Warehouse and 3PL terminology.

Systems and responsibilities

WMSWarehouse management system

Software that directs and records warehouse work such as receiving, putaway, picking and shipping.

In practice: A picker confirms an item and location against a warehouse task.

ERPEnterprise resource planning

Software coordinating business processes such as finance, procurement, inventory and sales.

In practice: A purchase, stock value and supplier invoice can belong to the same business process.

OMSOrder management system

Software managing the order lifecycle across entry, routing, fulfillment and related updates.

In practice: An order is allocated to the location that should fulfill it.

TMSTransportation management system

Software used to plan, execute and manage the movement of freight.

In practice: A transport team plans a load and follows its delivery status.

WESWarehouse execution system

Software coordinating the execution of warehouse work across labor and automation.

In practice: Work is balanced across people and automated equipment.

WCSWarehouse control system

Software coordinating material handling equipment and physical flow within an automated facility.

In practice: A conveyor or sorter receives the instructions needed to move a carton.

CRMCustomer relationship management

The processes or software used to maintain customer relationships, contacts and sales or service activity.

In practice: An account manager keeps client contacts and conversation history together.

Connections and data exchange

APIApplication programming interface

A defined way for software to request data or perform permitted operations in another system.

In practice: An integration reads order status from the WMS.

WebhookEvent notification

A message sent to a configured destination when a relevant event occurs.

In practice: A shipment event starts the tracking update process.

EDIElectronic data interchange

The exchange of structured business documents between trading partners using agreed formats.

In practice: An order or shipment notice moves between a retailer and its logistics provider.

SFTPSSH file transfer protocol

A way to transfer files over an SSH connection.

In practice: A scheduled inventory file is placed in an agreed folder.

MCPModel Context Protocol

A standard through which AI applications can connect to external tools and context.

In practice: An approved server exposes a warehouse lookup tool to an AI assistant.

Inventory and identifiers

SKUStock keeping unit

An internal identifier used to distinguish a product or variant.

In practice: Two sizes of the same shirt have different SKUs.

UOMUnit of measure

The unit in which a quantity is counted, stored or charged.

In practice: One case contains 12 individual units.

GTINGlobal Trade Item Number

A GS1 identifier for a trade item.

In practice: A product’s identifier can be encoded in a barcode.

SSCCSerial Shipping Container Code

A GS1 identifier for an individual logistics unit, such as a pallet.

In practice: A pallet label connects the physical unit to its shipment information.

LPNLicense plate number

A warehouse identifier for a container or grouped inventory. Its format depends on the system.

In practice: A warehouse tracks the stock held on one identified pallet.

Lot or batch

An identifier grouping inventory produced or received as a batch.

In practice: Stock from two batches can be tracked separately.

Serial number

An identifier for an individual unit.

In practice: Two otherwise identical machines have different serial numbers.

Barcode

A machine readable visual representation of an identifier or other data.

In practice: A handheld device reads a carton label into a warehouse app.

RFIDRadio frequency identification

Identification using radio communication with a tag and a compatible reader.

In practice: Tagged goods are read using RFID equipment rather than an optical barcode scan.

Receiving, fulfillment and documents

ASNAdvance shipping notice

Information sent ahead of an arriving shipment to describe what is expected.

In practice: Receiving compares the expected cartons with the goods delivered.

POPurchase order

A buyer’s order to a supplier describing the goods or services requested.

In practice: A receipt is checked against an expected purchase.

BOLBill of lading

A transport document recording shipment and carriage details.

In practice: A dock team checks the freight and shipment information at collection.

PODProof of delivery

Evidence that a delivery took place, such as a signed record or delivery confirmation.

In practice: Customer service locates the delivery confirmation when a client asks.

Putaway

Moving received goods into their assigned storage location.

In practice: A receiving pallet is moved from the dock to a recorded bin.

Pick and pack

Selecting the required items and preparing them for shipment.

In practice: The team picks units for an order and packs them to the client’s instructions.

Kitting

Combining items into an agreed set or finished kit.

In practice: Three separate products are assembled into one promotional bundle.

RMAReturn merchandise authorization

An authorization or reference used to manage a return.

In practice: Returned stock is linked to the original order and the agreed return decision.

Service, stock control and measures

3PLThird party logistics

A provider carrying out logistics services for other businesses. Scope can include storage, fulfillment and transport.

In practice: A warehouse fulfills orders for several client brands.

4PLFourth party logistics

A provider coordinating a wider logistics operation and other service providers for a client.

In practice: Several logistics providers are managed through one coordinating partner.

SLAService level agreement

Agreed service commitments and the way they will be measured.

In practice: A client and warehouse agree order processing cutoffs and service targets.

OTIFOn time in full

A measure of whether delivery meets the agreed timing and quantity requirements.

In practice: An operation defines the promised date and quantity before calculating performance.

Cycle count

A scheduled check of selected inventory rather than a complete stocktake at once.

In practice: The team counts a set of bins and reviews any differences.

FIFOFirst in, first out

A stock rotation approach prioritizing earlier received or created inventory according to the system’s rules.

In practice: Older eligible stock is allocated before newer stock.

FEFOFirst expired, first out

A stock rotation approach prioritizing the earliest eligible expiry date.

In practice: Stock with a nearer expiry date is selected before later dated stock.

VASValue added services

Additional services such as relabeling, repacking, assembly or kitting.

In practice: A completed relabeling job needs a quantity and the client’s agreed price.

CutoffCutoff time

The agreed deadline for a request or order to qualify for a particular processing window.

In practice: An order change arriving after the pick cutoff needs a different review.

Keep exploring.