Glossary: Terms from logistics and the supply chain

Automated Disposition

Automatic scheduling software takes over scheduling for routine ordering processes and helps to optimally invest in materials and goods in order to generate the maximum return for the company. This allows the dispatcher to concentrate on decision-relevant and strategic tasks.

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E

EDI - Electronic Data Interchange

The term EDI (Electronic Data Interchange) describes the process of electronic data exchange between two companies.

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H

Handling Unit

Handling Unit (HU for short) refers to a physical package or loading unit that can be identified by a unique identification number.

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J

Just-in-Time

The term Just-In-Time (abbreviated "JIT") refers to a strategy within a company's production in which materials are delivered to the place where they are currently needed at a specific time.

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L

Logistics Service Provider

Companies that provide logistics services for other companies are known as logistics service providers. Their services usually go far beyond the classic transportation of goods.

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M

Multi-Order-Picking

Multi-order picking is a picking method and describes the combination of several analog picking orders into one multi-order picking run. Several orders for picking goods are combined for the warehouse operator according to various criteria and a single warehouse route is created for this purpose.

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O

Order picking

Order picking in logistics describes the collecting of articles and goods and merchandise from the total assortment in a specified quantity. The process is carried out in one step or in several steps.

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Out-of-Stock

Out-of-stock, or "OOS" for short, describes the situation where a particular product or commodity is not in stock.

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R

Replenishment

The primary task of replenishment is to manage material flows and inventories so that all orders are reliably delivered on the agreed date at minimum cost. To this end, all tasks to be completed are distributed to the available resources.

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S

SKU

A stock keeping unit, or SKU for short, is a storage unit that can be uniquely identified by a code and is stored in a company's system.

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Supply Chain Management

In logistics, supply chain management (SCM) refers to the optimized control of the flow of goods and services and encompasses all processes during which raw materials are transformed into end products. SCM is thus responsible for the cross-company development and management of the flow of goods.

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T

Third Party Logistics (3PL)

The abbreviation 3PL stands for Third Party Logistics and refers to logistics service providers who take care of the transport and storage of their customers' goods and also provide other services such as order processing, invoicing or customs clearance.

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Transportation Management

The term "transportation management" refers to the management, control, and optimization of all transportation processes along the supply chain.

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