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WMS key concepts and glossary

A reference guide to stock statuses, location types, job types, tracking types, allocation strategies, and other key WMS terms.

6 min readUpdated October 20, 2018

This guide explains the core terms and concepts used throughout Starshipit WMS. If you are new to WMS — or explaining it to someone on your team — this is a good place to start.

Stock statuses

These four figures appear on the inventory dashboard for every SKU:

Status What it means
On hand Total physical quantity in the warehouse across all locations.
Committed Quantity required to fulfil all open orders that are not yet shipped. Stock is committed as soon as an order arrives in WMS.
Available Stock that can still be sold or allocated: On hand − Committed. A negative available figure means demand exceeds current stock.
Incoming Quantity on open purchase orders that has been ordered but not yet received.
Allocated Stock formally reserved in active pick jobs for orders that have been released. An order may be committed but not yet allocated if it has not been released to the warehouse.

Order statuses

Orders in WMS move through the following statuses:

Status What it means
PENDING Order has arrived from Starshipit but has not yet been released to the warehouse.
RELEASED Order has been released. Stock is allocated and pick jobs have been created.
PARTIALLY_SHIPPED Some items have been shipped; others are still outstanding.
SHIPPED Order has shipped in full. Stock movements have been finalised.

Location types

Location types tell WMS how each physical area in your warehouse is used:

Type Used for
Pick Face Forward-picking bins for fast, efficient picking. Usually holds smaller quantities and is restocked from bulk when it runs low.
Bulk Storage Reserve stock, typically in higher shelves or pallet areas, used to replenish pick faces.
Staging Dock Where inbound stock lands before being put away to final locations.
Packing Bench Where orders are packed and shipping labels are printed.
Equipment A picker's cart, trolley or tote. Stock moves into equipment locations during picking, before being staged to a bench.
Returns Holding area for items returned by customers.
Damaged Items confirmed as unsellable, pending write-off or disposal.
Quarantine Items under investigation (quality issue, recall, supplier claim, etc.).
Quality Control Inspection and verification areas.
Shipping Dock Dispatch areas for outbound parcels.

Tracking types

Each product has one of three tracking types, which controls what data is required when stock is received, picked or adjusted:

Type How it works
Standard Inventory tracked by quantity only. No batch or serial identifiers required. Most products use this.
Batch Stock tracked by lot or batch number. Used for products with expiry dates (food, pharmaceuticals, cosmetics) or traceability requirements. WMS prompts for a batch number during receiving and optionally records an expiry date.
Serial Each individual unit has a unique serial number. WMS requires one serial number per unit during receiving and tracks movements per serial. Used for high-value electronics, regulated goods, or items requiring unit-level traceability.

Allocation strategies

Allocation strategies control which specific stock is reserved when an order is released. Configured per product:

Strategy How it works
FIFO — First In, First Out Allocates the oldest stock first (based on when it was received). The default setting and suits most non-perishable products.
LIFO — Last In, First Out Allocates the newest stock first. Used in specific scenarios where newer stock is more accessible.
FEFO — First Expiry, First Out Allocates stock with the nearest expiry date first. Used with batch-tracked products to reduce waste from expired stock.
LEFO — Last Expiry, First Out Allocates stock with the furthest expiry date first. Used when you intentionally want to ship the longest-dated stock first.

Job types

Jobs are tasks created by WMS and assigned to warehouse staff. Each job type corresponds to a specific workflow:

Job type What it does
Pick job Instructs a picker to collect specific items from specific locations. Created when an order is released or when using expedited fulfilment.
Batch pick job A single job covering picks for multiple orders. Reduces warehouse travel by combining similar picks.
Pack job Ready for a packer to verify items, box them, and generate a shipping label. Created after picking is complete.
Putaway job Moves received stock from a staging area to final storage locations. Created after stock is received into a staging dock.
Replenishment job Moves stock from bulk storage to a pick face when that location runs low. Created automatically when capacity rules trigger, or manually from the replenishment dashboard.
Kitting job Assembles component SKUs into a bundle product. Created when a require-stock bundle needs restocking.
Cycle count job A targeted inventory count for specific SKUs or locations. Created from the Cycle Count section.

Bundle types

WMS supports two types of bundle products:

Type How it works
Exploding bundle The bundle SKU breaks into its component SKUs when an order is processed. WMS picks and tracks individual components. Inventory is held at the component level.
Require-stock bundle The bundle SKU has its own on-hand inventory. It behaves like a physical item on the shelf. When bundle stock is needed, a kitting job is created to assemble it from components.

Purchase order statuses

Status What it means
DRAFT PO is being prepared and not yet issued to the supplier.
CREATED PO has been issued and is awaiting delivery.
PARTIALLY_RECEIVED Some lines or quantities have arrived; more are still expected.
RECEIVED All lines and quantities have been fully received.

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