Decoding Warehouse Jargon: Key Terms Every Manager Should Know
Photo Credit: https://www.pexels.com/photo/warehouse-with-concrete-floors-4483610/
In the fast-paced world of logistics and warehousing, clear communication is crucial. But the industry is full of acronyms and technical terms that can be confusing, especially for newcomers or those stepping into management roles.
At Hannaman Material Handling, we think it’s important to keep things simple. That’s why we put together this handy guide to help warehouse managers and decision-makers understand the key terms so they can speak confidently and make better choices.
Here are some must-know terms for anyone in the field:
1. SKU (Stock Keeping Unit)
An SKU is a unique number for each product in your inventory. It helps you keep track of stock levels and avoid mistakes. Each product variation, like size or color, gets its own SKU.
Why it matters: A well-organised SKU system helps you prevent overstock and speed up order fulfillment.
2. FIFO / LIFO
- FIFO (First In, First Out): Use or sell the oldest inventory first.
- LIFO (Last In, First Out): Sell the newest inventory first.
Why it matters: FIFO is key for perishable goods, while LIFO may work better for certain accounting situations.
3. WMS (Warehouse Management System)
This is a digital tool that helps manage daily warehouse tasks, from receiving to shipping.
Why it matters: A good WMS boosts accuracy and efficiency across all operations.
4. AGV (Automated Guided Vehicle)
These are driverless vehicles that move materials around a warehouse by following sensors.
Why it matters: AGVs can handle repetitive tasks, cut labor costs, and improve safety.
5. Pallet Racking
This is a system to store palletised goods vertically and efficiently.
Why it matters: The right racking can save space and speed up order picking.
6. Pick Rate / Pick Path
- Pick Rate: The number of items a worker or system picks per hour.
- Pick Path: The route taken to collect products.
Why it matters: A smart pick path can boost productivity and reduce fatigue.
7. Cross-Docking
This process moves incoming goods straight to outbound shipments with little storage time—basically, goods come in one door and go out the other.
Why it matters: It cuts handling costs and speeds up the supply chain.
8. Lift Capacity
This is the maximum weight a forklift can safely lift. Exceeding this can damage equipment or hurt workers.
Why it matters: Always match lifting capacity to the loads you’re handling.
9. Cycle Count
Instead of a big yearly inventory count, cycle counting spreads it out into smaller, more frequent checks.
Why it matters: It keeps your inventory data accurate and reduces disruptions.
10. Ergonomics
This refers to designing work processes and tools to fit the needs of your workers, minimising strain and injury.
Why it matters: Good ergonomic practices can boost productivity and keep your team safe.
11. Dead Stock
This is inventory that hasn’t sold in a while. It takes up space and slows down your cash flow.
Why it matters: Spotting and getting rid of dead stock can free up space for items that move faster.
12. Dock-to-Stock Time
This tracks how long it takes goods to get from the receiving area to inventory.
Why it matters: Shorter times mean faster order fulfilment.
13. Kitting
This combines multiple items into a single package for shipping.
Why it matters: Kitting simplifies packing and can save on shipping costs.
14. PPE (Personal Protective Equipment)
This includes things like safety jackets, boots, gloves, and helmets that workers need to stay safe.
Why it matters: Using PPE helps prevent injuries and keeps you compliant with health and safety rules.
15. Uptime
This is how much time your equipment is running and ready to use. Less downtime means fewer disruptions.
Why it matters: Regular maintenance keeps your equipment running well.
Speaking the Language Runs a Better Warehouse
Knowing these terms can help you communicate better, make smarter decisions, and run a more efficient operation. At Hannaman Material Handling, we don’t just sell equipment; we offer training and support to help you succeed.
Whether you’re upgrading your equipment or exploring automation, we’re here to help you along the way. Get in touch today and see how we can support you and your business.
You can also download our “Warehouse Decoding Infographic” here.
