Batch Picking in logistics is the process of picking multiple items for multiple orders at the same time. The correct execution of this process allows a warehouse or a manufacturer to reduce the number of trips to the same spot, which in turn saves time and transportation costs.
Bin locations are designated and are the most basic unit of storage space in a warehouse. These bin locations are an effective way of storing inventory, making them easily accessible, which saves time, effort and ensure efficient warehousing.
The term 'bulk' is one of the most commonly used terms in inventory management and distribution. It refers to products that are transported and stored in large quantities. Commodities such as iron ore, coal, grains, vegetables and more.
Barcode, present on a product in a series of alternation lines and spaces which represent encrypted information for security purposes. This encrypted information is only readable by barcode scanners.
The term 'Cargo' refers to goods that are carried by some form of transportation.
Commodities are products such as grains, precious metals, vegetables, coal, oil and others that can be further processed into finished consumable goods. Products that fall under the same category are considered fungible, in other words, interchangeable with other products that fall in the same category irrespective of who produced or manufactured it.
Carrying cost is the cost of storing the inventory. This cost can include warehousing costs, cost from opportunities lost and inventory cost related to perishable goods or insurance.
Consolidation warehousing is the process in which multiple small shipments from different suppliers are consolidated into larger and more economical shipping load, all of which are intended for a specified geographical area.
Capacity Requirement Planning is the process where businesses depending on their size involve in a detailed analysis of sales and marketing aspects, in order to determine how much their company needs to produce and if they're capable to meet those production goals.
It is one of the most commonly used International Commercial Terms or Incoterms. A seller is responsible for the risk of damage until the product to be delivered reaches the shipping point. The 'risk of damage' then transfers from seller to buyer once the product is at the carrier's custody.
Cost and Freight is a commonly used Incoterms, namely CFR, which requires a seller to pay all the costs and freights for transporting a product to the desired destination. This term is often used for ocean shipments. In this case, the seller is responsible for all the Cost and Freight, including the risk of damage or loss and other events that might happen. Once the product reaches the destination port, the responsibility shifts from the seller to the buyer.
Distribution Requirement Planning or DRP is the systematic process of ensuring optimal delivery of products. The systematic process involves sorting, quantising and locating products in order to meet customer demands effectively. DRP focuses on dropping shortages and enhancing the overall supply chain.
Delivery Duty Unpaid (DDU) is one of the oldest Incoterms. It refers to the fact that a seller is responsible for the safe shipment of goods to a specific location. A seller pays for the transportation costs and owes any risk due to loss or damage until the products reach a named place.
Shipping the goods to the destination port is a responsibility of a seller which includes for all the costs incurred for transportation until the buyer receives it and transports it to the specified location. The agreement also consists of other charges such as shipping costs, import duties, insurance and complete coverage unforeseen events that might occur.
In a warehouse, dock leveller acts as a bridge for the height difference between warehouse-floor and the unloading vehicle. A dock leveller is a simple metal plate which can be raised to the desired position and lowered to the backside of the truck. The height-adjusting feature of a dock leveller ensures a smoother transition and prevents forklift damage and injuries.
A double-deep rack is a pallet storage system. It is incorporated in a warehouse to enhance storage-efficiency and pallet density. The process of double-deep racking involves storing pallets up to two rows deep for which specialised pallet handling equipment is used.
Effective capacity refers to the maximum amount of work an organisation can deploy in a specified time-period, keeping into consideration the various constraint factors such as quality issues, delay, handling, mismanagement and more.
Escrow is a type of financial arrangement where an asset or money is withheld by a third-party on behalf of other transacting parties. The escrow accounts require escrow fees and are managed by designated agents from escrow. Escrow Money or assets can be held by escrow until further instructions or fulfilment of contract-based obligations.
Fast-moving consumer goods (FMCG) are products that sell quicker at the consumer market. FMCGs have a shorter shelf-life primarily due to two reasons. One, They're high in demand, products such as soft drinks, biscuits, confections and more. Two, they're perishable products, such as meat, dairy products, vegetables and more.
Fourth-Party logistics provider or 4PL works as an integrator that collectively manage technology, resources and infrastructure to provide out of the box supply chain solutions for a business. A 4PL might partner with other 3PLs to form a consolidated design for managing the overall supply chain of a business.
A third-party logistics provider or 3PL is a company which provides 'outsourced logistics services'. The services can encompass everything from storage, warehousing, and fulfilment activities. A 3PL provider may offer specified services such as transportation, storage, or a bundle of services that are capable of managing the whole supply chain of a company.
