activities in a part made at the expense of the whole.
Supplier (Vendor)
Any person or company who sells goods of any nature to a store. This term can refer to a wholesaler, jobber, wholesale agent, or manufacturer.
Supply Warehouse
A warehouse that stores raw materials or components.
System Markout
When the host shows a quantity on hand for a product, but the inven-tory system shows a quantity of zero, the item ordered is marked out within the system.

T (top)

3PL (Third Party Logistics Service Provider)
The company provide Logistics related services that were previously performed in-house by the client.
Refers to transportation in reference to fees and rules applied by carrier for its services.
Three-Level Slots (Three-Level Pallet Racks)
A rack designed for items stored in less-than-full-pallet quantities, or for pallets that do not require a full slot height. This rack can also be used for handstacking items from partially filled pallets into slot locations.
A measure of warehousing output volume.
The number of cases on a single tier (layer), and the number of tiers high on a pallet.
Tier (TI)
A single layer of units forming part of a unit load.
Time Sensitive
Any time delay of the product sold to market may lead its value decrease.
Time Study
A technique to develop standard time periods for performing various tasks.
Time-Definite Services
Delivery is guaranteed on a specific day or at a certain time of the day.
To Location
A code identifying the type of location and location ID to which the product is currently being moved.
Trailer-on-flat car (piggyback).
The displacement of a vessel in tons of water.
Total Average Inventory
Average normal use stock, plus average lead stock, plus safety stock.
Total Cost Analysis
An approach that considers total costs minimization and recognizes interrelationship among system variables.
Total Quality Management
The Juran total quality management trilogy is quality control, quality planning, and quality projects.
A smooth, seamless, plastic or fiberglass container with a lid for trans-porting small items (e.g., candy, HBA, and general merchandise) from the distribution center to the retail store. It is a lightweight container used to separate and protect high value items.
Tracking and Tracing
Monitoring and recording shipment movements from origin to destination.
Traffic Management
The management and controlling of transportation modes, carriers and services.
Transit Time
The total time that elapses between a shipment's pickup and delivery.
Transportation Management
System used to plan freight movements, do freight rating and shopping across all modes, select the appropriate route and carrier, and manage freight bills and payments.
Transportation Planning and Scheduling
Specifies how, when and where to transport goods. Transportation planning and scheduling applications may provide weight/size restrictions, merge-in-transit, continuous move, mode or carrier selection, and less than truckload (LTL)/full truckload (FTL) planning functionality.
The transfer of cargo from one conveyance to another.
Truckload Carriers (TL)
Trucking companies which move full truckloads of freight directly from point of origin to destination.
Turnover (Turns)
The rate at which products must be restocked due to customer sales. Turnover may also refer to the number of employees hired to replace those who have left an establishment.
Turret Truck
A type of lift truck that is counterbalanced with a long wheel base to stabilize it when heavy loads are lifted to high levels. It can lift and rotate loads left or right, and move loads sideways for storing and retrieving merchandise in pallet racks.

U (top)

A means of handling a unit load from the selection aisles to the retail store aisles. It moves on four wheels and has strong sides that prevent product damage. Note: Using carts to ship merchandise lowers the cube capacity of a trailer. Carts are normally off-loaded into the trailer.
Unit Cost
The cost associated with a single unit of product.
The action that goods are move out of the vehicle / container.
UOM (Unit Of Measurement)
A pre-defined and mutually agreed unit of measurement.
UPC (Universal Product Code)
A computer code identifying a product. An electronic scanner reads the code and sends the information to a central computer. Also known as bar code.
U-Pick Selection (Perimeter, Horseshoe, or Quad Selection)
A selecting (picking) pattern in which selectors move up one side of the aisle and down the other, returning to the point where the selection cart or truck is placed.
User Acceptance Testing
User performed test to determine a system for a specific task performs according to specification.
Utilization Rate
A fleet productivity measurement that tracks % of time that vehicle is being used.

V (top)

Value Added
Increased or improved value, worth, functionality or usefulness.
Variable Cost
A cost that fluctuates with the volume or activity level of business.
Variable-Measure Trade Item
An item always produced in the same predefined version (e.g., type, design and packaging) that may be sold at any point in the supply chain. However, it may vary in weight and size by its nature, or it may be traded without a predefined weight/size/length.
The ability to access pertinent data as it relates to logistics and supply chain.
VMI (Vendor-Managed Inventory)
In the VMI process, the vendor assumes responsibility for managing the replenishment of stock. Rather than a customer submitting orders, the vendor will replenish stock as needed. This is sometimes referred to as supplier-managed inventory (SMI) or co-managed inventory.
The rate of movement or flow of goods, services, money, or people.

W (top)

A physical facility in which the primary purpose is storage of merchandise.
Warehouse Point
The ID for a place in the warehouse. The first three characters are the point's type; the last three digits identify the point. For example, DOR003 identifies dock door number 3. Types of points are: assign-ment, dock, door, haul, office, passage, P-N-D, stage, and twilight zone.
WIP (Work-in-Process)
Parts and subassemblies in process of becoming finished goods.
WMS (Warehouse Management System)
A software application that manages the operations of a warehouse or distribution center. Application functionality includes receiving, putaway, inventory management, cycle counting, task interleaving, wave planning, order allocation, order picking, replenishment, packing, shipping, labor management and automated material-handling equipment interfaces. The use of radio frequency technology in conjunction with bar codes provides the foundation of a WMS, delivering accurate information in real time.

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Z (top)

Zero Latency
A goal of to keep moving goods or information in the supply chain to provide near-real-time information management and reduce in-transit inventory costs.
Zone Picking
A system in which the facility is divided into areas that are determined by physical characteristics of the products, order types, or balancing of volume. Order selectors pick only in their assigned zone and move the merchandise to a staging area for assembly prior to loading for ship-ment.
Z-Pick Selection (Zigzag or Pivot Selection)
A selection pattern in which selectors pick back and forth on alternate sides of the aisle.