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Inventory management

  • Rack zones – Overview

    A storage rack, both in intralogistics and retail, can be divided into different horizontal racking zones. This usually results in four racking zones, which are named as follows from bottom...

  • Allocation strategies for warehouse and picking systems/warehouse operation strategies

    In a company, it is vital to set goals before developing strategies and to monitor their consistency and achievability continually. In logistics, there are strategies for planning new systems, implementing...

  • Turnover rate and Rotation of goods: Fast and slow movers

    The inventory turnover, also known as the inventory turnover rate or inventory turnover coefficient, expresses how often an average inventory is completely withdrawn and replaced in a given period (usually...

  • Kanban system

    The Kanban system is a planning system for production control. the Kanban system is often split into material flow and replenishment are controlled starting from the processing location, based on...

  • The Bullwhip effect

    The bullwhip effect describes coordination and communication problems in multi-stage supply chains – mostly in so-called fragmented supply chains. It can be localised thanks to fluctuations in production planning and...

  • Assortment width and assortment depth

    The assortment available in a warehouse and in the retail trade is subdivided into the assortment dimensions assortment width and assortment depth. The assortment width describes the range of different...

  • Radio Frequency Identification (RFID)

    Radio Frequency Identification (RFID) is a technology for the unambiguous and contact-free identification of objects (goods, living beings and states) of any kind. It enables fast and automatic data acquisition...

  • Advantages of RFID technology over barcodes

    What advantages does RFID radio technology have over barcodes? This question has also been on the agenda of intralogistics for some time now. In principle, more information is available with...

  • Rack zones – viewing zone

    A rack can be divided into vertical rack based on the scale of an adult (average size of 1.70 m). The viewing zone starts at an average height of 1.40...

  • picking due to the quick removal of goods and the easy removal of goods means that little energy is consumed by employees.

    Rack zones – gripping zone

    A rack can be divided into vertical zones based on the scale of an adult (average size of 1.70 m). The gripping zone starts at an average height of 60...

  • rack area is called the bending zone. It reaches an average height of 60 - 80 cm. In the bending zone, goods with low turnover are often stored. However, the expected turnover is not the only decisive factor for goods placement. The storage zone close to the floor is also suitable as a storage location for heavy and large-volume goods.

    Rack zones – bending zone

    A rack can be divided into vertical zones based on the scale of an adult (average size of 1.70 m). The lowest rack area is called the bending zone. It...

  • Just-in-time – Definition

    “Just-in-time” refers to a type of delivery in which the required goods are delivered on time and in exact quantities in order to keep warehousing at the processing location as...

  • The Milk Run Concept

    The milk run concept is a method for optimizing inter-company procurement logistics, often used in conjunction with just-in-time production. Based on existing consumption values, it describes a logistics supply cycle...

  • Manufacturing principles

    Different principles can be applied in manufacturing. Some products are manufactured according to forecasts, without specific sales order With other products production only starts after the reception of a sales...

  • The range of storage

    The range of storage is a key figure which expresses the internal security of supply by own stocks of a certain article within a particular article within a certain time....

  • CMR: the consignment note

    The term CMR comes from the French, Convention relative au Contrat de transport international de marchandises par route. It describes the agreement of all participating states on the contract for...

  • Storage maintenance costs – warehousing costs or storage costs

    Trading companies and manufacturing companies usually have a warehouse or distribution centre. Raw materials and supplies, intermediate products, semi-finished products, finished products and spare parts are stored there. The storage...

  • Advantages and disadvantages: centralized and decentralized warehouse

    In distribution logistics, the determination of warehouse locations represents a strategic decision. A basic distinction is made between centralized and decentralized locations, which can have different effects on logistics costs...

  • Inventory in companies and in logistics

    In the inventory, the assets of a company are determined on a key date; in this way, assets and liabilities are specifically documented. Such an inventory is a prerequisite for...

  • Point of sale systems, warehouse management and branch logistics

    A cash register system, also known as a POS system, is software that documents a specific financial transaction of an inventory or a good. In general, the POS system describes...

  • Product Lifecycle Management (PLM)

    The term Product Lifecycle Management, PLM for short, describes a holistic approach to pooling product information. It is a kind of cross-company management and control of the information flow of...

  • Replenishment in intralogistics

    Replenishment (also referred to as Supply) is an elementary process in today’s merchandise management, which contributes to the overall efficiency of the material flow if it is integrated as well...

  • The Supply Chain Management (SCM)

    Supply chain management (SCM) stands for the monitoring process as well as the coordination and control of the supply chain (value chain). This involves the allocation of all materials, information...

  • Conveying aids in intralogistics

    In intralogistics, conveying equipment is used to combine individual goods into larger load units. In general, the following definition applies: intralogistics uses conveying equipment to protect different goods, make them...

  • Order picking times – Dead time

    Dead time is an unproductive but unavoidable so-called auxiliary time, which arises during picking due to preparatory and follow-up activities (e.g. search and identification of the storage location). It can...

  • The storage location management

    The storage location management ensures that a storage location is recorded or occupied in width, height and depth. It covers two different topological aspects. On the one hand the overall...

  • Materials management in production and logistics

    Materials management controls the material flow within a company as well as order-related material flows to customers and suppliers. As a rule, the focus is on the business management and...

  • Distributed Order Management

    Distributed Order Management basically the consideration of all companies involved in an order as well as the responsible personnel. Producers, logisticians, suppliers and dealers try to solve questions about tasks...

  • Inventory costs

    Inventory costs are costs that arise from the movement of product goods in the warehouse or distribution center. They are a key figure from business management. Inventory costs in general...

  • Inventory management in intralogistics, incl. stock and stock reconciliation

    Inventory management stands for the complete digital recording of all stock movements in intralogistics in order to obtain reliable information about the storage location (where?), quantity (how much?), and quality...

  • Definition – WMS – The Warehouse Management System

    TheWarehouse Management System (WMS) is an indispensable software for the control and administration of stocks (see also Inventory Management) and storage locations within closed operations (e.g. distribution centers or manufacturing...

  • Stock Keeping Unit (SKU)

    The acronym SKU, Stock Keeping Unit, describes a clearly identifiable storage unit. A storage unit comprises all identical articles of a particular product variant. For identification purposes, a code is...

  • The Newsvendor Model in SCM

    Many supply chain management (SCM) approaches can be explained using the Newsvendor Model (NVM). This model, which originally comes from inventory management, evaluates both the costs of excessively high inventories...

  • The cost of unused opportunities in supply chain management

    No company can afford not to have the cost side under control. The figures from financial accounting serve as the basis for this. In many cases, the figures for the...

  • The degree of utilisation/the capacity utilisation

    The degree of capacity utilisation describes the proportion of the capacity used by resources/operating resources (plant, machinery, employees, energy) measured against the total available capacity – always in relation to...

  • Information in intralogistics

    Information describes the meaningful content of a message, which is of value for the recipient. The receiver can be either a human or a machine. The sent or received information...

  • Returns processing

    Returns handling describes several processes in the return of goodsordered – mostly – online. They are processed and handled by the distribution centeraccording to the client’s specifications. Looking at returns...

  • Storage capacity/storage economy

    Storage capacity is defined as the maximum number of loading units that a warehouse can hold. It also represents the actual capacity of a warehouse. It directly relates to the...

  • Host system (ERP system)

    The host system (usually an ERP system) is a central data processing system that can be accessed simultaneously by different computer systems and programs. Furthermore, in most cases the database(s)...

  • Heijunka lean method

    The Japanese lean method Heijunka pushes a production where the production flow of the parts market is continuously guaranteed despite market fluctuations. This avoids transport and idle times and distributes...

  • The distribution center

    A distribution center is an interface in the form of a building complex that functions exclusively within a logistics network. This can be a warehouse, a transshipment point or both...

  • The barcode – EAN, GTIN and GS1 standard

    Barcodes have successfully established themselves over other systems in recent years. The barcode is a binary code consisting of an array of parallel bars and separation gaps. These are arranged...

  • Master data

    In intralogistics, master data, also known as primary data or reference data, is data that contains operationally relevant information. This includes information about products, suppliers and customers, for example. Individual...

  • Storage and retrieval machine

    A storage and retrieval machine (SRM) is a storage device with which load units can be stored, transferred and retrieved. The storage, transfer and retrieval performance of a storage system...

  • picking business process, goods are often replenished. Managing and allocating replenishment is one of the tasks of supply chain management. By using a warehouse management system, it can be ensured before starting a picking process that there is sufficient stock in the picking area. The supply of goods may be necessary as a precaution, on-demand or due to a shortage in the warehouse. The different variants of replenishment can also be partially combined with each other in order to achieve an even system utilization with maximum readiness for delivery.

    Replenishment – Basics

    Before, during or even after the picking business process, goods are often replenished. Managing and allocating replenishment is one of the tasks of supply chain management. By using a warehouse...

  • Advance Shipping Notice

    An Advance Shipping Notice (ASN), also advice note or avis, is a piece of preliminary information on the delivery of goods or the delivery of payment. In the following, this...

  • Mobile and stationary loading units

    Loading units are collections of goods that are transported, transhipped or stored as they pass through the supply chain. In contrast to stationary units, mobile units can be freely transported,...

  • Cycle time procedure

    Goods are fed from the main warehouse to the picking area manually, as a precaution or on-demand. Depending on which criterion drives the replenishment, either the staging procedure, the reorder...

  • Reorder point procedure

    Goods are fed from the main warehouse to the picking area manually, as a precaution or on demand. Depending on which criterion drives the replenishment, either the reorder point procedure,...

  • Warehouse strategy – LIFO vs FIFO

    LIFO (last-in-first-out) and FIFO (first-in-first-out) are two different strategies for storing and retrieving goods. Last-in-first-out The last-in-first-out principle describes a storage strategy in which the goods that were put into...

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