Glossary of Terms
A
ABC Classification
A slotting and inventory prioritization method that classifies SKUs into A (high velocity), B (medium velocity), and C (slow movers) based on demand frequency or value.
Accessorial Charges
Additional transportation fees beyond base freight—such as lift gate, inside delivery, detention, or residential handling.
Activity-Based Labor Metrics
D365 functionality for measuring worker productivity across pick, pack, replenish, and movement tasks.
Advanced Warehouse Management (D365 WMS)
D365 functionality for measuring worker productivity across pick, pack, replenish, and movement tasks.
Aisle
A defined travel path between racking structures, typically labeled numerically or alphabetically for predictable navigation.
ASN (Advanced Shipping Notice)
A supplier-provided digital file used to accelerate receiving by pre-communicating items, quantities, pallets, and batch/serial numbers.
B
Backflush / Flushing
Automatically consuming raw materials against a production order based on BOM rules when specific events occur (start, finish, quantity produced).
Backorder
An unfulfilled portion of a customer order due to insufficient inventory availability.
Batch Number
A traceability identifier used to track groups of items manufactured or received together.
Batch Picking
A picking method where identical items from multiple orders are grouped into a single consolidated pick.
Bay
Vertical section of a rack between uprights.
Bulk Storage
Floor, pallet, or open-area storage designed for oversized items or high-quantity pallets not suitable for racking.
C
Capacity Planning
The science of aligning space, labor, racking, and equipment to meet current and future volume needs.
Case Picking
Picking full-case quantities from pallet or rack positions.
Cluster Picking
A picking method that uses multiple totes or containers simultaneously for multiple orders.
Containerization
D365 packaging logic that determines which container(s) an order should ship in based on size, weight, and packaging profiles.
Cross-Docking
Receiving goods and immediately routing them to outbound shipping lanes without putting them into storage.
Cycle Counting
Incremental inventory counting process performed continuously without shutting down operations.
D
D365 (Dynamics 365 for Finance & Operations)
Microsoft’s ERP platform containing modules for warehousing, supply chain, finance, production, and inventory management.
Demand Replenishment
Replenishment created dynamically when picking work cannot be completed due to insufficient forward pick stock.
Directed Putaway
System-driven logic that assigns the optimal storage location based on location directives.
Dock-to-Stock Time
The total time between receiving goods at the dock and placing them into their storage locations.
E
EDGE Training Method
Explain → Demonstrate → Guide → Enable. A structured training approach is applied throughout this guide.
ERP (Enterprise Resource Planning)
Integrated business management software system. For this guide, ERP refers to D365 F&O.
F
FEFO (First Expired, First Out)
Picking methodology that prioritizes items with the closest expiration date.
FIFO (First In, First Out)
Picking methodology that prioritizes the oldest stock first.
Flow-Thru
A receiving strategy where goods are staged temporarily for short periods (hours, not days) before being moved to outbound or production.
Forward Pick Zone
The ergonomic, low-level picking area stocked from reserve storage for fast-moving items.
Full Pallet Pull
A picking strategy where entire pallets are picked instead of case or each picks.
G
Garage Sale Inventory
Informal term used in this guide to describe unorganized, unlabeled, inconsistent inventory storage lacking structure.
H
High-Velocity Receiving
A structured inbound model focusing on rapid validation, LP creation, flow-thru/cross-dock routing, and minimal touches.
Hold / QC Hold
Inventory status reserved for quality inspection or incomplete evaluation.
I
Inbound
Any activity related to receiving, inspecting, and putting away goods.
Inventory Status
D365 inventory attribute indicating availability (Available, Quarantine, Damaged, Quality Hold, etc.).
IoT (Internet of Things)
Sensors and smart devices used for monitoring warehouse temperature, forklift movements, dock doors, etc.
L
Labor Standards
Performance-based time expectations for picking, packing, replenishment, or other warehouse tasks.
Layout
The physical arrangement of racks, aisles, staging lanes, and work areas.
License Plate (LP)
A scannable ID assigned to a pallet, carton, or tote in D365, representing a logical inventory container.
Load Planning Workbench
A D365 tool used to group shipments, create loads, sequence deliveries, and manage outbound transportation.
Location
A uniquely named physical storage or pick face position.
Location Directive
D365 logic that determines where items should be stored or picked from.
Location Profile
Attributes assigned to location types (LP-controlled, fixed, bulk, staging, etc.).
M
Master Planning
D365 planning engine that drives purchase orders, transfer orders, and production orders.
Min/Max Replenishment
Forward pick area stocking model based on minimum and maximum stocking thresholds.
Mixed SKU Pallet
A pallet containing more than one item number—often discouraged in structured warehouses.
N
Negative Inventory
A system condition where D365 shows less than zero available inventory. Always indicates a data, scanning, or process failure.
Nested LP
Hierarchy where a pallet LP contains multiple child container LPs.
O
On-Hand Inventory
Quantity of available inventory stored within D365.
Outbound
Picking, packing, staging, loading, and shipping operations.
P
Pack Station
A dedicated area used for packing, validation, cartonization, and label printing.
Pallet Position
Standard unit of vertical and horizontal storage capacity – “one pallet’s worth” of space.
Pick Path
The physical route a picker follows; optimized to minimize travel time.
Pick-to-Carton / Pick-to-Tote
A picking method where items are picked directly into the final shipping container or tote.
Production Staging
Material movement to a location adjacent to a production line.
Q
Quality Order
D365 mechanism for triggering testing, inspection, and sample validations.
Quarantine
Inventory status used to isolate items pending inspection or resolution.
R
Rack Totem Label
Vertical label placed on upright frames identifying aisle, bay, and levels.
Raw Material (RM)
Inventory consumed during production operations.
Receiving Work
System-generated tasks for validating, LP labeling, and moving inbound goods.
Replenishment Work
Tasks generated by D365 to refill forward pick or stage raw materials.
Reserve Storage
High-level or deep-rack storage used for bulk inventory.
Return-to-Stock (RTS)
Returning a sellable returned item to an active stock location.
Return-to-Vendor (RTV)
Returning defective or unacceptable goods back to suppliers.
S
Scan Compliance
Percentage of transactions properly scanned using ScanWorkX devices.
ScanWorkX
A mobile, barcode-driven warehouse execution system integrated with D365 F&O.
Serial Number
Unique identifier used to track individual units.
Slotting
The method of assigning SKUs to their optimal storage locations.
Smart Barcode
A barcode encoding multiple data elements (item, location, quantity, or work ID).
Staging
Temporary warehouse areas used between picking and loading or receiving and putaway.
Stock Keeping Unit (SKU)
Unique identifier for distinct inventory items.
T
Throughput
Rate at which goods flow through the warehouse.
Totem Label
Large, vertical rack label showing location hierarchy.
Transfer Order
D365 document used for moving inventory between warehouses or sites.
Travel Path
Physical route for forklifts or pickers; optimized to prevent congestion.
U
UOM (Unit of Measure)
The defined measurement for quantities of an item (each, case, pallet, kilogram, etc.).
V
Velocity
Movement frequency of an item; used in slotting and replenishment strategies.
Vendor Compliance
A supplier’s adherence to labeling, packaging, and ASN requirements.
W
Wave
A group of outbound orders released together to create pick work.
Wave Template
Rule set determining how waves form, release, and allocate inventory.
WES/WCS (Warehouse Execution/Control System)
Systems used to control automation and material handling equipment.
WIP (Work in Process)
Inventory in the middle of production activities.
Work Template
D365 configuration defining pick/put logic, steps, and work classes.
Z
Zone
Logical grouping of locations; used for picking, putaway, and replenishment.
