| Many
of the terms used in the world of third-party logistics do
not appear in a standard dictionary, nor is there a dictionary
of fulfillment or warehouse management definitions. We offer
this glossary to help you better understand our business.
If
you have a term you would like defined, or have a definition
that you would like to share with us, please send us an e-mail.
A
ABC stratification and classification
Method for categorizing inventory into groups based upon certain
criteria. Examples of ABC stratifications would include classification
by turnover, by size of product or storage space required,
by sales dollars, and by amount of product sold. ABC stratifications
help to determine inventory-planning policy, to optimize inventory
turnover and maximize order
picking efficiency.
ABC
see activity based costing
Activity Based Costing (ABC)
Costing method that breaks down operations costs into specific
activities, called cost drivers, to measure product processing
times and their related expenses. Often, time and motion studies
are part of activity based costing, to help determine the
cost of performing an operation to complete a 3PL
or third party fulfillment
bid, or to help establish a baseline for improving operational
efficiency.
ADC
see automated data collection
accuracy audit
Verification of inventory
accuracy, reconciling physical counts of inventory with
the inventory data.
advanced planning and scheduling
(definition coming soon)
advanced shipment notification
see ASN
AIDC (automatic identification and data collection)
see automated data collection
aisle
the physical passageway in a warehouse for transit of material
handling equipment, such as forklifts, pallet jacks, and people.
Aisle also is the location designation of a product on a particular
side of an aisle.
allocation
In inventory management within a 3PF
or 3PL operation, allocations
are based on actual demand created by sales of a specific
item. A standard allocation is the total quantity of a specific
item needed for either a specific order or for a specified
time period. A firm allocation reserves the inventory for
the specific order or time period designated.
APS
see advanced planning
and scheduling
ASN (advanced shipment notification)
advanced shipment notifications are used to notify a customer
of a shipment. An ASN will often include purchase order (PO)
numbers, stock keeping unit (SKU)
numbers, lot numbers, quantity, carton
number, and pallet or container number. An ASN can be on paper,
but most are via electronic notification, principally via
EDI (Electronic Data Interchange).
Advanced shipment notification (ASN) systems are often combined
with bar-coded compliance labeling which allows the customer
to receive the shipment into inventory through the use of
bar-code scanners and
automated data collection
(ADC) systems.
automated data capture
see automated data collection
automated data collection (ADC)
Also known as Automated Data Capture and AIDC (Automatic Identification
and Data Collection). Computerized systems to automate transactions
in warehousing and shipping operations. Data collection systems
require interface to collect the data such as scanners and
Radio Frequency (RF) receivers
(RFID readers), and related terminals and software.
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