Check out our City Logistic terms glossary
The minimum level of stock that must always be present in the management of a warehouse to protect against the difference between expected consumption and actual consumption and between expected delivery and actual delivery times. This therefore helps to protect against stock-outs during the replenishment process.
The level of occupancy of a structure or of equipment, which must be maximized in order to optimize its use. This value is usually expressed as a percentage.
One of the phases of the planning process when planning times and priorities in terms of materials and human resources are scheduled in order for the production process to function correctly. It helps to set the times and location of components so that personnel and equipment are organized in the best possible way.
Packaging conceived to group a certain number of sales units at the point of sale, regardless of whether it is sold as such to the end user or whether it serves only to facilitate the replenishment of shelves in the point of sale, it can be removed from the product without altering its characteristics. Possible examples are cardboard boxes, packs, trays, baskets and crates.
The ratio between the number of directly accessible Load Units and the storage capacity stored.
All the conditions agreed (or to be agreed) between a carrier and a forwarder or recipient regarding the type of shipment and the charges that need to be paid to the carrier. It also specifies whether these charges must be pre-paid or paid on collection.
Costs incurred by the shipper in moving the goods from one place to another under the terms of the transport contract. In addition to transportation costs this may include elements such as packaging, documentation, loading, unloading etc.
A document prepared by the shipper which includes a contract of carriage. It contains details of the goods to be transported to the port of loading and is signed by the land-based carrier as acknowledgment of receipt.
The number of times in the unit of time taken as reference, that shipments are or will be made.
SKU (Stock Keeping Unit)
Minimum indivisible unit of product placed in stock.
SLOT (Smart Locking Tool)
Innovative automated access opening system that allows selective access to a single compartment of the tray / case.
A sorting operation in which the picked items are divided according to their destination (by customer or geographical area). It can be done at the same time as picking by depositing the items in different containers according to the destination. Alternatively, it can be deferred and performed in a second phase, after all the picking operations to fulfil the order have been completed and can be achieved manually or automatically using conveyor belts.
Splitting (in transport)
Part of the transportation that is assigned to one of the parties, for example a forwarder or agent, to book a carrier for a specific journey
The space around the entrance and exit doors in which packages or pallets of goods arriving and awaiting storage or waiting for collection or shipment can be stored.
The process of analysis of stock and the model of management used in order to highlight any differences compared to the normal measures.
Stock coverage ratio
This is the number of days of stock consumption that the stock held is able to guarantee.
The difference between the stock held currently and the stock calculated or recorded
Quantity of stock in storage, which can be expressed in quantity, in packages, in weight, in pallets, in value, or in weeks of sale by dividing the relative amount by the average weekly output.
Stock Location System (SLS)
System where all the places in a warehouse are identified in order to facilitate the storage of and search for stock.
Inventory planning and control in relation to their quantity, quality and positioning; The planning and control of the quantities, quality and location of stock.
Out of stock situations when the stock of a particular item runs out in the warehouse or at the store.
A widely used measure to check stock performance expressed as the ratio of the costs of the units sold compared to the average value of the stock.
Stock-out costs (Shortage costs)
The economic consequences of an external or internal inability to satisfy a request from the warehouse. External impacts can include “backorder” costs, loss of profit due to lost sales and loss of future profits due to loss of customers.
The deposit of goods and products in a warehouse for a short period of time.
Overview of the processes of production, transformation, distribution and marketing which provides an approach that enables the integration of all the players, both upstream and downstream, in the various procurement stages that lead to the final market.
Supply Chain Management (SCM)
The philosophy of integrated supply chain management, from the procurement processes to physical distribution to the market. Each step is considered a link in a large chain and the SCM is a set of processes that incorporates a community of business partners who are committed to the common goal of satisfying the final customer.
Transport units which are similar to containers, but come in a variety of dimensions (2.50 metres wide, 2.62 metres high and 7.15, 12.50 or 13.60 metres long) and are used for intermodal transport.