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The world of logistics is complex, and some concepts can be difficult to grasp. Being in control of your logistics means being more independent and also understanding your environment and the associated concepts.

Find a logistics glossary here, as well as answers to frequently asked questions. Yours might be there!

The WMS universe

A warehouse management system (WMS) is software that helps businesses manage and control the daily operations of a warehouse from the arrival of goods and materials at a distribution or fulfillment center until their departure.
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The price of a Warehouse Management System (WMS) can vary considerably, ranging from €25,000 to €250,000 (or even more). The cost of WMS software depends on many factors, including the required functionalities , the size of the warehouse , and the complexity of logistics operations.

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Logistics traceability software is often a feature integrated into a WMS (Warehouse Management System) . The WMS, in turn, is a broader system that manages all warehouse operations. Traceability focuses specifically on tracking the movement and status of products at each stage of the supply chain.

WMS software improves returns management through:

  • Real-time traceability of returned products,
  • Optimization of reception and sorting processes,
  • Storage management and inventory management ,
  • Error prevention using the Poka Yoke principle.
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In on-premise , the software is installed on the company's servers , the license is purchased, and the company manages the infrastructure. In SaaS , the software is hosted by the provider , accessible by subscription, without any initial hardware investment.

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initial cost is drastically lower (OpEx vs. CapEx). Over the very long term (10-15 years), the cumulative cost of subscriptions may seem high. However, a complete TCO analysis for on-premises deployments must include the salaries of dedicated IT staff, the costs of replacing hardware every 5 years, and expensive upgrade projects. By including all these costs, SaaS very often proves to be more advantageous .

When you have strong requirements: strict data localization, minimized latency in an automated warehouse, extreme customization, already available IT infrastructure, or highly regulated sector.

Much faster than an on-premise WMS. Since there is no hardware infrastructure to buy, deliver and install, a SaaS deployment can be done in a few weeks, compared to several months for an on-premise project.

For very small-scale operations, it's theoretically possible to do without one, but it quickly becomes unmanageable and prone to errors. For professional, reliable, and efficient practices, a WMS (Warehouse Management System) is essential . It ensures instant product identification, routing to the correct dock, real-time traceability, and flow synchronization, which are the very essence of cross-docking.

This is a software feature that integrates chemical storage rules . It prevents the WMS from assigning a storage location to a product if it is incompatible with materials already present nearby. It provides a safety feature to prevent dangerous chemical reactions.

Although not legally mandated like an operating permit, a WMS has become practically indispensable for ensuring compliance with regulations (Seveso, ICPE). In the event of an inspection or incident, proving due diligence without a tool like a WMS is extremely difficult, if not impossible.

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The WMS software acts as the "brain." Based on the dimensions and weight of each item in an order (master data), it calculates the smallest and most suitable carton before (packing calculation). It then instructs the operator or packaging machine accordingly, eliminating "empty space" and reducing consumable and transportation costs.

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The WMS uses ABC classification (often enhanced by turnover, known as ABC/D) to optimize slotting . It places high-turnover items (even if they are of low value, Class CD) in the "Golden Zone" of the warehouse to minimize operator travel time during order picking.

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A Warehouse Management System (WMS) is warehouse management software that focuses on operations inside the warehouse, such as inventory management, picking, slotting, order preparation, and storage. A Yard Management System (YMS) is a complementary system, usually a module integrated with the WMS, that manages the flow of goods outside and in the immediate vicinity of the warehouse: trailers, drivers, loading docks, and loading bays.

No. Generative AI complements and enhances existing WMS solutions. It makes them smarter, more accessible, and more responsive, but the core functionality (inventory, location, flow, and transportation management) remains within the WMS software. AI is an "intelligent overlay," not a replacement.

It depends on the nature of your WMS solution. Modern, scalable solutions, including SaaS WMS and SaaS logistics solutions, are generally designed to be open (via APIs) and easily integrate generative or conversational AI modules. Legacy on-premises systems may require significant upgrades or the deployment of a different WMS platform. Assessing AI compatibility should be a key element of the WMS specifications for any future project.

The world of Supply Chain

Traditional logistics manages the flow of products to the customer. Reverse logistics , or returns logistics, handles the return flow of goods: defective, non-compliant, recyclable, or end-of-life products. It encompasses all the processes that manage the flow of products from their point of consumption back to their point of origin.

A sustainable supply chain is one that integrates environmental, social, and economic criteria into all its decisions. Its goal is to minimize its negative impact on the environment (CO2 emissions, waste, resource depletion) while remaining economically viable and socially responsible.

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" Green logistics" focuses primarily on the environmental aspects of logistics activities (transport, storage, packaging). " Sustainable supply chain " is a broader concept that encompasses green logistics but also adds social/ethical dimensions (working conditions, fair trade) and economic dimensions (long-term profitability, resilience) across the entire value chain, from raw material sourcing to the end customer and recycling.

The circular economy in logistics aims to move beyond the linear "produce-consume-discard" model by creating value loops. This involves optimizing the flow of materials and products to minimize waste and maximize the reuse, repair, and recycling of products and packaging. Reverse logistics (or returns management) is a central element of this approach.

The first step is internal. Before even considering changing carriers or TMS software, analyze your warehouse performance . Measure your order preparation cycle time, your picking error rate, and the reliability of your inventory management. Optimizing these indicators with high-performing WMS software will have the most immediate and significant impact on your last mile.

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Its high cost (up to 53% of total costs) stems from its low density . A long-haul truck transports thousands of packages between two points, thus diluting the costs. The last mile, however, involves numerous stops to deliver one or two packages at a time , multiplying the labor, fuel, and time costs per package.

No, not necessarily. A multi-factory account (MFC) is particularly relevant for companies with a high volume of orders in specific urban areas and for fast-moving products. For a company with a geographically dispersed customer base, the investment might not be worthwhile. A detailed analysis of sales data is essential before proceeding.

Cross-docking is a logistics flow where received goods are not stored but immediately transferred to the delivery dock for shipment. A WMS can use ABC classification to trigger this flow : if received goods are a Class A product in high demand and expected for a customer order, the WMS will prioritize cross-docking them.

No, not necessarily. It's particularly effective for high-turnover products (fast-moving consumer goods), perishable goods, press products, promotional items, pre-prepared e-commerce orders, or components for just-in-time production. Low-turnover products or those with unpredictable demand are less suited to this method.

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ROI is calculated by comparing gains to investments.

  • Benefits : Savings on real estate costs (less storage space), reduction in handling and personnel costs related to storage and picking, reduction in stock holding costs, improvement in service quality (shorter lead times).
  • Investments : Cost of the WMS/YMS solution, possible redevelopment of the warehouse, purchase of specific handling equipment, cost of team training and change management.

Yes. A product packaged in a right-sized box has much less room to move around. This drastically reduces the need for cushioning and prevents the product from hitting the sides of the box during transport. Less movement means less vibration, fewer shocks, and therefore a significantly lower breakage rate.

It depends on the sector, the density of your products, but some e-commerce businesses report shipping cost reductions of 10 to 20% on average.

This is a stock classification method based on the Pareto principle (80/20). It divides products into three classes (A, B, C) according to their value (unit cost x sales). Class A (20% of items) represents 80% of the value, allowing management efforts to be focused on the highest-value products.

Absolutely. Returns logistics require a dedicated goods receiving area and specific dock processes. A good YMS allows you to plan and isolate these flows so they don't disrupt standard delivery flows. It can also pre-notify the WMS software when returned goods arrive, allowing the returns team to prepare.

Traditional AI in logistics (Machine Learning, predictive analytics) analyzes existing data to make forecasts (e.g., anticipating demand, optimizing routes). Generative AI (Gen AI) goes further by creating new content . In supply chain management, this translates into the ability to generate complex scenarios (e.g., alternative transportation plans, modeling the impact of a crisis), interpret natural language to interact with WMS software, or create personalized customer messages. It is a creator of solutions, not just an analyst.

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Gen AI, integrated into a WMS solution, improves inventory management in two key ways:

  • Demand forecasting: It uses heterogeneous data (including external data such as social trends) to predict demand more accurately, optimizing inventory turnover and reducing the risk of stockouts or overstocking.
  • Dynamic slotting: It generates in real time the most efficient dynamic slotting plan based on incoming orders (including activity peaks), optimizing picking and palletizing time.

The world of TMS/WMS synchronization

Simply put, a Warehouse Management System (WMS) manages everything that happens inside warehouse walls and Transport Management System (TMS) , on the other hand, manages everything that happens outside , and delivery tracking. The WMS stops at the shipping dock, where the TMS takes over.

Yes, it's entirely possible and even common.

Many companies begin by implementing WMS software to optimize their warehouse management and order preparation. Others, whose business relies heavily on transportation, may prioritize TMS software. However, to achieve a higher level of performance and end-to-end visibility, synchronizing the two systems becomes essential.

No, that's a misconception.

Today, with the rise of SaaS (Software as a Service) solutions and APIs, integration has become much more accessible and affordable for SMEs and mid-sized companies . The benefits in terms of efficiency and cost reduction can be even more significant for medium-sized organizations.

The duration can vary considerably depending on the complexity of your processes, the technologies chosen (unified suite vs. integration of heterogeneous systems), and the resources allocated. A project can last from a few weeks for standard integration using existing connectors to several months for a highly complex custom project . A realistic timeline will be provided after the initial audit and scoping phase.

The cost is variable and depends on several factors : the cost of software licenses (WMS/TMS), the cost of integration services (if you use an external integrator), any specific development work, and internal costs related to project management and training. However, keep in mind that this cost should be considered an investment to be evaluated in light of the expected ROI (savings on transportation, productivity gains, etc.).

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The WMS informs the TMS when orders are ready for shipment (order picking complete). The TMS then schedules the transport and communicates the estimated time of arrival (ETA) to the YMS/Dock Scheduling System. This information allows the correct dock to be allocated at the right time, facilitates cross-docking, and optimizes last-mile delivery.

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Prompt-driven (or natural language instruction-driven) operation is the application of conversational AI to a TMS (Transport Management System) software. Instead of navigating complex menus, the user formulates a simple query , such as "Find the most economical carrier for tomorrow's deliveries while minimizing CO₂ emissions," for example.

The world of picking

When order volume is high, the warehouse is large, the products are bulky/fragile, or labor and error costs become critical.

The first step is often organizational. Before any technology is implemented, ensure your warehouse is well-organized . Implement an ABC classification system for your products and organize your storage accordingly (the "slotting" method). Furthermore, using a Management System) to optimize picking lists can reduce distances traveled by 10 to 20%.

The return on investment (ROI) varies considerably depending on the technology chosen and the size of the warehouse. For systems like voice picking or pick-to-light , the ROI is often seen between 12 and 24 months . For more complex systems like AMR robots , the investment is higher, but the productivity gains are significantly greater, so the ROI is generally between 3 and 5 years .

Absolutely. It's actually a very relevant approach. A warehouse can use a "Goods-to-Man" solution with mobile robots for its Class A (high-turnover) products, voice picking for aisles of Class B and C products, and a simple manual process for very large or slow-moving items. It's the role of the WMS platform to manage this heterogeneity and assign the right task to the right resource.

Glossary of logistics and supply chain

Storage location in a pallet rack/shelf.

A method for ranking a repository in descending order of outputs. The repository is thus divided into 3 groups:

  • Group A : composed of the references constituting 80% of the outputs.
  • Group B : composed of references constituting 15% of outputs.
  • Group C : composed of references constituting 5% of releases.

This analysis helps to identify references that deserve special attention.

The container is the stock item created upon receipt and containing 1 to N items of varying quantities from 1 to N batches. It always has an SSCC label identifying it.

A container holds stock. It can be moved, reserved, addressed… Moving, addressing, or reserving the container directly enables the reservation, movement, or addressing of its contents.

For example : A single-reference pallet will be considered as a container.

It is the action of moving goods from the arrival docks to the departure docks, without going through the stock.

This is the company that holds the goods. It is the custodian of the stock. The custodian receives its goods from suppliers and delivers them to the end customers (Third Parties).

For example: A logistics provider works on behalf of several depositors and delivers to the end customers of its depositors.

This is the difference between the physical inventory and the computerized inventory

A stock management rule allowing the management of products with a use-by date.

A stock management rule in which we release the products that arrived earliest first.

An operation consisting of stacking containers.

A stock management rule in which we release the latest-entered products first.

It is the act of physically reserving goods on behalf of orders.

Physical reservation reserves a specific quantity of items at a given address.

Deliverability enables the generation of replenishment picking, picking slips, etc

A logistics management system for products that are collected by the company. This can include recycling, recovery, and other forms of product returns from the customer to the producer.

This is the physical warehouse where the logistics service is carried out.

The vague mode is a preparation method which consists of collecting the items anonymously (not linked to the notion of order), then packing them.

Wave mode is a two-step preparation mode.

An order authorizing a manufacturing workshop to produce parts.

A type of order preparation in which the prepared UVs (sales units) are directly placed in their parcels.

Retrieving the UVs (sales units) from their storage unit to prepare an order.

A type of order preparation in which the prepared UVs (sales units) are only placed in their packaging at the end of the order preparation process.

Serial Shipping Container Code.

The unique identification number of a pallet.

This is a support used for shipping. It can be a pallet, or a package assembled during preparation. It can also be a container entirely reserved for the order. In this last case, the container becomes the support.

A wave defines a list of orders selected during the deliverability process to be put into preparation.

Bulk is the opposite of containerized mode and qualifies a quantity of an item from a specific batch.

Bulk stock does not directly correspond to a stock item. The reference must always be specified, as well as the quantity and address of the bulk stock that you wish to move, reserve, or send.

The concept of VRAC is not associated with any stock identifier. Therefore, there is no associated SSCC.

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