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Supply Chain & Logistics Glossary

Supply chain and logistics professionals speak their own language. Here’s your guide to cracking the code.

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What Are Palletizers and Depalletizers?

Palletizers are machines or systems that stack products or containers onto pallets for efficient storage or transportation. Depalletizers conduct the reverse process. They are machines that remove items from pallets.

What is the Pareto Principle (80/20 Rule)?

The Pareto Principle, also known as the 80/20 rule, is the concept that roughly 80% of effects come from 20% of causes. In supply chain, manufacturing and business, it often refers to focusing efforts on the most critical issues.

What Is Peak-to-Peak Performance?

Peak-to-Peak Performance is the ability of an enterprise to continuously reinvent itself to reach higher levels of performance without descending into unprofitable “valleys.”

What Is a Perfect Order?

A perfect order is an order that your enterprise delivers accurately, on time and without damage or defects.

What Is Pick & Pass Order Picking?

Pick & pass order picking is a method where order pickers move along a designated route, picking items for multiple orders as they pass storage locations.

What Is Pick-To-Light?

What is pick-to-light is a system that uses lights to direct workers (or robots) to pick items from shelves to fulfill orders. A typical light-based picking system uses different colored LED lights along with a series of letters and numbers.

What Is Pick-To-Line?

Pick-to-line is a picking method that utilizes direct workers or robots to pick items directly into shipping cartons or containers on a conveyor line.

What Is Piggyback?

Piggyback is a transportation mode that loads truck trailers onto railcars for long-distance transport.

What Is a Pill System?

A pill system is a storage and retrieval system that stores items in cylindrical containers (pills) and transports the items to picking stations.

What Is Procurement?

Procurement is the overall process of acquiring goods, services or raw materials for an organization. Procurement is a combination of sourcing and purchasing.