Order Fulfillment and Distribution Flashcards

What is cross-docking?

Answer: Transferring inbound freight directly to outbound transportation with minimal or no storage time

Cross-docking is a fulfillment strategy where inbound goods are unloaded, sorted, and immediately loaded onto outbound vehicles, bypassing warehouse storage.

What is a stock-keeping unit (SKU)?

Answer: A unique identifier assigned to each distinct product for inventory tracking

A SKU is a unique alphanumeric code assigned to a specific product variant (e.g., size, color) to enable accurate tracking and management in inventory systems.

What does 'on-time in-full' (OTIF) measure in distribution?

Answer: The percentage of orders delivered on time and with complete quantities as ordered

OTIF is a key performance indicator that measures whether orders were delivered both on the agreed date and with the full quantity requested.

What is a backorder?

Answer: An order for an item that is currently out of stock and will be fulfilled when inventory is replenished

A backorder occurs when a customer's order cannot be immediately fulfilled because the item is out of stock, and the order is held until inventory is available.

What is the role of a warehouse management system (WMS)?

Answer: To control and optimize warehouse operations including receiving, storage, picking, and shipping

A WMS is software that directs and tracks all activities within a warehouse, including inventory locations, picking instructions, labor management, and shipment processing.

What is the purpose of a shipping label's barcode in a fulfillment operation?

Answer: To enable automated scanning and tracking of the package throughout the delivery network

The barcode on a shipping label encodes key data (order number, address, carrier routing) that allows scanners at each handling point to track and route the package automatically.