Plain-language definitions of the terms every apparel, footwear, and home goods brand needs to know — from EDI and PLM to ATP and retail chargebacks.
Apparel ERP
Apparel ERP is enterprise resource planning software built specifically for fashion businesses. It handles style-color-size inventory, seasonal collections, production, wholesale orders, and retail compliance in one connected system instead of forcing brands to stitch together generic tools.
Electronic Data Interchange is the standard way retailers and suppliers exchange business documents computer-to-computer. It replaces emails and PDFs with structured messages like purchase orders, ship notices, and invoices so orders flow straight into your ERP.
An Advance Ship Notice is an electronic document that tells a retailer exactly what is in an outgoing shipment before it arrives. It includes carton contents, quantities, and tracking information so the receiving dock can check in inventory quickly and accurately.
Product Lifecycle Management software helps fashion brands develop products from first sketch through final production. It keeps design files, tech packs, sample approvals, material specs, and vendor communication in one place so nothing gets lost between seasons.
A style-color-size matrix is the grid fashion brands use to track every variation of a single product. One style might come in six colors and twelve sizes, so the matrix shows exactly how many units exist at each intersection to prevent overselling or stockouts.
A GS1-128 label is a barcode shipping label that carries standardized data like purchase order number, carton contents, and destination. Major retailers require it so their warehouses can scan and receive shipments without manual data entry.
The 850 is the EDI transaction set for a purchase order. When a retailer sends an 850, it is telling the supplier what products they want, in what quantities, at what prices, and where and when to ship them.
The 856 is the EDI transaction set for an Advance Ship Notice. It tells the buyer that an order has shipped and describes the contents, carrier, and tracking details for each carton or pallet.
A routing guide is a retailer’s rulebook for how suppliers must ship orders. It covers carrier choices, labeling, packing, delivery windows, and penalties for non-compliance, so brands must follow it carefully to avoid chargebacks.
Landed cost is the true total cost of getting a product to your warehouse, not just the price from the factory. It adds freight, duties, insurance, tariffs, and handling so you know the real margin on every unit you sell.
Open to Buy is the budget a retailer has left to purchase new inventory without overstocking. It compares planned sales, existing stock, and on-order goods to show how much can still be bought for the season.
Available to promise is the inventory you can reliably commit to a customer right now. It looks at current stock, incoming purchase orders, and existing commitments so sales teams do not promise units that are already spoken for.
Wholesale EDI is the use of Electronic Data Interchange specifically between brands and their wholesale or retail partners. It automates large-volume orders, ship notices, and invoices so both sides stay in sync without spreadsheets.
A retail chargeback is a financial penalty a retailer charges a supplier for not following their rules. Common reasons include late shipments, incorrect labels, wrong carton counts, or missing ASNs, and they can quickly eat into margins.
A Stock Keeping Unit is the unique identifier a company uses to track one specific product variation. In apparel, each color and size combination of a style usually gets its own SKU so inventory can be counted and sold accurately.
A Universal Product Code is the barcode standard retailers use to identify products at checkout and in the warehouse. Apparel brands assign UPCs to each style, color, and size so stores can scan and track them consistently.
Third-Party Logistics is a company that handles warehousing, packing, and shipping on behalf of a brand. Fashion businesses often use 3PLs to fulfill ecommerce orders while keeping wholesale shipments in their own warehouse.
A Bill of Materials is the complete list of raw materials and components needed to make a finished product. In apparel, it includes fabric, trims, labels, buttons, and thread, along with quantities and suppliers for each.
A Warehouse Management System is software that controls day-to-day warehouse operations. It directs receiving, put-away, picking, packing, and shipping so inventory moves accurately and orders go out on time.
Direct-to-Consumer means selling products straight to shoppers rather than through wholesalers or retailers. Many apparel brands now run both wholesale and DTC channels from the same inventory pool.
A pre-pack is a fixed assortment of sizes packed together by the factory, such as two smalls, four mediums, and two larges. Retailers often order by the pre-pack rather than by individual size, so ERP systems must track both pack and unit quantities.
A Distribution Center is a large warehouse that receives, stores, and ships products to stores or directly to customers. Retailers and brands use DCs to move inventory closer to demand and speed up fulfillment.
Ai2000 (formerly A2000 Software) is the AI-driven ERP built for apparel, footwear, and home goods — with native EDI, PLM, warehouse management, and analytics in one platform.