Our glossary

The logistics lexicon -
informs from A to Z

Understanding logistics is not that easy. There are many different terms and processes. You can find the most important ones here.

Logistics lexicon

Logistics terminology

Simply explained.

The Logistics
Lexicon

Here you will find definitions of common terms and abbreviations in logistics and our warehouse management software.

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Do you have questions about a term or is one missing from our list? Please feel free to contact us.

If single-stage picking is used, a certain quantity of items is picked from an assortment and put together. Single-stage or multi-stage picking is possible in the warehouse. With single-level picking, the person always picks on an order-related basis. In two-stage picking, several orders are picked and then assigned to the respective orders for dispatch.

An AGV is a computer-aided, self-propelled conveyor that moves goods automatically through production halls without a driver.

The FIFO principle is a consumption sequence that corresponds to the chronological order of acquisition or production. The goods stored first are also the first to be removed from storage.

Industrial trucks are means of transportation for the horizontal operational transport of goods, e.g. tractors or forklifts. This distinguishes industrial trucks from lifting equipment such as cranes, which are mainly used for the vertical transportation of goods. Industrial trucks are also known as floor conveyors or industrial trucks. There are track-bound and trackless industrial trucks.

The consignment note is a transport document that proves the conclusion of a contract of carriage. Among other things, it contains details of the sender, recipient, the relevant customs regulations and the scope of the consignment (e.g. number of packages, weight, etc.) and is regulated by Section 409 of the German Commercial Code (HGB). Three original copies of the consignment note are issued and signed by the sender. One of these copies is intended for the sender of the consignment note, one accompanies the goods and one is kept by the carrier.

The fill level is the ratio of occupied storage bins to storage capacity. As the fill level is not a constant value but depends on the storage bins occupied each day, it changes over time.

A bundle is a package containing one unit load or several individual packages. Products of the same or different types are grouped together for joint handling in logistics.

A pallet cage or simply a pallet cage is a loading aid in conveyor technology. The mesh box pallet can be loaded with various items and picked up by a forklift truck. This is made possible by four feet on the underside of the mesh box pallet.

The Global Trade Item Number can be used to uniquely identify items worldwide. The GTIN is an identification number from the EAN-UCC system and consists of 14 digits.

A general contractor is a company that is in charge of and solely responsible for handling and executing an order, but works with other companies (subcontractors). General contractors offer everything from a single source, from the idea to the complete turnkey logistics solution.

Hanging garments are goods from the clothing industry that may only be transported and stored hanging for quality and damage reasons.

A host is a computer that is integrated as a higher-level system in a computer hierarchy. These are often computers for predominantly commercially oriented tasks, from which, for example, delivery orders are transferred to the warehouse.

KANBAN is a system used to control the replenishment of parts. The aim is to achieve low on-site stocks according to the pull principle. By providing an empty container at a defined transfer point, the point of consumption notifies the supply points of a requirement.

In shipping logistics, CEP stands for courier, express and parcel service. This refers to DHL, DPD, UPS and Hermes.

Picking involves picking certain partial quantities (items) from a total quantity (assortment) for an order. Picking can involve a customer order, but also a production order.

In a warehouse management system, the "multi-client capability" function makes it possible to manage and maintain stocks from different customers in one warehouse, e.g. for logistics service providers.

The "person-to-goods" picking strategy describes this procedure within a picking process. The goods to be picked remain at their storage location. Following instructions on the picking list (pick list) or a mobile data collection device, the person moves from one storage bin to the next and picks the goods.

A material flow is the physical handling of goods movements of any kind. A distinction is made between directed and undirected material flow. In a directed material flow, the direction of flow is predetermined, e.g. in the context of assembly line or line production. A non-directional material flow is when there is no predefined flow direction, e.g. in the context of workshop production.

A storage and retrieval machine (SRM) is a rail-guided vehicle that is used for storage and retrieval in a high-bay warehouse.

In the case of a return, the recipient sends the goods back to the sender. Possible reasons for a return may be, for example, damaged goods, incorrect quantity of goods, incorrect delivery, etc. A returns slip is usually used to process a return. As soon as the goods reach the warehouse, the returns slip is scanned and the return delivery is recorded. After the quality check, the goods are put back into storage at best. Many companies introduce the so-called RMA process to improve the planning of returns. The RMA process (Return Merchandise / Material Authorization) is used for the structured return of returns in order to allocate them faster, without errors and personalized and to subject them to a technical quality check.