Inventory Control in Automation
Expert-defined terms from the Professional Certificate in Warehouse Automation course at London School of Business and Administration. Free to read, free to share, paired with a globally recognised certification pathway.
Inventory Control in Automation #
Inventory Control in Automation
Inventory control in automation refers to the process of managing and monitoring… #
This includes tracking inventory levels, replenishing stock, and optimizing storage space to ensure efficient operations. Automation technologies such as barcode scanners, RFID tags, automated storage and retrieval systems (AS/RS), and warehouse management systems (WMS) play a crucial role in streamlining inventory control processes.
Automated Systems #
Automated Systems
Automated systems refer to technologies and machinery that perform tasks with mi… #
In the context of inventory control, automated systems are used to streamline operations and increase efficiency. Examples of automated systems include conveyor belts, robotic pickers, automated guided vehicles (AGVs), and automated sorting systems.
Barcode Scanner #
Barcode Scanner
A barcode scanner is a device that reads and decodes barcodes printed on product… #
In inventory control, barcode scanners are used to track the movement of goods, update inventory records in real-time, and improve accuracy in picking and shipping processes. By scanning barcodes, warehouse staff can quickly locate products, verify shipments, and reduce errors.
Cycle Counting #
Cycle Counting
Cycle counting is a method of inventory auditing where a portion of the inventor… #
This allows warehouse managers to identify discrepancies in inventory levels, address issues promptly, and maintain accurate records. Cycle counting is often used in conjunction with automated systems to streamline the process and improve efficiency.
Inventory Management System #
Inventory Management System
An inventory management system is software that helps businesses track and contr… #
In warehouse automation, inventory management systems play a crucial role in optimizing stock levels, preventing stockouts, and reducing carrying costs. These systems integrate with other automated technologies to provide real-time visibility into inventory levels, streamline order fulfillment, and improve overall efficiency.
Just #
In-Time (JIT) Inventory
Just #
In-Time (JIT) inventory is a strategy where businesses maintain minimal inventory levels and only order goods when needed. JIT inventory helps reduce carrying costs, minimize waste, and improve cash flow. In warehouse automation, JIT inventory is supported by automated systems that enable quick order processing, accurate picking, and efficient replenishment.
Kanban System #
Kanban System
A Kanban system is a visual signaling method used to manage inventory levels and… #
In warehouse automation, Kanban systems utilize visual cues such as cards or electronic signals to trigger replenishment when inventory levels are low. By implementing a Kanban system, warehouses can reduce stockouts, improve inventory control, and enhance overall efficiency.
Material Handling Equipment #
Material Handling Equipment
Material handling equipment refers to machinery and devices used to move, store,… #
In warehouse automation, material handling equipment such as forklifts, pallet jacks, conveyors, and AS/RS play a crucial role in streamlining operations, increasing efficiency, and reducing manual labor.
Radio Frequency Identification (RFID) #
Radio Frequency Identification (RFID)
Radio Frequency Identification (RFID) is a technology that uses radio waves to i… #
In inventory control, RFID tags are attached to products or packaging to enable automated tracking and monitoring. RFID technology offers advantages such as real-time visibility, improved accuracy, and faster data capture compared to traditional barcode systems.
Reorder Point #
Reorder Point
The reorder point is the inventory level at which a new order should be placed t… #
In warehouse automation, the reorder point is calculated based on factors such as lead time, demand variability, and safety stock levels. By setting an appropriate reorder point, warehouses can prevent stockouts, avoid excess inventory, and maintain optimal stock levels.
Stock Keeping Unit (SKU) #
Stock Keeping Unit (SKU)
A Stock Keeping Unit (SKU) is a unique code or number assigned to a specific pro… #
SKUs are used to track inventory levels, manage stock movements, and facilitate order fulfillment. In warehouse automation, SKUs play a crucial role in ensuring accurate picking, packing, and shipping of products.
Supply Chain Management (SCM) #
Supply Chain Management (SCM)
Supply Chain Management (SCM) is the management of interconnected businesses inv… #
In warehouse automation, SCM encompasses the planning, execution, and control of all activities related to the movement and storage of goods. SCM aims to optimize the supply chain, reduce costs, improve efficiency, and enhance customer satisfaction.
Warehouse Management System (WMS) #
Warehouse Management System (WMS)
A Warehouse Management System (WMS) is software designed to manage and optimize… #
In warehouse automation, WMS provides functionalities such as inventory tracking, order processing, picking optimization, and labor management. WMS integrates with automated systems to streamline workflows, increase productivity, and improve overall warehouse efficiency.
Automated Storage and Retrieval System (AS/RS) #
Automated Storage and Retrieval System (AS/RS)
An Automated Storage and Retrieval System (AS/RS) is a type of warehouse automat… #
AS/RS typically consists of robotic cranes or shuttles that move along racks to retrieve items and bring them to a picking station. AS/RS helps warehouses maximize storage space, increase picking speed, and reduce labor costs.
Fulfillment Center #
Fulfillment Center
A fulfillment center is a warehouse or distribution center where goods are recei… #
In warehouse automation, fulfillment centers are equipped with automated systems such as conveyor belts, sorting machines, and robotic pickers to streamline order fulfillment processes. Fulfillment centers play a crucial role in ensuring timely delivery and customer satisfaction.
Goods #
to-Person (G2P) System
A Goods #
to-Person (G2P) system is a warehouse automation technology that brings items directly to warehouse staff for picking. In a G2P system, goods are stored in automated storage systems and transported to picking stations as needed. This eliminates the need for staff to walk long distances to retrieve items, improves picking efficiency, and reduces picking errors.
Inventory Turnover #
Inventory Turnover
Inventory turnover is a measure of how quickly a company sells and replaces its… #
It is calculated by dividing the cost of goods sold by the average inventory level. High inventory turnover indicates efficient inventory management, while low turnover may indicate excess inventory or slow-moving products. In warehouse automation, inventory turnover is a key metric used to assess operational efficiency and profitability.
Order Picking #
Order Picking
Order picking is the process of selecting and retrieving items from inventory to… #
In warehouse automation, order picking is a critical operation that impacts overall efficiency and customer satisfaction. Automated systems such as pick-to-light, voice picking, and robotic pickers are used to optimize order picking processes, increase accuracy, and reduce picking times.
Pick #
to-Light System
A Pick #
to-Light system is a warehouse automation technology that uses light displays to guide warehouse staff to the location of items to pick. Pick-to-Light systems are mounted on shelves or bins and illuminate to indicate the quantity of items to pick. By using visual cues, Pick-to-Light systems help reduce picking errors, improve picking speed, and enhance overall order accuracy.
Return Merchandise Authorization (RMA) #
Return Merchandise Authorization (RMA)
Return Merchandise Authorization (RMA) is a process used to authorize the return… #
In warehouse automation, RMAs are managed through automated systems that track returns, process refunds or exchanges, and update inventory records. By automating the RMA process, warehouses can streamline return handling, improve customer service, and reduce processing times.
Slotting Optimization #
Slotting Optimization
Slotting optimization is the process of organizing and allocating inventory in a… #
In warehouse automation, slotting optimization involves analyzing factors such as SKU velocity, order frequency, and storage requirements to determine the optimal placement of items. By implementing slotting optimization, warehouses can reduce travel times, improve picking accuracy, and increase storage capacity.
Sortation System #
Sortation System
A sortation system is a warehouse automation technology that sorts and routes it… #
Sortation systems typically use conveyors, diverters, and barcode scanners to separate items based on their destination or characteristics. By automating the sorting process, warehouses can improve order accuracy, reduce processing times, and enhance overall operational efficiency.
Throughput #
Throughput
Throughput is the rate at which a warehouse processes and moves goods through it… #
It is calculated by dividing the total number of items processed by the time taken to process them. Throughput is a key metric used to assess warehouse efficiency, productivity, and capacity. In warehouse automation, increasing throughput is a primary goal to improve operational performance and meet customer demands.
Unit Load #
Unit Load
A unit load is a pallet, container, or other packaging unit used to transport an… #
Unit loads are standardized to facilitate handling, storage, and transportation of products. In warehouse automation, unit loads are often used with automated systems such as palletizers, conveyors, and AS/RS to streamline material handling processes, increase efficiency, and reduce labor costs.
Vertical Lift Module (VLM) #
Vertical Lift Module (VLM)
A Vertical Lift Module (VLM) is a type of automated storage system that consists… #
VLMs maximize vertical storage space and provide fast access to stored items. In warehouse automation, VLMs are used to store and retrieve items efficiently, reduce picking times, and optimize storage density.
Zone Picking #
Zone Picking
Zone picking is a method of order picking where warehouse staff are assigned spe… #
In warehouse automation, zone picking is facilitated by automated systems that transport items between zones and consolidate them for shipping. Zone picking helps increase picking efficiency, reduce travel times, and improve order accuracy by dividing the picking process into manageable tasks.