WMS Glossary — Warehouse Terminology | VasKem

Plain-English definitions of warehouse management terms: SKU, FEFO, FIFO, picking, put-away, cycle counting and more.

SKU (Stock Keeping Unit)

An SKU (Stock Keeping Unit) is a unique code that identifies each distinct product variant in a warehouse.

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Picking

Picking is the process of retrieving items from storage to fulfil customer orders, and is the most time-consuming warehouse task.

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Cycle Counting

Cycle counting is the practice of continuously counting subsets of inventory rather than doing one disruptive annual stock take.

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ABC Analysis

ABC analysis ranks inventory items by value and movement to focus management on the SKUs that matter most.

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FEFO (First Expired, First Out)

FEFO (First Expired, First Out) is a picking strategy that ships the soonest-to-expire stock first — critical for food and pharma.

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FIFO (First In, First Out)

FIFO (First In, First Out) ships the oldest stock first — the most common inventory rotation strategy.

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Put-Away

Put-away is the process of moving received goods from the receiving dock to their storage locations.

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Cross-Docking

Cross-docking moves inbound goods directly to outbound dispatch without long-term storage.

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Safety Stock

Safety stock is the buffer inventory held to protect against demand spikes and supply delays.

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Reorder Point

The reorder point is the stock level that triggers a new purchase order — based on lead time and demand.

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