Glossary: Intralogistics
Focus on Software Solutions
This glossary provides an overview of key terms in intralogistics with a particular focus on software-driven solutions.
A
Agentic AI
A term for AI systems that do not just answer but plan and carry out intermediate steps on their own — several data queries in sequence, for instance, in order to answer one question. This requires regulated access to the systems that hold the data; the Model Context Protocol (MCP) is one standard that defines such access. In intralogistics it means the assistant works out for itself which queries a question like “Why wasn’t order 4711 completed yesterday?” requires, rather than someone defining that in advance. View the identpro MCP access to warehouse data
AI (Artificial Intelligence)
The use of algorithms and machine learning to optimize warehouse processes, forecast demand and control autonomous systems. In intralogistics, AI is used primarily for order optimization: based on real-time position data from all vehicles, the AI algorithm continuously calculates the optimal distribution of open transport orders: Which vehicle is closest, which route is most efficient, which orders can be combined?
The result: empty runs are structurally avoided, the fleet is used more efficiently and throughput increases — without additional staffing. At identpro, AI-based order optimization is an integral part of the Warehouse Execution System. View the identpro Warehouse Execution System
AMR (Autonomous Mobile Robot)
A self-driving mobile robot used for moving materials within warehouses or production facilities.
API (Application Programming Interface)
An interface enabling the automated exchange of data between various IT systems across a supply chain. It connects systems like ERP, WMS (Warehouse Management System), or TMS (Transport Management System) to enable seamless communication between suppliers, logistics providers, and customers. Real-time information on inventory, shipment tracking, or production capacity can be exchanged, making processes more efficient and transparent. This improves responsiveness to demand changes and optimizes overall supply chain planning.
APS (Advanced Planning and Scheduling)
Software used for detailed production planning and control, taking capacities and delivery times into account.
ASN (Advanced Shipping Notice)
Electronic pre-advice of an incoming shipment. Contains detailed information about the shipment’s contents, packaging, quantities, and expected delivery time, optimizing inbound planning and goods receiving.
B
BOM (Bill of Materials)
A structured list of all components and materials required to manufacture or assemble a product, including quantities, material numbers, and subassemblies. Essential for production planning, procurement, and inventory control.
Booking Error
An incorrect or missing recording of a warehouse movement in the warehouse management or ERP system. Booking errors typically arise from manual barcode scanning under time pressure, damaged labels or unstable Wi-Fi connections in the warehouse. Every booking error creates an inventory discrepancy. Accumulated over time, this results in a WMS or ERP that reflects a warehouse reality that no longer exists.
C
Cloud WMS
Cloud-based warehouse management systems that offer scalable infrastructure and mobile accessibility.
D
Digital Twin
Real-time virtual representation of a physical warehouse or production environment. Unlike static warehouse plans or system views, a digital twin is updated continuously and automatically. It reflects the actual warehouse reality at every moment — not the planned target state.
In the context of intralogistics, this means: every pallet, every container and every item has a digital counterpart with its current 3D position, its load ID and its movement history. This twin is updated automatically with every warehouse movement and synchronized with the ERP or WMS system — without manual scanning, without time delay. The result is 100% inventory accuracy and complete warehouse transparency in real time.
E
Empty Run
A trip made by a forklift truck without a transport order or without a load. Empty runs arise when travel orders are not distributed intelligently based on the actual positions of vehicles, but according to fixed rules or manual dispatching. In many warehouses, a significant proportion of all trips is structurally avoidable. AI-based order optimization based on real-time position data reduces empty runs by up to 30% for identpro customers. How empty runs are reduced: Read more
ERP (Enterprise Resource Planning)
Integrated enterprise software used to manage business processes including inventory, logistics, and finance.
EWM (Extended Warehouse Management)
Advanced warehouse management software, e.g., from SAP, used to control complex logistics operations.
F
FIFO (First In, First Out)
Inventory method where the first items stored are also the first to be retrieved – preventing spoilage or obsolescence. Commonly used for perishable or time-sensitive goods.
Fleet Management
Coordination and optimization of the use of vehicles or robots in intralogistics via software solutions.
G
GRN (Goods Receipt Note)
Document (physical or digital) confirming receipt of goods: includes details such as quantity, condition, and conformity with the purchase order. Basis for inventory updates, quality checks, and claims processing.
Guidance
In the context of software, this refers to strategic support in selecting, evaluating, and implementing appropriate systems. It helps companies navigate the complex software landscape by providing structured decision-making support. This includes:
- Requirement analysis: Identifying specific business needs.
- Solution comparison: Assessing functions, integration capabilities, and costs.
- Best practices & recommendations: Aligning with proven methods and market trends.
Guidance ensures companies choose solutions that align with their long-term goals.
H
HDL (Human Driven Lift Truck)
Manually operated industrial trucks, such as forklifts.
I
Identification Technologies
Systems like RFID or barcode scanning used for automated tracking of goods movements.
Inventory Discrepancy
A discrepancy between the warehouse inventory recorded in the system and the inventory physically present. Inventory discrepancies almost always arise from manual interventions between a warehouse movement and the corresponding system booking — such as forgotten bookings, incorrect scans or transfer errors into the ERP. They lead to incorrect allocation, search times and delivery delays. They cannot be permanently resolved through more frequent stocktakes, but only through the automatic capture of all warehouse movements in real time. Causes and solutions: Read more
Inventory Management
Systematic recording, control, and optimization of warehouse inventory to increase efficiency.
IoT (Internet of Things)
Networking of devices and sensors to enable data-driven process optimization in logistics. ry to increase efficiency.
K
KPI (Key Performance Indicator)
Metrics used to measure efficiency and performance.
L
Laser Localization
A method for precise positioning of vehicles or objects within a defined warehouse environment. Laser beams are emitted, reflected by surrounding structures, and detected by sensors. By comparing the reflected signals to a digital map, the system can determine the exact real-time position without the need for floor markings or GPS.
LIFO (Last In, First Out)
Inventory method where the most recently stored goods are the first to be retrieved. Useful for block storage and non-perishable goods – easy to implement but lacks age tracking.
M
MCP (Model Context Protocol)
An open, vendor-neutral standard for how AI systems access software and the data it holds. Instead of building a separate interface for every tool, assistants such as ChatGPT or Claude connect through named, documented functions. The standard has been maintained by the Agentic AI Foundation under the umbrella of the Linux Foundation since December 2025. In intralogistics, MCP allows read-only access to the warehouse data in a Warehouse Execution System, with no database access and no copy of the data.
View the identpro MCP access to warehouse data
MES (Manufacturing Execution System)
Software for real-time control and monitoring of manufacturing processes.
O
OEE (Overall Equipment Effectiveness)
A metric used to measure the overall effectiveness of equipment in production and logistics.
OLE (Overall Logistics Effectiveness)
A comprehensive metric for assessing a company’s logistics performance. It combines factors such as timeliness, quality, and productivity of logistics processes. The goal is to identify optimization potential and improve efficiency across the entire supply chain. fectiveness of equipment in production and logistics.
P
PO (Purchase Order)
Formal order issued to a supplier, including complete details on items, quantities, pricing, delivery date, and location. Legally binding and a key reference for procurement, receiving, and invoicing.
R
RTLS (Real-Time Locating System)
Technology for the precise real-time determination of the position of goods, vehicles or employees in indoor or outdoor environments. RTLS systems use various transmission technologies such as LiDAR, UWB, RFID or BLE to capture position data every second and transfer it to a control system.
In warehouse operations, RTLS forms the technological foundation for the digital twin: every vehicle movement is captured in real time, linked to goods positions and fed back into the ERP or WMS. identpro uses LiDAR-based RTLS without additional infrastructure, without tags on the goods, with an accuracy of ±5 cm.
→ View the identpro RTLS technology
Real-Time Data Processing
A general term for systems that process data immediately as it is received.
RFID (Radio Frequency Identification)
Technology for wireless identification and tracking of objects.
RPA (Robotic Process Automation)
Software-based automation of repetitive processes in intralogistics.
S
SAP EWM / WM (Warehouse Management)
SAP EWM is the extended warehouse management module within SAP S/4HANA and SAP ERP. It controls complex logistics processes at handling unit level — from goods receipt and putaway through to picking and dispatch. Compared to its predecessor SAP WM, EWM offers significantly more granular process control and deeper integration with production planning.
SAP WM is being phased out: the compatibility phase in S/4HANA ended on 31 December 2025. Companies must migrate to EWM by 2027 at the latest, or implement it directly from scratch. A decisive success factor for SAP EWM is the quality of the warehouse data. EWM plans and controls excellently — but depends on reliable real-time data from the warehouse. A Warehouse Execution System (WES) delivers this data automatically and closes the structural gap between SAP planning and warehouse reality.
→ Why valid warehouse data is the essential prerequisite for SAP EWM: Read more
→ How to operate SAP EWM® scan-free: Read more
Scanner gate
Astationary scanning unit used for automated identification and tracking of goods, pallets, or load carriers. Using barcodes, RFID, or other sensor technologies, it enables contactless and error-free tracking of goods movements—enhancing transparency and efficiency.
Slotting
Algorithm-based optimization of item placement in warehouses to reduce travel paths and increase picking efficiency.
SCM (Supply Chain Management)
Software-supported planning and management of the entire supply chain.
SLS (Forklift Guidance System)
Software solution for intelligent routing and task assignment for forklifts. It minimizes idle time, improves route efficiency, and dynamically distributes tasks based on real-time data and priorities.
S&OP (Sales and Operations Planning)
A company-wide planning process that aligns sales, production, procurement, and finance to synchronize supply and demand. The goal is to avoid shortages, optimize inventory, and improve service levels.
Supply Chain
A network of companies, people, activities, information, and resources involved in producing and delivering a product. It includes all steps from raw materials to production, warehousing, and distribution to the end customer. Effective supply chain management coordinates these processes, reduces costs, and ensures high delivery reliability.
SKU (Stock Keeping Unit)
Unique product identifier for a specific item variant e.g., size, color, or packaging unit. Essential for accurate inventory tracking and product-level reporting.
T
TMS (Transport Management System)
Software for planning, executing, and optimizing transportation processes.
Track & Trace
Real-time tracking of shipments and goods movements across the supply chain.
U
UWB (Ultra Wideband)
High-precision radio technology for real-time localization of objects in the warehouse. Unlike other locating technologies, UWB enables centimeter-level accuracy with extremely low latency. It is ideal for dynamic warehouse environments and supports use cases like automated goods tracking, vehicle navigation, or safety zone management.
V
VDA5050
An open communication standard for the control of automated guided vehicles (AGVs) and autonomous mobile robots (AMRs). It defines standardized interfaces between vehicles from different manufacturers and higher-level control systems such as WES or WMS. VDA5050 enables manufacturer-independent mixed operations of AMRs and manually operated forklift trucks within a single system, ensuring investment security when automating warehouse processes.
W
WES (Warehouse Execution System)
Software for real-time execution of all warehouse operations. Unlike traditional WMS solutions, WES operates closer to the shop floor and handles tactical task allocation for humans and machines. It uses real-time data from RTLS and IoT sensors to dynamically orchestrate warehouse resources—independent of vehicle type (e.g., AMRs, HDL). The goal is maximum efficiency and transparency in daily warehouse operations. View the identpro Warehouse Execution System
WMS (Warehouse Management System)
Software for managing and controlling warehouse inventories, inbound and outbound processes, and order picking. A WMS plans and manages warehouse processes on the basis of master data and bookings however, it depends on manual data entry by employees and reflects warehouse reality only as accurately as the bookings it receives.
A Warehouse Execution System (WES), by contrast, operates closer to the shop floor: it captures warehouse movements automatically in real time, distributes orders using AI-based optimization and continuously synchronizes warehouse reality with the WMS or ERP, without manual scanning.
→ WMS vs. WES: View the Warehouse Execution System
Workflow Automation
Digitization and optimization of logistics workflows to improve process efficiency.
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