Warehousing Glossary: 8 Common Terms (And Their Meanings)
If you’re new to warehousing, you’ve probably encountered a lot of industry jargon. It’s everywhere.
But don’t worry if you’re feeling stuck: this post is here to help. It runs through some of the most common warehousing terms you might encounter and what they mean in more detail so you’re not left scratching your head after every conversation.
Put-Away
You might sometimes come across the term “put-away” while dealing with warehouse types. This wording comes from the moving of inventory from a receiving area to storage locations. In other words, goods need to be “put away” in order for retrieval later.
Put-away is largely borrowed from the domestic space, but it could still throw you off if you haven’t heard it before.
Zone Picking
Zone picking is another term you could come across as a manager. The idea here is to break the warehouse into specific “zones” and then get pickers and packers to pick for them (instead of ranging across the entire facility). You are far more likely to come across this concept in larger operations at more established firms.
Ti Hi
The Ti Hi meaning you learn can be challenging, but the underlying idea is pretty simple. Ti or “tie” refers to the number of boxes of a certain size you can fit on a pallet. For example, you might arrange them in a 4x4 grid for a total of 16. The “hi” part refers to how many stacks you can make on top of the pallet without it falling over. For example, you might stack the boxes 4 high, for a total of 64 boxes per pallet.
WMS
WMS stands for warehouse management system and is critical for optimizing warehouse operations from the ground up. It’s highly useful and effective for things like inventory management and order picking, but you can use it for just about anything these days.
SKU
SKU is another acronym you’ll likely come across. It means “stock keeping unit” but it just refers to a specific product line. It’s a technical term you can use to differentiate one product from another in your inventory, which is very helpful.
Cycle Count
What about cycle count, another term you hear quite often in the context of warehouses?
Cycle count is about finding a subset of inventory and then counting it looking for issues. Managers like this method because it doesn’t interfere with the entire operation during the counting phase, allowing for less disruption overall.
Cross-Docking
Cross-docking is a warehouse method where inbound shipments are immediately transformed into outbound shipments. These could be necessary if you receive a large order or you are dealing with seasonal demand that requires quick processing.
FIFO
Finally, you will sometimes come across the FIFO acronym. This term just means “first in, first out,” and means that goods that were first to be received are those requiring shipping first. This way, the stock in the warehouse is always the newest item, even if the goods you sell are non-perishable, ensuring relevance.