ERP, WMS & supply chain glossary.

A classification method that sorts SKUs into three tiers by velocity or value. A-items (top 20%) get the most operational attention; C-items (bottom 50%) get the least. Used to set cycle-count cadence, safety-stock levels, and reorder priorities.

An Advanced Shipping Notice, also called a Despatch Advice, is an electronic message telling a customer what is being shipped before it arrives. It lists products, quantities and SSCC pallet identifiers, letting major Australian grocers scan deliveries against the notice for fast, accurate receiving.

The quantity of an SKU available to commit to new orders, accounting for current stock plus inbound supply minus already-allocated demand. ATP drives accurate promise dates and prevents overselling across sales channels.

The Australian Unique Device Identification Database is the TGA register assigning unique identifiers to medical devices for traceability. Suppliers and distributors capture device identifiers through receiving and inventory processes, supporting recall management and post-market tracking across Australia's regulated medical device supply chain.

A backorder is a customer order for an item that is temporarily out of stock but still accepted for later fulfilment. It captures demand without losing the sale, though long backorders risk cancellations. Clear lead-time communication keeps customers informed until replenishment arrives.

A barcode is a machine-readable pattern encoding product or location data, scanned to identify items quickly and accurately. Linear formats like GS1-128 and 2D codes underpin receiving, picking and despatch. Barcodes cut data-entry errors and are the backbone of warehouse traceability.

A Business Activity Statement is the form Australian businesses lodge with the ATO to report and pay GST, PAYG withholding, PAYG instalments and other tax obligations. Most businesses lodge quarterly, drawing figures from their finance system rather than their warehouse or operations layer.

A group of units produced or received together that share a common identifier (batch number). Batch tracking is required for compliance, recall capability, and FIFO enforcement in food, pharmaceutical, and regulated manufacturing.

A uniquely addressed storage position in a warehouse — typically aisle, bay, level, and slot (e.g. A-03-2-1). Bin-level tracking is the difference between knowing you have stock and knowing where it is, and it underpins directed putaway, pick paths, and cycle counting.

A structured list of raw materials, sub-assemblies, and components needed to produce one unit of a finished product. Single-level BOMs cover light assembly; multi-level BOMs cover real manufacturing.

The direct cost attributable to producing or acquiring the units sold during a period. Used in P&L reporting and inventory valuation. ERPs and accounting systems should agree on COGS to the cent at month-end.

In freight, a consignment is a single shipment of goods sent from one sender to one receiver under one transport document, often spanning multiple cartons or pallets. The term also describes consignment stock, where a supplier's goods are held and only invoiced once the customer sells them.

Software that holds customer records, contact history, and sales activity. In operations platforms, "CRM-light" means customer records and order history live inside order management rather than in a separate sales system — so service, sales, and the warehouse all work from the same customer record.

Cross-docking moves inbound goods directly from receiving to outbound despatch with little or no storage. Products are sorted, consolidated and reloaded, cutting handling, holding cost and dwell time. It suits fast-moving or pre-allocated stock and demands tight scheduling between inbound and outbound flows.

A rolling inventory audit process where small subsets of SKUs are counted continuously through the year. Replaces the annual stock-take. Done well, keeps inventory accuracy above 98% without shutting the warehouse down.

Dead stock is inventory that has stopped selling and is unlikely to move, tying up capital and warehouse space. Causes include over-ordering, poor forecasting and obsolete or seasonal lines. Identifying dead stock early lets operations discount, bundle or write it off before losses grow.

Delivered In Full On Time is a supply-chain metric measuring the share of orders delivered complete and on the promised date. Australian retailers and grocers use DIFOT as a supplier scorecard, so warehouses track picking accuracy and despatch timeliness closely to protect their rating.

Dimensional weight prices a parcel on the space it occupies rather than its actual mass, calculated from length, width and height. Carriers charge the greater of dimensional and actual weight, so bulky light items cost more. Right-sizing cartons reduces freight spend on every shipment.

Dwell time measures how long goods or equipment sit idle at a point in the supply chain, such as stock awaiting putaway or trailers waiting at a dock. High dwell time signals bottlenecks. Reducing it improves throughput, space use and asset utilisation.

A structured format for exchanging business documents (purchase orders, invoices, advance ship notices) between trading partners. Common in wholesale-to-retail flows for chain retailers like Foodstuffs, Woolworths, and Coles.

End of Financial Year marks the close of Australia's financial year on 30 June. It triggers stocktakes, tax reporting, depreciation reviews and inventory valuation. Operations teams typically run a full stocktake near EOFY to reconcile physical stock against system records for accurate financial reporting.

The order quantity that minimises total holding plus ordering cost for an SKU. Formula: √((2 × demand × order cost) / holding cost). Modern ERPs run continuous EOQ calculations against live demand data rather than the textbook static formula.

eParcel is Australia Post's business parcel-lodgement service for high-volume senders, providing barcoded labels, tracking and manifesting. Warehouse and shipping systems generate eParcel labels and despatch manifests so dispatched orders are scanned, tracked and reconciled against Australia Post records across domestic deliveries.

The system of record for a business — customers, products, orders, inventory, finance, purchasing, and often HR and manufacturing. Distinct from a WMS (which runs the warehouse) and an OMS (which runs orders across sales channels).

A 4PL provider manages and orchestrates an entire supply chain, coordinating multiple 3PLs, carriers and warehouses on a client's behalf. Acting as a single point of control, it owns strategy, technology and integration rather than physical assets, optimising the whole logistics network end to end.

An inventory-pick strategy that dispatches the unit with the earliest expiry date first. Required in food, pharmaceutical, and any business carrying perishable or dated stock. Distinct from FIFO, which uses receipt date.

An inventory-pick strategy that dispatches the oldest unit (by receipt date) first. Also used as an accounting method for valuing inventory. Most fast-moving SKUs default to FIFO; high-expiry SKUs default to FEFO.

Food Standards Australia New Zealand is the statutory authority developing the food standards code applied across both countries. It governs labelling, allergens, additives and traceability. Food businesses must support recall readiness and batch tracing, which warehouse and inventory systems help deliver through lot capture and expiry control.

A profitability ratio measuring gross margin earned per dollar of average inventory investment. Formula: (gross margin × inventory turnover) / cost of inventory. Used heavily in retail and wholesale distribution to evaluate SKU profitability.

GS1 is the global standards organisation behind barcodes and supply-chain identifiers used across Australian retail. It maintains GTINs, GS1-128 barcodes, SSCC pallet labels and electronic messaging formats, giving suppliers and major grocers a common language for identifying products, cartons and shipments.

A Global Trade Item Number is the GS1 identifier that uniquely labels a product or packaging level for scanning and trade. Encoded in retail barcodes, the GTIN links a physical item to its master data, underpinning accurate receiving, picking and point-of-sale across Australian supply chains.

Hazard Analysis and Critical Control Points is a preventive food-safety framework that identifies hazards and sets control points across production and storage. Australian food and warehousing operations use HACCP plans alongside batch, lot and expiry tracking to maintain traceability and respond quickly to a recall.

The light-assembly process of combining individual SKUs into a single sellable kit at the warehouse. Common in subscription boxes, promotional bundles, and pre-assembled retail packs. Distinct from full manufacturing because kits are non-irreversible.

Lead time is the total elapsed time between placing an order and receiving the goods, covering processing, manufacturing, transit and receiving. Accurate lead times drive reorder points and safety stock. For Australian importers, shipping and customs clearance often dominate overall replenishment lead time.

An accounting method for valuing inventory that assumes the newest units sell first. Rarely used in physical pick logic (which usually runs FIFO or FEFO). Permitted under US GAAP but not under IFRS, so uncommon in ANZ.

A batch identifier used in regulated industries to track units through production and distribution. Synonymous with batch in food and pharmaceutical contexts. Required for recall capability and FDA / MPI compliance.

A manifest is the summary document listing every consignment handed to a carrier in a despatch run. It groups parcels and pallets with tracking and address details, letting the carrier scan and accept the load at pickup and giving the warehouse a record of what left the dock.

A planning engine that turns finished-goods demand into purchase orders for raw materials. Required when BOMs go three or more levels deep, lead times are weeks to months, and production is forecast-driven. Most ANZ light-assembly operations do not need MRP.

Multi-client billing is the third-party logistics practice of tracking and invoicing warehouse activity separately for each client sharing a facility. It allocates storage, handling, pick-pack and freight costs per customer, letting 3PL operators bill accurately while keeping each client's inventory and transactions logically separated.

The system of record for the commercial lifecycle of orders across sales channels — aggregation, routing, promise dates, returns initiation. Distinct from a WMS (which moves stock) and an ERP (which runs the whole business).

Periodic inventory updates stock figures only at set intervals via a physical stocktake, rather than after each transaction. It is simpler and cheaper to run but leaves records stale between counts. Many growing operations move from periodic to perpetual tracking as volume rises.

Perpetual inventory continuously updates stock records as goods are received, moved, picked and shipped. Each transaction adjusts on-hand counts in real time, giving an always-current view without waiting for a full stocktake. It relies on disciplined scanning and a connected warehouse system.

The route a picker walks to collect the items on a pick list. Optimised pick paths sequence picks against the warehouse layout to minimise walking, which is typically the largest share of picking labour. Wave and zone picking are strategies for batching work along efficient paths.

A formal commitment to buy a specified quantity of goods or services from a supplier at agreed terms. POs drive receiving workflows, supplier accounts payable, and three-way matching against invoices and receipts.

The warehouse process of moving received stock from the receiving dock to its storage location. Modern WMS systems route putaway by velocity (fast-movers near pick-front), zone, or capacity — not by chronological order of receipt.

The reorder point is the inventory level that triggers a new purchase or replenishment order. It equals expected demand during lead time plus safety stock, ensuring fresh stock arrives before existing stock runs out. Accurate reorder points reduce both stockouts and excess holding.

RFID uses radio waves to read tags attached to items, cartons or pallets without line of sight. It enables bulk scanning, faster stocktakes and real-time location tracking in warehouses. Compared with barcodes, RFID speeds capture but adds tag and reader cost.

A formal procurement document inviting vendors to submit detailed proposals against a specified scope. ERP RFPs in ANZ should require pricing transparency, ANZ data residency, and direct vs partner-led implementation declaration.

A formal authorisation issued before a customer can return a product, used to track the return through receiving, disposition, and refund. Modern returns workflows assign disposition rules (restock, refurbish, scrap) based on RMA reason.

A monthly cross-functional planning cycle that aligns sales forecasts, supply plans, and financial targets. Mature S&OP requires demand forecasting depth most modular ERPs do not ship; dedicated S&OP platforms (Anaplan, o9) handle enterprise scope.

Safety stock is the buffer inventory held above forecast demand to absorb variability in supply and sales. It protects against stockouts when lead times slip or demand spikes, balancing carrying cost against service level. Australian operations size it around supplier reliability and seasonal peaks.

A unique identifier for an inventoried product variant. A T-shirt in three sizes and four colours is twelve SKUs. SKU count is the most-used proxy for catalogue complexity in ERP scoping.

SKU rationalisation reviews the product range to cut slow, duplicated or unprofitable lines while keeping winners. Trimming SKUs frees warehouse space, simplifies picking and lowers carrying cost. The aim is a leaner catalogue that protects revenue while improving stock turn and fulfilment efficiency.

Slotting assigns each SKU to a storage location based on demand, size, weight and pick frequency. Placing fast movers in accessible positions shortens travel, speeds picking and eases congestion. Periodic re-slotting keeps the layout aligned with changing demand and seasonal patterns.

The physical quantity of a SKU currently in the warehouse, regardless of allocation. Distinct from available stock (SOH minus quantities allocated to orders) and from ATP. SOH accuracy is maintained through perpetual inventory transactions and verified by cycle counts.

A Serial Shipping Container Code is the GS1 identifier uniquely tagging a logistics unit such as a pallet or carton. Printed on a GS1-128 label and referenced in the ASN, the SSCC lets trading partners scan and track each shipping unit through the supply chain.

A stocktake is the physical count of inventory to reconcile actual stock against system records. Australian businesses run full stocktakes around EOFY for financial reporting, while cycle counting verifies smaller portions continuously. Accurate stocktakes correct discrepancies, expose shrinkage and keep inventory valuations defensible.

Single Touch Payroll is the ATO system requiring Australian employers to report salaries, PAYG withholding and superannuation to the tax office each pay run. STP reporting happens through payroll or finance software, not warehouse or operations systems, and now covers all employers under STP Phase 2.

An outsourced fulfilment partner that handles warehousing, picking, packing, and shipping on behalf of brands. The brand owns inventory and customer relationships; the 3PL owns the warehouse and workflow.

Software that manages freight movement between locations — rate shopping, carrier selection, load planning, tracking, and freight audit. Distinct from a WMS (which handles dispatch within a warehouse) and an OMS (which routes orders to warehouses).

A picking strategy that groups orders into time-based release windows ("waves"), typically aligned to carrier cutoffs or SLA tiers. Default for ecommerce 3PLs running multiple carriers and SLAs.

The system of record for the physical movement of inventory inside a warehouse — bin tracking, picking, packing, dispatch, cycle counting, returns. Distinct from an ERP (which runs the whole business) and an OMS (which routes orders).

A picking strategy that splits the warehouse into geographic zones with dedicated pickers per zone. Multi-line orders get consolidated at pack. Default for wholesale distribution, B2B operations, and warehouses with mixed temperature zones.