WMS 2560x1707

Warehouse Management System Terms and Definitions

If your business includes a warehouse or multiple warehouses you probably are familiar with some terms and definitions that apply to warehouses. This document may help you it your business is expanding or you just want to keep up on the latest WMS terminology that you have heard around the office water cooler or perhaps I should say “Warehouse Water Cooler”. Either way this document may help you and it includes 15 WMS terms that you may or may not be familiar with.

Warehouse Management System (WMS)

A common term usually used to identify a software system or module that includes the ability to scan bar codes and perform various transactions. LBSi has such a system that integrates fully and seamlessly to SAP Business One ERP software.


An image made up of a series of bar codes used for identification of items. A scanner is used to read the information that is stored in the barcode. 

QR Code

Abbreviation for Quick Response Code and is a type of matrix barcode or 2 dimensional barcode that was first designed in 1994 for auto industry in Japan.


Generally, refers to a quantity of items that are produced at one time. For example, if your company makes hand sanitizer the FDA requires that each container be properly marked with the batch number that the individual bottle came from. Batches are normally “many to one” meaning that a batch number includes several of the same item.


Synonymous with Batches (above).

Serialized or Serial Numbered

Generally, refers to a number for an item produced or purchased where the number is unique to one item. Example, each computer produced for a single item has a unique serial number that applies to one computer only.


Generally, refers to the process of transferring incoming material from a receiving or inspection area and putting the material into the general storage area.

Receiving Inspection

Your company may require that some or all of your incoming material require some sort of incoming inspection. This process is generally referred to as Receiving Inspection.


A common term that refers to a Third Party Logistics company that is acting as your agent and warehouse for some or all of your inventory. Often used in other areas of the country where you would like to stock inventory but you do not want to go to the expense of leasing or buying property and buildings.

Cross Docking

Refers to the process of moving material received directly to the shipping area thus bypassing the normal storage area. Often high volume or special ordered material is handled this way.

Batch Picking

The picking of orders in which multiple orders are picked by one person.

Zone Picking

The picking or multiple orders based on their location within the warehouse.

License Plate

In a WMS this refers to a pallet tag on a pallet that may include multiple items and/or multiple serial numbers or batches. The movement is the entire pallet at one time.


Usually defined as large area. This could be a separate building or a large area of one warehouse. For example, you may have a warehouse in a different city so the name of that warehouse might be the city. It could also be an inspection area of a warehouse so as to isolate the material required for inspection in a separate warehouse.

Location or Bin Location

A specific area or location in a warehouse. This might be a specific location in an aisle and shelf in a warehouse. Most WMS systems like the LBSi WMS system utilizes bin locations.

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