And just what is Poka Yokeanyway? Let Inbound Logistics' glossary of transportation, logistics, supply chain, and international trade terms help. A classification of items in an inventory according to importance defined in terms of criteria such as sales volume and purchase volume. Classification of a group of items in decreasing order of annual dollar volume or other criteria. This array is then split into three classes called A, B, and C. See Activity-Based Costing ABC.
An inventory control approach based on the ABC volume or sales revenue classification of products A items are highest volume or revenue, C - or perhaps D - are lowest volume SKUs.
In cost management, a representation of resource costs during a time period that are consumed through activities and traced to products, services, and customers, or to any other object that creates a demand for the activity to be performed. In cost management, a system that maintains financial and operating data on an organization's resources, activities, drivers, objects and measures.
ABC Models are created and maintained within this system. See Activity-Based Management ABM. See Activity-Based Planning ABP. Demand in any period that is outside the limits established by management policy. This demand may come from a new customer or from existing customers whose own demand is increasing or decreasing. Care must be taken in evaluating the nature of the demand: Is it a volume change, is it a change in product mix, or is it related to the timing of the order?
In cost management, an approach to inventory valuation in which variable costs and a portion of fixed costs are assigned to each unit of production. The fixed costs are usually allocated to units of output on the basis of direct labor hours, machine hours, or material costs.
Accelerated Commercial Release Operations Support System ACROSS: A Canada Customs system to speed the release of shipments by allowing electronic transmission of data to and from Canada Customs 24 hours a day, 7 days a week.
Acceptable Quality Level AQL: In quality management, when a continuing series of lots is considered, AQL represents a quality level that, for the purposes of sampling inspection, is the limit of a satisfactory process average.
In quality management, a specific plan that indicates the sampling sizes and the associated acceptance or non-acceptance criteria to be used. In quality management, 1 A number used in acceptance sampling as a cut off at which the lot will be accepted or rejected.
For example, if x or more units are bad within the sample, the lot will be rejected. The entire lot may be accepted or rejected based on the sample even though the specific units in the lot are better or worse than the sample. There are two types: In attributes sampling, the presence or absence of a characteristic is noted in each of the units inspected. In variables sampling, the numerical magnitude of a characteristic is measured and recorded for each inspected unit; this type of sampling involves reference to a continuous scale of some kind.
A carrier's ability to provide service between an origin and a destination. A carrier's charge for accessorial services such as loading, unloading, pickup, and delivery, or any other charge deemed appropriate. Being answerable for, but not necessarily personally charged with, doing specific work. Accountability cannot be delegated, but it can be shared. For example, managers and executives are accountable for business performance even though they may not actually perform the work.
The value of goods and services acquired for which payment has not yet been made. The value of goods shipped or services rendered to a customer on whom payment has not been received. Usually includes an allowance for bad debts. Certification by a recognized body of the facilities, capability, objectivity, competence, and integrity of an agency, service, operational group, or individual to provide the specific service or operation needed. For example, the Registrar Accreditation Board accredits those organizations that register companies to the ISO Series Standards.
Accredited Standards Committee ASC: A committee of ANSI chartered in to develop uniform standards for the electronic interchange of business documents. The committee develops and maintains US generic standards X12 for Electronic Data Interchange. A place, usually a physical location, used to accumulate all components that go into an assembly before the assembly is sent out to the assembly floor. In quality management, the degree of freedom from error or the degree of conformity to a standard.
Accuracy is different from precision. For example, four-significant-digit numbers are less precise than six-significant-digit numbers; however, a properly computed four-significant-digit number might be more accurate than an improperly computed six-significant-digit number.
See Automated Call Distribution. A communication by a supplier to advise a purchaser that a purchase order has been received. It usually implies acceptance of the order by the supplier. In cost accounting, the cost required to obtain one or more units of an item.
It is order quantity times unit cost. An alert that an MRP or DRP system generates to inform the controller of a situation requiring his or her attention. Goods in active pick locations and ready for order filling.
Work performed by people, equipment, technologies, or facilities. Activities are usually described by the action-verb-adjective-noun grammar convention. Activities may occur in a linked sequence and activity-to-activity assignments may exist.
A resource may be a person, machine, or facility. Activities are grouped into pools by type of activity and allocated to products. It usually has an anticipated duration, anticipated cost, and expected resource requirements. Sometimes major activity is used for larger bodies of work. The process of identifying and cataloging activities for detailed understanding and documentation of their characteristics.
An activity analysis is accomplished by means of interviews, group sessions, questionnaires, observations, and reviews of physical records of work. An approach to budgeting where a company uses an understanding of its activities and driver relationships to quantitatively estimate workload and resource requirements as part of an ongoing business plan. Budgets show the types, number of, and cost of resources that activities are expected to consume based on forecasted workloads.
The budget is part of an organization's activity-based planning process and can be used in evaluating its success in setting and pursuing strategic goals. A methodology that measures the cost and performance of cost objects, activities, and resources.
Cost objects consume activities and activities consume resources. Resource costs are assigned to activities based on their use of those resources, and activity costs are reassigned to cost objects outpputs based on the cost objects proportional use of those activities. Activity-based costing incorporates causal relationships between cost objects and activities and between activities and resources.
In activity-based cost accounting, a model, by time period, of resource costs created because of activities related to products or services or other items causing the activity to be carried out. A set of activity-based cost accounting models that collectively defines data on an organization's resources, activities, drivers, objects, and measures.
A discipline focusing on the management of activities within business processes as the route to continuously improve both the value received by customers and the profit earned in providing that value. AMB uses activity-based cost information and performance measurements to influence management action. Activity-based planning ABP is an ongoing process to determine activity and resource requirements both financial and operational based on the ongoing demand of products or services by specific customer needs.
Resource requirements are compared to resources available and capacity issues are identified and managed. Activity-based budgeting ABB is based on the outputs of activity-based planning. The best single quantitative measure of the frequency and intensity of the demands placed on an activity by cost objects or other activities.
It's used to assign activity costs to cost objects or to other activities. A description of types of activities dependent on the functional area. Product-related activity levels may include unit, batch, and product levels. Customer-related activity levels may include customer, market, channel, and project levels.
A financial ratio used to determine how an organization's resources perform relative to the revenue the resources produce. Activity ratios include inventory turnover, receivables conversion period, fixed-asset turnover, and return on assets. A cost system that collects costs historically as they are applied to production, and allocates indirect costs to products based on the specific costs and achieved volume of the products. The labor, material, and associated overhead costs that are charged against a job as it moves through the production process.
Actual demand is composed of customer orders and often allocations of items, ingredients, or raw materials to production or distribution. Actual demand nets against or consumes the forecast, depending on the rules chosen over a time horizon. For example, actual demand will totally replace forecast inside the sold-out customer order backlog horizon often called the demand time fencebut will net against the forecast outside this horizon based on the chosen forecast consumption rule.
Actual to Theoretical Cycle Time: The ratio of the measured time required to produce a given output divided by the sum of the time required to produce a given output based on the rated efficiency of the machinery and labor operations. Administrative Monetary Penalty System AMPS: A Canada Customs system of monetary penalties that will be imposed against violations of Canada Customs regulations.
A duty calculated as a percentage of the shipment value. Ordering materials before the release of the formal product design. This early release is required because of long lead times. Advanced Planning and Scheduling APS: Techniques that deal with analysis and planning of logistics and manufacturing over the short, intermediate, and long-term time periods.
APS describes any computer program that uses advanced mathmatical algorithms or logic to perform optimization or simulation on finite capacity scheduling, sourcing, capital planning, resource planning, forecasting, demand management, and others. These techniques simultaneously consider a range of constraints and business rules to provide real-time planning and scheduling, decision support, available-to-promise, and capable-to-promise capabilities.
APS often generates and evaluates multiple scenarios. Management then selects one scenario to use as the official plan. The five main components of an APS system are demand planning, production planning, production scheduling, distribution planning, and transportation planning.
Advanced Shipment Notice ASN: An EDI term referring to a transaction set ANSI where the supplier sends out a notification to interested parties that a shipment is now outbound in the supply chain. This notification is list transmitted to a customer or consignor designating items shipped. The ASN may also include the expected time of arrival. Advanced Shipping Notice ASN: Detailed shipment information transmitted to a customer or consignee in advance of delivery, designating the contents individual products and quantities of each and nature of the shipment.
May also include carrier and shipment specifics, including time of shipment and expected time of arrival. Services provided to the customer after products have been delivered. A rate bureau publication that contains rates for many carriers. An enterprise authorized to transact business for, or in the name of, another enterprise.
A net advantage a company gains by sharing a common location with other companies. An estimate of sales, oftentimes phased, for a grouping of products or product families produced by a facility or firm.
Stated in terms of units, dollars, or both, the aggregate forecast is used for sales and production planning or for sales and operations planning purposes.
A process to develop tactical plans to support the organization's business plan. Aggregate planning usually includes the development, analysis and maintenance of plans for total sales, total production, targeted inventory, and targeted inventory, and targeted customer backlog for families of products.
The production plan is the result of the aggregate planning process. Two approaches to aggregate planning exist - production planning and sales and operations planning. A reduced rate offered to a shipper who tenders two or more class-related shipments at one time and one place. The ability to successfully manufacture and market a broad range of low-cost, high-quality products and services with short lead times and varying volumes that provide enhanced value to customers through customization.
Agility merges the four distinctive competencies of cost, quality, dependability, and flexibility. An agent appointed by an airline to solicit and process international airfreight shipments. Containers designed to conform to the inside of an aircraft. There are many shapes and sizes of containers. Air cargo containers fall into three categories: An enterprise that offers transportation service via air. Airport and Airway Trust Fund: A federal fund that collects passenger ticket taxes and disburses those funds for airport facilities.
An exempt for-hire air carrier that will fly anywhere on demand; air taxis are restricted to a maximum payload and passenger capacity per plane.
Air Transport Association of America: A bill of lading for air transport that serves as a receipt for the shipper, indicates that the carrier has accepted the goods listed, obligates the carrier to carry the consignment to the airport of destination according to specified conditions.
An air carrier that transports cargo only. Because of the arbitrary nature of allocations, costs based on cost causal assignment are viewed as more relevant for management decision-making. Term used when the transportation is completely by water. American National Standards Institute ANSI: A non-profit organization chartered to develop, maintain, and promulgate voluntary US national standards in a number of areas, especially with regards to setting EDI standards.
ANSI is the US representative to the International Standards Organization ISO. American Society for Quality ASQ: Founded ina not-for-profit educational organization consisting ofmembers who are interested in quality improvement.
A professional organization in the field of logistics. A motor carrier industry association composed of sub-conferences representing various motor carrier industry sectors. A domestic water carrier industry association representing barge operators on inland waterways. The National Railroad Passenger Corporation, a federally created corporation that operates most of the United States' intercity passenger rail service. An additional import duty imposed in instances where imported goods are priced at less than the "normal" price charged in the exporter's domestic market and cause material injury to domestic industry in the importing country.
A rate that applies to any size shipment tendered to a carrier; no discount rate is available for large shipments. American Petroleum Institute; also Application Programming Interface. APUs automatically shut down the main locomotive engine idle while maintaining all vital main engine systems at greatly reduced fuel consumption. See Acceptable Quality Level AQL. A notice from the delivering carrier to the Notify Party indicating the shipment's arrival date at a specific location normally the destination.
A field of research seeking to understand and computerize the human thought process. See American Society for Quality. A production environment where a good or service can be assembled after receipt of a customer's order. The key components bulk, semifinished, intermediate, sub-assembly, fabricated, purchased, packing, and so on used in the assembly or finishing process are planned and usually stocked in anticipation of a customer order.
Receipt of an order initiates assembly of the customized product. This strategy is useful where a large number of end products based on the selection of options and accessories can be assembled from common components. An assembly may be an end item or a component of a higher-level assembly. A distribution of costs using causal relationships.
Because cost causal relationships are viewed as more relevant for management decision making, assignment of costs is generally preferable to allocation techniques. Association of American Railroads: A railroad industry association that represents the larger U. Actual time of arrival, or also known as the American Trucking Associations.
A label used to provide additional classification or information about a resource, activity, or cost object. Used for focusing attention and may be subjective. Examples are a characteristic, a score or grade of product or activity, or groupings of these items, and performance measures.
In reference to freight bills, the term audit is used to determine the accuracy of freight bills. A characteristic of modern information systems gauged by the ease with which data can be substantiated by tracing it to source documents, and the extent to which auditors can rely on pre-verified and monitored control processes.
Determining the correct transportation charges due the carrier; auditing involves checking the freight bill for errors, correct rate, and weight. Manual or computerized tracing of the transactions affecting the contents or origin or a record. Referring to an automated identification system. This includes technology such as bar coding and radio frequency tagging RFID. Automated Broker Interface ABI: Customs program to automate the flow of customs-related information among customs brokers, importers, and carriers.
A feature of large call center or "Customer Interaction Center" telephone switches that routes calls by rules, such as next-available employee, skill set, etc. Automated Guided Vehicle System AGVS: A computer-controlled materials handling system consisting of small vehicles carts that move along a guideway. Automatic Tire Inflation System: Automatic tire inflation systems monitor and continually adjust the level of pressurized air to tires, maintaining proper tire pressure even when the truck is moving.
Available to Promise ATP: The uncommitted portion of a company's inventory and planned production maintained in the master schedule to support customer-order promising.
The ATP quantity is the uncommitted inventory balance in the first period and is normally calculated for each period in which an MPS receipt is scheduled. In the first period, ATP includes on-hand inventory less customer orders that are due and overdue. Three methods of calculation are used: See Marine Cargo Insurance. Product ordered but out of stock and promised to ship when the product becomes available. The process of a transportation vehicle returning from the original destination point to the point of origin.
The Motor Carrier Act deregulated interstate commercial trucking, thereby allowing carriers to contract for the return trip. The backhaul can be with a full, partial, or empty load.
An empty backhaul is called deadheading. Backorders are usually caused by stock shortages. In some cases, backorders are not allowed. This results in a lost sale when sufficient quantities are not available to completely ship an order or order line.
Pulling a function back in house as an outsourcing contract expires. A structured measurement system based on a mix of financial and non-financial measures of business performance. A list of financial and operational measurements used to evaluate organizational or supply chain performance. The dimensions of the balanced scorecard might include customer perspective, business process perspective, financial perspective, and innovation and learning perspectives.
It formally connects overall objectives, strategies, and measurements. Each dimension has goals and measurements. The surplus or deficit which results from comparing a country's exports and imports of merchandise only.
A large compressed, bound, and often wrapped bundle of a commodity, such as cotton or hay. A symbol consisting of a series of printed bars representing values. A system of optical character reading, scanning, tracking of units by reading a series of printed bars for translation into a numeric or alphanumeric identification code. A popular example is the UPC code used on retail packaging.
A device to read bar codes and communicate data to computer systems. A method of encoding data for fast and accurate readability. Bar codes are a series of alternating bars and spaces printed or stamped on products, labels, or other media, representing encoded information which can be read by electronic readers called bar.
The cargo-carrying vehicle which may or may not have its own propulsion mechanism for the purpose of transporting goods. Primarily used by Inland water carriers, basic barges have open tops, but there are covered barges for both dry and liquid cargoes. Factors that prevent companies from entering into a particular market, such as high initial investment in equipment. The exchange of commodities or services for other commodities or services rather than the purchase of commodities or services with money.
The currency whose value is "one" whenever a quote is made between two currencies. A pricing system that includes a transportation cost from a particular city or town in a zone or region even though the shipment does not originate at the basing point. A method of picking orders in which order requirements are aggregated by product across orders to reduce movement to and from product locations.
The aggregated quantities of each product are then transported to a common area where the individual orders are constructed. The process of comparing performance against the practices of other leading companies for the purpose of improving performance. Companies also benchmark internally by tracking and comparing current performance with past performance.
An analytical tool used in public planning; a ratio of total measurable benefits divided by the initial capital cost. An organization, usually within a specific industry, recognized for excellence in a specific process area. A specific process or group of processes which have been recognized as the best method for conducting an action. Best practices may vary by industry or geography depending on the environment being used.
Best-practices methodology may be applied with respect to resources, activities, cost object, or processes. An agreement where-in each party makes a promise to the other party. A carrier terminal activity that determines the proper rate and total charges for a shipment and issues a freight bill.
A listing of activities required by a product, service, process output, or other cost object. Bill of Lading BOL: A transportation document that is the contract of carriage containing the terms and conditions between the shipper and carrier. Bill of Lading Number: The number assigned by the carrier to identify the bill of lading.
Bill of Lading, Through: A bill of lading to cover goods from point of origin to final destination when interchange or transfer from one carrier to another is necessary to complete the journey. Bill of Material BOM: A structured list of all the materials or parts and quantities needed to produce a particular finished product, assembly, subassembly, or manufactured part, whether purchased or not. Bill of Material Accuracy: Conformity of a list of specified items to administrative specifications, with all quantities correct.
A listing of resources required by an activity. Resource attributes could include cost and volumes. A drop off facility that is smaller than a public warehouse. A strip of cardboard, thin wood, burlap, or similar material placed between layers of containers to hold a stack together.
See Blanket Purchase Order. A long-term commitment to a supplier for material against which short-term releases will be generated to satisfy requirements. Oftentimes, blanket orders cover only one item with predetermined delivery dates. Blanket Order, Standing Order. A rate that does not increase according to the distance a commodity is shipped.
A service pioneered by the moving companies to eliminate packaging material by wrapping product in padded "blankets" to protect it during transit, usually on "air ride" vans. An unproven process or technology so far ahead of its time that it may create a competitive disadvantage. An MRP process which uses a "phantom bill of material" and permits MRP logic to drive requirements straight through the phantom item to its components. The MRP system usually retains its ability to net against any occasional inventories of the item.
See Bill of Lading BOL. See Bill of Material BOM. Used for storing goods until duty is paid or goods are released in some other proper manner. The act of requesting space and equipment aboard a vessel for cargo which is to be transported.
The number assigned to a certain space reservation by the carrier or the carrier's agent. A constraint, obstacle, or planned control that limits throughput or the utilization of capacity. See Business Performance Measurement BPM.
See Business Process Outsourcing BPO. See Business Process Reengineering BPR. To secure a shipment inside a carrier's vehicle to prevent damage. Recall from customers of suspect lot numbers, plus a specified number of lots produced before and after the suspect ones.
The use of a name, term, symbol, or design, or a combination of these, to identify a product. The separation of a consolidated bulk load into smaller individual shipments for delivery to the ultimate consignee.
The freight may be moved intact inside the trailer, or it may be interchanged and rehandled to connecting carriers. Cargo that is shipped as a unit or package for example: A vessel designed to handle break bulk cargo. The level of production or the volume of sales at which operations are neither profitable nor unprofitable. The break-even point is the intersection of the total revenue and total cost curves.
There are 3 definitions for the term "broker": An MRP, DRP, or other time-phased system in which all time-phased data are accumulated into time periods, or buckets. If the period of accumulation is one week, then the system is said to have weekly buckets. It can refer to raw materials, semi-finished stores, or hold points, or a work backlog that is purposely maintained behind a work center.
Buffers can be maintained at the constraint, convergent points with a constraint partdivergent points, and shipping points. In the theory of constraints, a process in which all expediting in a shop is driven by what is scheduled to be in the buffers constraint, shipping, and assembly buffers.
By expediting this material into the buffers, the system helps avoid idleness at the constraint and missed customer due dates. In addition, the causes of items missing from the buffer are identified, and the frequency of occurrence is used to prioritize improvement activities. A quantity of goods or articles kept in storage to safeguard against unforeseen shortages or demands.
A "push" system of production and inventory management. Product is manufactured or acquired in response to sales forecasts. A method of reducing inventory by not manufacturing product until there is an actual order from the customer. See Build to Inventory. A storage area for large items which at a minimum are most efficiently handled by the palletload. Unpacked dry cargo such as grain, iron ore or coal. Any commodity shipped in this way is said to be in bulk.
An extreme change in the supply position upstream in a supply chain generated by a small change in demand downstream in the supply chain. Inventory can quickly move from being backordered to being in excess. This is caused by the serial nature of communicating orders up the chain with the inherent transportation delays of moving product down the chain.
The bullwhip effect can be eliminated by synchronizing the supply chain. A group of products that are shipped together as an unassembled unit. An occurrence where two or more products are combined into one transaction for a single price. The rate of consumption of cash in a business. Used to determine cash requirements on an on-going basis. Entrepreneurial companies will calculate their burn rate in order to understand how much time they have before they need to raise more money, or show a positive cash flow.
Any computer program, set of programs, or package of programs created to solve a particular business problem or function. Business Continuity Plan BCP: A contingency plan for sustained operations during periods of high risk, such as labor unrest or natural disaster.
CSCMP provides suggestions for helping companies do continuity planning in their Securing the Supply Chain research. A copy of this research is available on CSCMP's web site at www. The process of planning, implementing, and controlling the efficient, effective flow and storage of goods, services, and related information from the point of origin to the point of consumption for the purpose of conforming to customer requirements.
TR 93/23 - Income tax: valuation of trading stock subject to obsolescence or other special circumstances (As at 29 November )
A business plan is usually stated in terms of dollars and grouped by product family. The business plan is then translated into synchronized tactical functional plans through the production planning process or the sales and operations planning process.
Although frequently stated in different terms dollars versus unitsthese tactical plans should agree with each other and with the business plan. Business Performance Measurement BPM: A technique that uses a system of goals and metrics to monitor performance.
Analysis of these measurements can help businesses periodically set business goals, then provide feedback to managers on progress towards those goals. A specific measure can be compared to itself over time, compared with a present target, or evaluated along with other measures. Business Process Outsourcing BPO: The practice of outsourcing non-core internal functions to third parties. Functions typically outsourced include logistics, accounts payable, accounts receivable, payroll, and human resources.
Other areas can include IT development or complete management of the IT functions of the enterprise. Business Process Reengineering BPR: The fundamental rethinking and radical redesign of business processes to achieve dramatic organizational improvements.
As opposed to business-to-consumer B2C. Many companies are now focusing on this strategy, and their web sites are aimed at businesses think wholesale and only other businesses can access or buy products on the site. Internet analysts predict this will be the biggest sector on the web. The hundreds of e-commerce web sites that sell goods directly to consumers are considered B2C. This distinction is important when comparing web sites that are B2B as the entire business model, strategy, execution, and fulfillment is different.
A division or segment of an organization generally treated as a separate profit-and-loss center. An enterprise that arranges for the acquisition of goods or services and agrees to payment terms for such goods or services. The way individuals or organizations behave in a purchasing situation.
The customer-oriented concept finds out the wants, needs, and desires of customers and adapts resources of the organization to deliver need-satisfying goods and services.
Also called gap seals, which help to close the gap between the tractor and the trailer. A federal law that requires coastal and inter-coastal traffic to be carried in U. See Computer-Aided Engineering CAE. See Cash Against Documents. Referring to the practice of placing high-value or sensitive products in a fenced off area within a warehouse.
The conversion of working days to calendar days is based on the number of regularly scheduled workdays per week in your manufacturing calendar. To convert from working days to calendar days: A facility housing personnel who respond to customer phone queries. These personnel may provide customer service or technical support. Call center services may be in house or outsourced. An ordering system used when multiple items are ordered from one vendor. The can-order point is a point higher than the original order point.
When any one of the items triggers an order by reaching the must-order point, all items below their can-order point are also ordered. The can-order point is set by considering is set by considering the additional holding cost that would be incurred if the item were ordered early.
The concept that capacity should be understood, defined, and measured for each level in the organization to include market segments, products, processes, activities, and resources. In each of these applications, capacity is defined in a hierarchy of idle, non-productive, and productive views. Assuring that needed resources e. The physical facilities, personnel, and processes available to meet the product or service needs of customers.
Capacity generally refers to the maximum output or producing ability of a machine, a person, a process, a factory, a product, or a service. A term exercise incentive stock options to describe the monetary requirements CAPital EXpenditure of an initial investment in new machines or equipment.
The resources, or money, available for investing in assets that produce output. Computer-Aided Planned Stowage and Networking system. Cargo Agents Reservation Air Waybill Issuance and Tracking. An Interstate Commerce Act amendment that delineates the liability of common carriers and the bill of lading provisions. A Customs document permitting the holder to carry or send special categories of goods temporarily into certain foreign countries without paying duties or posting bonds.
A firm that transports goods or people via land, sea, or air. Items that a carrier owns technically or outright to facilitate the services they provide. Carrier Certificate and Release Order: Used to advise customs of the shipment's details. By means of this document, the carrier certifies that the firm or individual named in the certificate is the owner or consignee of the cargo.
A common carrier is liable for all shipment loss, damage, and delay with the exception of that caused by act of God, act of a public enemy, act of a public authority, act of the shipper, and the goods' inherent nature. A group of companies that agree to cooperate rather than compete, in producing a product or service.
Thus limiting or regulating competition. There are two definitions for this term: A storage rack consisting of multiple lines of gravity flow conveyors. Cash Against Documents CAD: A method of payment for goods in which documents transferring title are given to the buyer upon payment of cash to an intermediary acting for the seller.
Cash In Advance CIA: A method of payment for goods whereby the buyer pays the seller in advance of shipment of goods. The time it takes for cash to flow back into a company after it has been spent for raw materials. Cash with Order CWO: A method of payment for goods where cash is paid at the time of order, and the transaction becomes binding on both buyer and seller.
A call center or order processing facility that receives orders directly from the customer based on defined catalog offerings, and ships directly to the customer. The management of product categories as strategic business units. This practice empowers a category manager with full responsibility for the assortment decisions, inventory levels, shelf-space allocation, promotions, and buying. With this assiom forex roma and responsibility, the category manager is able to more accurately judge the consumer buying patterns, product sales, and market trends of that category.
In quality management, a structured process used to organize ideas into logical groupings. Used in brainstorming and problem-solving exercises.
Also known as Ishikawa or fish bone diagram. A manufacturing or service unit consisting of a number of workstations, and the materials transport mechanisms and storage buffers that interconnect them. A supply chain planning methodology for locating distribution centers at approximately the location representing the minimum transportation costs between the plants, the distribution centers, and the markets. The organization of the dispatching function into one central location.
This structure often involves the use of data collection devices for communication between the centralized dispatching function which usually reports to the production control department and the shop manufacturing departments. The restriction of authority to make decisions to few managers.
Inventory decision-making for all SKUs exercised from one office or department for an entire company. A supplier's certification that the supplies or services in question meet specified requirements. A negotiable document indicating that insurance has been secured under an open policy to cover loss or damage to a shipment while in transit.
A document containing an affidavit to prove the origin of imported goods. Used for customs and foreign exchange purposes. Certificate of Public Convenience and Necessity: The grant of operating authority that common carriers receive. A carrier must prove that a public need exists and that the carrier is fit, willing, and able to provide the needed service.
The certificate may specify the commodities the carrier may haul, and the routes it may use. A for-hire air carrier that is subject to economic regulation and requires an operating certification to provide service. A status awarded to a supplier who consistently meets predetermined quality, cost, delivery, financial, and count objectives.
Incoming inspection may not be required. See Container Freight Station CFS. The sequence of customers who, in turn, consume the output of each other, forming a chain. For example, individuals are customers of a department store which in turn is the customer of a producer who is the customer of a material supplier. The business process that coordinates and monitors all changes to the business processes and applications operated by the out of date stock trading standards selling, as well as to their internal equipment, resources, operating systems, and procedures.
The change management discipline is carried out in a way that minimizes the risk of problems that will affect the operating environment and service delivery to the users.
A formal notification that a purchase order or shop order must be modified in some way. This change can result from a revised quantity, date, or specification by the customer; an engineering change; a change in inventory requirement data; etc. Process of making necessary adjustments to change or switchover the type of products produced on a manufacturing line.
Changeovers usually lead to downtime and for the most part, companies try to minimize changeover time to help reduce costs. A method whereby a business dispenses its product, such as a retail or distribution channel, call center, or a web-based electronic storefront. A push technology that allows users to subscribe to a web site to browse offline, automatically display updated pages on their screen savers, and download or receive notifications when pages in the web site are modified.
Channels are available only in browsers that support channel definitions such as Microsoft Internet Explorer version 4.
This occurs when various sales channels within a company's supply chain compete with each other for the same business. An example is where a retail channel is in competition with a web-based channel set up by the company.
Members of a supply chain i. Any series of firms risk writing covered call options strategy individuals that participates in the flow of goods and services from the raw material supplier and producer to the final user or consumer.
The shipment weight used in determining freight charges. The chargeable weight may be the dimensional weight or, for container shipments, the gross weight of the shipment less the tare weight of the container.
A warehouse area where a company maintains battery chargers and extra batteries to support a fleet of electrically powered materials handling equipment. The company must maintain this area in accordance with government safety regulations. A specialized framework that carries a rail or marine container.
A wedge, usually made of hard how can i get yoville cash or steel, that is firmly placed under the wheel of a trailer, truck, or boxcar to stop it from rolling. See Continuous Improvement CI. A motor carrier driver who drives a local route as opposed to a long-distance, intercity route. A federal regulatory agency that implemented economic regulatory controls over air carriers.
Carload rail service requiring shipper to meet minimum weight. A charge made against a carrier for loss, damage, delay, or overcharge. A classification of regulated carriers based upon annual operating revenues -- motor carriers of property: There are seven 7 Class 1 Railroads in the United States.
Two Mexican and two Canadian railroads would also qualify, if they were US companies. A grouping of goods or commodities under one general heading. All the items in the group make up a class. The freight rates that apply to all items in the class are called "class rates. An alphabetical listing of commodities, the class or rating into which the commodity is placed, and the minimum weight necessary for the rate discount; used in the class rate structure.
A railroad terminal area where railcars are grouped together to form train units. A document stating that a shipment is free to be imported into the country after all legal requirements have been met. A conventional or limited-purpose entity generally restricted to providing specialized services, such as clearing funds or settling accounts.
Council of Logistics Management, now known as The Council of Supply Chain Management Professionals. A system build around material requirements planning that includes the additional planning processes of production planning sales and operations planningmaster production scheduling, and capacity requirements planning.
Once this planning phase is complete and the plans have been accepted as realistic and attainable, the execution processes come into play. These processes include the manufacturing control process of input-output capacity measurement, detailed scheduling and dispatching, as well as anticipated delay reports from both the plant and suppliers, supplier scheduling, and so on. The term "closed buying stocks on the chance of a quick profit implies not only that each of these processes is included in the overall system, but also that feedback is provided by the execution processes so that the planning can be kept valid at all times.
The evolution of a supply chain from intra-organizational management to inter-organizational management. Co-packers are more frequently seen in consumer packaged goods and foods. A form of continuous replenishment in which the manufacturer is responsible for replenishment of standard merchandise, while the retailer manages the replenishment of promotional merchandise. Water carriers that provide service along coasts serving ports on the Atlantic or Pacific Oceans or on the Gulf of Mexico.
A numeric, or alphanumeric representation of text for exchanging commonly-used information. See Cost-of-Goods Sold COGS. Collaborative Planning, Forecasting, and Replenishment CPFR: Collaboration encompasses business planning, sales forecasting, and all operations required to replenish raw materials and finished goods.
CPFR is considered a standard, endorsed by the Voluntary Inter-Industry Commerce Standards. Freight payable to the carrier at the port of discharge or ultimate destination. The consignee does not pay the freight charge if the cargo does not arrive at the destination. All documents commercial invoices, bills of lading, etc.
An aircraft specially designed to carry unitized cargo loads on the upper deck of the craft, forward of the passenger area. See Cumulative Lead Time. A document created by the seller.
It is an official document which is used to indicate, among other things, the name and address of the buyer and seller, the product s being shipped, and their value for customs, insurance, or other purposes.
The area surrounding a city or town to which rate carriers quote for the city or town also apply; the ICC defines the area. The portion of the production capability that is currently in use, or is scheduled for use. Committee of American Steamship Lines: An industry association representing subsidized U. Any article exchanged in trade, most commonly used to refer to employee stock option plans esops materials and agricultural products.
A clause that prohibits railroads from hauling commodities that they produced, mined, owned, or had an interest in. Grouping like parts or materials under one buyer's control for the procurement of all requirements to support production. A code describing a commodity or a group of commodities pertaining to goods classification.
This code can be carrier tariff or regulating in nature. The purchasing plan for a family of items. This would include the plan to manage the supplier base and solve problems. A rate for a specific commodity and its origin-destination. Transportation available to the public that does not provide special treatment to any one party and is regulated as to the rates charged, the liability assumed, and the service provided. A common carrier must obtain a certificate of public convenience and necessity from the Federal Trade Commission for interstate traffic.
Common carriers must serve, deliver, charge reasonable rates, and not discriminate. A cost that a company cannot directly assign to particular segments of the business; a cost that the company incurs for the business as a whole.
An exempt for-hire air carrier that publishes a time schedule on specific routes; a special type of air taxi. A system of values, beliefs, and behaviors inherent in a company. To optimize business performance, top management must define and create the necessary culture. A principle based on the assumption that an area will specialize in producing goods for which it has the greatest advantage or the least comparative disadvantage. Value created by a company for its customers that clearly distinguishes it from the competition, provides its customers a reason to remain loyal.
Benchmarking a product or service against competitors. Complete and On-Time Delivery COTD: A measure of customer service. All items on any given order must be delivered on time for the order to be considered as complete and on time.
Complete Manufacture to Ship Time: Average time from when a unit is declared shippable by manufacturing until the unit actually ships to a customer. Material that will contribute to a finished product but is not the finished product itself. Examples include tires for an automobile, power supply for a personal computer, or a zipper for a ski parka.
The use of computers to model design options to stimulate their performance. Training that is delivered via computer workstation and includes all training and testing materials. A group of vessel operators joined for the purpose of establishing freight rates. An ocean carrier who is a member of an association known as a "conference. The arrangement of components as specified to produce an assembly. A process where the trigger to begin to manufacture, final assembly, or packaging of a product is an actual customer order or release rather than a market forecast.
With regards to EDI, a formal notice by message or code from a electronic mailbox system or EDI server indicating that a message sent to a trading partner has reached its intended mailbox or has been retrieved by the addressee. A purchase order issued to a supplier listing the goods holdfast moneymaker uk services and terms of an order placed orally or otherwise before the usual purchase document.
An affirmative indication or judgment that a product or service has met the requirements of a relevant specification, contract, or earn money fast calgary. The Consolidated Rail Corporation established by the Regional Reorganization Act of to operate the bankrupt Penn Central Railroad and other bankrupt railroads in the Northeast; the 4-R Act of provided funding.
The party to whom goods are shipped and delivered. The receiver of a freight shipment. The party who originates a shipment of goods shipper. The sender of a freight shipment, usually the seller. Combining two or more shipments in order to realize lower transportation rates. Inbound consolidation from vendors is called make-bulk consolidation; outbound consolidation to customers is called european central bank currency rates xml consolidation.
The location where consolidation takes place. Consolidator's Bill of Lading: A bill of lading issued by a consolidator as a receipt for merchandise that will be grouped with cargo obtained from other shippers. See also House Air Waybill. A group of companies that works together to jointly produce a product, service, or project. A bottleneck, obstacle, or planned control that limits throughput or the utilization of capacity. A government official residing in a foreign country, charged with representing the interests of his or her country and its nationals.
A formal statement made to the consul of a country describing merchandise to be shipped to that consul's country. Approval must be obtained prior to shipment. Special forms signed by the consul of a country to which cargo is destined. A document, required by some foreign countries, describing a shipment of goods and showing information such as the consignor, consignee, and value of the shipment.
Certified by a consular official of the foreign country, it is used by the country's custom. Database with information about a retailer's individual consumers used primarily for marketing and promotion. An official Customs form used for declaration of reported goods, also showing the total duty due on earn money get recharge transaction.
For travel to and from ports, containers are loaded onto truck chassis or on railroad flatcars. A vehicle built for the purpose of transporting a container so that, when a container and chassis are assembled, the produced unit serves as a road trailer.
The storage area for empty containers. Container Freight Station CFS: Container Freight Station Charge: The charge assessed for services performed at the loading or discharge location. A type of steamship-line service in which cargo is transported between container freight stations, where containers may be stuffed, stripped, or consolidated. Usually used for less-than-container load shipments. An identifier assigned to a container by a carrier.
A shipment method in which commodities are placed in containers, and after initial loading, the commodities, per se, are not rehandled in shipment until they are unloaded at the destination. Container on Flat Car COFC: A container that is transported on a rail flatcar. An area designated to be used for the stowage of cargo in containers that may be accessed by truck, rail, or ocean transportation. A vessel specifically designed for the carriage of containers.
The location designated by the carrier for receiving, assembling, holding, storing, and delivering containers, and where containers may be picked up by shippers or redelivered by consignees. A type of steamship-line service in which freight is transported from origin container yard to destination container yard.
Preparing to deal with calamities e. Continuous Flow Distribution CFD: The streamlined pull of products in response to customer requirements while minimizing the total costs of distribution. Materials handling devices that include conveyors and drag lines. A structured, measurement-driven process that continually reviews and improves performance.
Continuous Process Improvement CPI: A never-ending effort to expose and eliminate root causes of problems; small-step improvement as opposed to big-step improvement. Continuous replenishment is the practice of partnering between distribution channel members that changes the traditional replenishment process from distributor-generated purchase orders based get cashcrate referrals economic order quantities to the replenishment of products based on actual and forecasted product demand.
Continuous Replenishment Planning CRP: A program that triggers the manufacturing and movement of product through the supply chain when the identical product is purchased by an end user.
An agreement between two or more competent persons or companies to perform or not to perform specific acts or services or to deliver merchandise.
Glossary of Transportation, Logistics, Supply Chain, and International Trade Terms - Inbound Logistics
A contract may be oral or written. A purchase order, when accepted by a supplier, becomes a contract. Acceptance may be in writing or by performance, unless the purchase order requires acceptance in writing.
Managing all aspects of a contract to guarantee that the contractor fulfills his obligations. A for-hire carrier that does not serve the general public but serves shippers with whom the carrier has a continuing contract. The contract carrier must secure a permit to operate. A contract between a cargo shipper and carrier for the transport of multiple cargoes over a period of time. Contracts are individually negotiated and usually include cargo description, quantities per shipment and in total, load and discharge ports, freight rates and duration of the contract.
The difference between sales price and various costs. Contribution is used to cover fixed costs and profits. An amount equal to the difference between sales revenue and variable costs. Referring to an area within a trade journal option navigator or yard that is fenced and gated.
These areas are typically used to store high-value items and may be monitored by security cameras. The application used to describe the function of a vehicle of transfer.
A materials handling device that moves freight from one warehouse area to another. Roller conveyors utilize gravity, whereas belt conveyors use motors. Groups of firms or individuals having common interests; agricultural cooperative associations may haul up to 25 percent of their total interstate non-farm, nonmember goods tonnage in movements incidental and necessary to their primary business.
Two earn money by sms sending jobs more carriers of different modes transporting a shipment.
Bundles of skills or knowledge sets that enable a firm to provide the greatest level of value to its customers in a way that's difficult for competitors to emulate and that provides for future growth. Core competencies are embodied in the skills of the workers and in the organization. They are developed through collective learning, communication, and commitment to work across levels and functions in the organization and with the customers and suppliers.
A core competency could be the capability of a firm to coordinate and harmonize diverse production skills and multiple technologies. For rapid and effective development of such a process, materials scientists must work closely with machine designers, software engineers, process specialists, and operating personnel.
Core competencies are not directly related to the product or market. That unique capability that is central to a company's competitive strategy. The branch of accounting that is concerned with recording and reporting business operating costs. It includes the reporting of costs by departments, activities, and products.
The seller quotes a price that includes the cost of transportation to a specific point. The buyer assumes responsibility for loss and damage and pays for the insurance of the shipment.
In accounting, the assignment of costs that cannot be directly related to production activities via more measurable means, e. In accounting, a sub-unit in an organization that is responsible for costs.
In accounting, any situation or event that causes a change in the consumption of a resource, or influences quality or cycle time. An activity may have multiple cost drivers. Cost drivers do not necessarily need to be quantified; however, they strongly influence the selection and magnitude of resource drivers and activity drivers. In cost accounting, the examination, quantification, and explanation of the effects of cost drivers.
The results are often used for continuous improvement programs to reduce throughput times, improve quality, and reduce cost. In cost accounting, the lowest level component of a resource activity, or cost object. A freight term indicating that the seller is responsible for cost, the marine insurance, and the freight charges on an ocean shipment of goods. The management and control of activities and drivers to calculate accurate product and service costs, improve business processes, eliminate waste, influence cost drivers, and plan operations.
The resulting information can be very useful in setting earn money livemocha evaluating an organization's strategies. The cost to borrow or invest capital. The amount of direct materials, direct labor, and allocated overhead associated with products sold during a given period of time, determined in accordance with Generally Accepted Accounting Principles GAAP.
Cost of Lost Sales: The forgone profit companies associate with a stockout. The interrelationship among system variables in which a change in one variable affects other variables' costs. A cost reduction in one variable may increase costs for other variables, and vice versa.
In cost accounting the difference between what has been budgeted for an activity and what it actually costs. See Complete and On-Time Delivery COTD. Council of Supply Chain Management Professionals CSCMP: Its purpose is to enhance the development of the logistics and supply chain management professions by providing these individuals with educational opportunities and relevant information what jobs make the most money gta online a variety of programs, services, and activities.
A reciprocal trading agreement that includes a variety of transactions involving two or more parties. An additional import duty imposed to offset Government subsidies in the exporting country, when the subsidized imports cause material injury to domestic industry in the importing country. The country that will be the ultimate or final destination for goods. The country where the goods were manufactured. A fast, door-to-door service for high-valued goods and documents; firms usually limit service to shipments weighing fifty pounds or work from home content writer jobs in delhi. See Collaborative Planning, Forecasting and Replenishment CPFR.
See Continuous Process Improvement CPI. A materials handling device that lifts heavy items. The amount of purchasing credit a customer has available. Usually defined by the internal credit department and reduced by any existing unpaid bills or open orders. The agreement between two or more enterprises concerning the amount and timing of payment for goods or services. This is what makes an idea, product, service, or business model unique. Critical Success Factor CSF: A modified ABC analysis in which a company assigns a subjective critical value to each item in an inventory.
See Customer Relationship Management CRM. Crossdock operations in a warehouse involve moving goods between different trucks to consolidate loads without intermediate storage. A distribution system in which merchandise received at the warehouse or distribution center is not put away, but instead is readied for shipment to retail stores. Cross docking requires close synchronization of all inbound and outbound shipment movements.
By eliminating the put-away, storage, and strategy for a novice binary options 60 sec operations, it can significantly reduce distribution costs.
The practice of attempting to sell additional products to a customer during a sales call. For example, when the CSR presents a camera case and wow make money with engineering mop to a customer that is ordering a camera.
Material flow activity where materials are shipped to customers from a secondary shipping point rather than from a preferred shipping point. See Continuous Replenishment Planning CRP. See Council of Supply Chain Management Professionals CSCMP. See Critical Success Factor CSF. See Customer Service Representative CSR. Cubic volume of space being used or available for shipping or storage. The situation when a piece of equipment has reached its volumetric capacity before reaching the permitted weight limit.
In warehousing, a measurement of the utilization of the total storage capacity of a vehicle or warehouse. The carrying capacity of a piece of equipment according to measurement in cubic feet. In warehousing, a measurement of space available, or required, in transportation and warehousing. The total time required to source components, build, and ship a product. The cumulative internal and external lead time to manufacture shippable product, assuming that there is no inventory on hand, no materials or parts on order, and no prior forecasts existing with suppliers.
An element of Total Supply Chain Response Time Calculation: The critical path along the following elements: Currency Adjustment Factor CAF: A surcharge imposed by a carrier on ocean freight charges to offset foreign currency fluctuations.
Customer Acquisition or Retention: The rate at which new customers are acquired, or existing customers are retained. A key selling point to potential marquis partners. The end user, or customer, motivates what is produced or how it is delivered. Those personnel whose jobs entail actual contact with the customer. An order from a customer for a particular product or a number of products.
It is often referred to as an actual demand to distinguish it from a forecasted demand. The practice of placing a value on the profit generated by business done with a particular customer. Customer Relationship Management CRM: This refers to information systems that help sales and marketing functions as opposed to the ERP Enterprise Resource Planningwhich is for back-end integration. Dividing customers into groups based on specific criteria, such as products purchased, customer geographic location, etc.
The series of activities involved in providing the full range of services to customers. Customer Service Representative CSR: An individual who provides customer support via telephone in a call-center environment.
A long-term relationship between a buyer and a supplier characterized by teamwork and mutual confidence. The supplier is considered an extension of the buyer's organization.
The partnership is based on several commitments. The buyer provides long-term contracts and uses fewer suppliers. The supplier implements quality assurance processes so that incoming inspection can be minimized.
The supplier also helps the buyer reduce costs and improve product and process designs. Creating a product from existing components into an individual order. The authorities designated to collect duties levied by a country on imports and exports.
Customs Automated Data Exchange System CADEX: A Canada Customs system that allows for the electronic transmission of import data for goods that have already been released.
Additional information such as accounting data and release notifications are also accessible. Normally responsible for obtaining and submitting all documents for clearing merchandise through customs, arranging inland transport, and paying all charges related to these functions.
The act of obtaining permission to import merchandise from another country into the importing nation. A business firm that oversees the movement of international shipments through Customs, and ensures that the documentation accompanying a shipment how much money does derek jeter make a season complete and accurate. A document that contains a declaration by the seller, the shipper, or the agent as to the value of the shipment.
The value of the how much money does derek jeter make a season goods on which duties will be assessed.
See Cash with Order CWO. The abbreviation for hundredweight, which is the equivalent of pounds. An inventory system where counts are performed continuously, often eliminating the need for an annual overall inventory. It is usually set up so that A items are counted regularly i.
The amount of time it takes to complete a business process. Cycle Time to Process Obsolete and End-of-Life Product Returns for Disposal: The total time to process goods returned as obsolete and end of life to actual disposal.
Cycle Time to Repair or Refurbish Returns for Use: The total time to process goods returned for repair or refurbishing. Articles or substances capable of posing a significant risk to health, safety, or property, and that ordinarily require special attention when transported. See also Hazardous Goods. In addition, scorecards should be reviewed regularly - at least on a monthly basis, and weekly in key functions such as manufacturing and distribution where activities are critical to the success of a company.
Lists the data elements for which standards exist. The Joint Electronic Document Interchange JEDI committee developed a data dictionary that is employed by many EDI users. Data Interchange Standards Association DISA: The secretariat which provides clerical and administrative support to the ASC X12 Committee. The process of studying data to search for previously unknown relationships. This knowledge is then applied to achieving specific business goals.
A repository of data that has been specially prepared to support decision-making applications. Data stored in computer-readable form, usually indexed or sorted in a logical order by which users can find a particular item of data they need. A label on products with the date of production. In food industries, it's often an integral part of the lot number. Measure of quantity of inventory on hand in relation to number of days for which usage will be covered.
For example, if a component is consumed in manufacturing at the rate of per day and there are 1, units available on hand, this represents The return of an empty transportation container to its point of origin. Dead on Arrival DOA: A term used to describe products which are not functional when delivered.
The cargo carrying capacity of a vesel, including fuel oil, stores and provisions. A situation in which a company management gives decision-making authority to managers at many organizational levels.
Decision Support System DSS: Software that speeds access and simplifies data analysis, queries, etc. Declaration of Dangerous Goods: To comply with the U. Declared Value for Carriage: The value of the goods, declared by the shipper on a bill of lading, for the purpose of determining a freight rate or the limit of the carrier's liability. An enterprise that provides services to un-group shipments, orders, goods, etc.
A third party service that dedicates equipment vehicles and drivers to a single customer for its exclusive use on a contractual basis. Defective goods inventory DGI: Those items that have been returned, have been delivered damaged and have a freight claim outstanding, or have been damaged in some way during warehouse handling.
The time agreed upon between two enterprises for goods or transportation equipment to arrive at a selected location. This responsibility includes tasks such as ensuring that products get through Customs. A document issued to a carrier to pick up goods at a location anddeliver them to another location. See also Delivery Order. A document issued by the customs broker to the ocean carrier as authority to release the cargo to the appropriate party. Delivery Performance to Commit Date: The percentage of orders that are fulfilled on o before the internal commit date, used as a measure of internal scheduling systems effectiveness.
Delivery measurements are based on the date a complete order is shipped or the ship-to date of a complete order. A complete order has all items on the order delivered in the quantities requested. An order must be complete to be considered fulfilled. Multiple-line items on a single order with different planned delivery dates constitute multiple orders, and multiple-planned delivery dates on a single line item also constitute multiple orders.
Delivery Performance to Request Date: The percentage of orders that are fulfilled on or before the customer's requested date used as a measure of responsiveness to market demand.
A complete order must be complete to be considered fulfilled. Multiple line items on a single order with different planned delivery dates constitute multiple orders, and multiple planned delivery dates on a single line item also constitute multiple orders. A professional association of transportation and traffic practitioners.
The same as supply chain management, but with an emphasis on consumer pull versus supplier push. The systems that assist in the process of identifying, aggregating, and prioritizing all sources of demand for the integrated supply chain of a product of service at the appropriate level, horizon, and interval. The triggering of material movement to a work center only when that work center is ready to begin the next job. In effect, it eliminates the queue from in from of a work center, but it can cause a queue at the end of a previous work center.
A signal from a consumer, customer or using operation that triggers the issue of product or raw material. The process of identifying and measuring the gaps and imbalances between demand and resources in order to determine how to best resolve the variances through marketing, pricing, packaging, warehousing, outsource plans, or some other action that will optimize service, flexibility, costs, assets, or other supply chain inconsistencies in an iterative and collaborative environment.
The concept of a continuously rotating wheel of plan-to-do-check-action PDCA used to show the need for interaction among market research, design, production, and sales to improve quality. In marketing, dividing potential markets by characteristics of potential customers, such as age, sex, income, and education.
The carrier charges and fees applied when rail freight cars and ships are retained beyond a specified loading or unloading time. Denied Party Listing DPL: A list of organizations that is unauthorized to submit a bid for an activity or to receive a specific product. For example, some countries have bans on certain products like weapons or sensitive technology.
A physical characteristic measuring a commodity's mass per unit volume or pounds per cubic foot; an important factor in ratemaking, since density affects the utilization of a carrier's vehicle. A rate based upon the density and shipment weight. Revisions or complete elimination of economic regulations controlling transportation.
The Motor Carrier Act of and the Staggers Act of revised the economic controls over motor carriers and railroads, and the Airline Deregulation Act of eliminated economic controls over air carriers.
The demand for a product's transportation is derived from the product's demand at some location. A product design methodology that provides a quantitative evaluation of product designs. Design of Experiments DOE: A branch of applied statistics dealing with planning, conducting, analyzing, and interpreting controlled tests to evaluate the factors that control the value of a parameter or group of parameters. The unloading of cargo from a container or other piece of equipment.
A discount offered by a carrier that faces a service time disadvantage over a route. This is when your own sales force sells to the customer.
Your company may ship to the customer, or a third party may handle shipment, but in either case, your company owns the sales contract and retains rights to the receivable from the customer.
Your end customer may be a retail outlet. The movement to the customer may be direct from the factory, or the product may move through a distribution network owned by your company. Order information in this channel may be transmitted by electronic means. A cost that can be directly traced to a cost object since a direct or repeatable cause-and-effect relationship exists. A direct cost uses a direct assignment or cost causal relationship to transfer costs.
Direct Product Profitability DPP: Calculation of the net profit contribution attributable to a specific product or product line.
A retail location that purchases products directly from your organization or responding entity. Direct Store Delivery DSD: Process of shipping direct from a manufacturer's plant or distribution center to the customer's retail store, thus bypassing the customer's distribution center.
Also called Direct-to-Store Delivery. Same as Direct Store Delivery. Contingency planning specifically related to recovering hardware and software e. The name of the port where the cargo is unloaded from the export vessel.
This is the port reported to the U. Census on the Shipper's Export Declaration, Schedule K, which is used by U. This can also be considered the first discharge port.
Discrete manufacturing processes create products by assembling unconnected distinct parts as in the production of distinct items such as automobiles, appliances, or computers. When the traditional sales channels are disassembled and the middleman gets cut out of the deal. Such as where the manufacturer ships direct to a retailer, bypassing the distributor.
The carrier activities involved with controlling equipment; involves arranging for fuel, drivers, crews, equipment, and terminal space. Inventory that is geographically dispersed. For example, where a company maintains inventory in multiple distribution centers to provide a higher level of customer service. Outbound logistics, from the end of the production line to the end user. The activities associated with the movement of material, usually finished goods or service parts, from the manufacturer to the customer.
These activities encompass the functions of transportation, warehousing, inventory control, material handling, order administration, site and location analysis, industrial packaging, data processing, and the communications network necessary for effective management.
It includes all activities related to physical distribution, as well as the return of goods to the manufacturer.
In many cases, this movement is made through one or more levels of fieldwarehouses. The systematic division of a whole into discrete parts having distinctive characteristics. The warehouse facility which holds inventory from manufacturing pending distribution to the appropriate stores. One or more companies or individuals who participate in the flow of goods and services from the manufacturer to the final user or consumer.
The organizational and pipeline strategy for getting products to customers. Many companies use both strategies, depending on markets and effectiveness. The planning activities associated with transportation, warehousing, inventory levels, materials handling, order administration, site and location planning, industrial packaging, data processing, and communications networks to support distribution.
Distribution Requirements Planning DRP: A system of determining demands for inventory at distribution centers and consolidating demand information in reverse as input to the production and materials system. Distribution Resource Planning DRP II: The extension of distribution requirements planning into the planning of the key resources contained in a distribution system: A finished goods warehouse from which a company assembles customer orders.
A business that does not manufacture its own products, but purchases and resells these products. Such a business usually maintains a finished goods inventory.
A document used to accept materials or equipment at an ocean pier or accepted location. Provides the ocean carrier with verification of receipt and the delivering carrier with proof of delivery.
In EDI, a form, such as an invoice or purchase order, that trading partners have agreed to exchange and that the EDI software handles within its compliance-checking logic. See Design of Experiments. Domestic Trunk Line Carrier: A classification for air carriers that operate between major population centers. These carriers are now classified as major carriers.
The through-transport of goods from consignor to consignee. The through transport service from consignor to port of importation.
A motor carrier operation that involves one tractor pulling two trailers. A mechanized device for transporting two standard pallets simultaneously.
Double trucks are two foot trailers that are pulled by one tractor.
Doubles also are known as "double bottoms. To merge temporary files containing a day's or week's worth of information with the main data base in order to update it. One or more companies or individuals who participate in the flow of goods and services moving from the manufacturer to the final user or consumer.
See Denied Party List DPL. The service offered by a motor carrier for pick-up and delivery of ocean containers or rail containers. Drayage agents usually handle full-load containers for ocean and rail carriers. Motor carriers that provide local pickup and delivery of trailers and containers on chassis. Department of Transportation rules that limit the maximum time a driver may drive in interstate commerce; the rules prescribe both daily and weekly maximums.
A situation in which an equipment operator deposits a trailer or boxcar at a facility at which it is to be loaded or unloaded. To take the title of the products but not actually handle, stock, or deliver it, e. See Distribution Requirements Planning DRP. In the theory of constraints, the generalized process used to manage resources to maximize throughput. The drum is the rate or pace of production set by the system's constraint. The buffers establish the protection against uncertainty so that the system can maximize throughput.
The rope is a communication process from the constraint to the gating operation that checks or limits material released into the system to support the constraint.
See Direct Store Delivery DSD.
See Decision Support System DSS. See Direct-to-Store Delivery DTS. A motor carrier that has both common and contract carrier operating authority. An international water carrier pricing system in which a shipper signing an exclusive use agreement with the conference pays a rate 10 to 15 percent lower than non-signing shippers do for an identical shipment.
The packing material used to protect a product from damage during transport. A coded, numerical representation assigned to a specific company USA. A tax imposed by a government on merchandise imported from another country. A refund of duty paid on imported merchandise when it is exported later, whether in the same or a different form.
Duty Free Zone DFZ: An area where goods or cargo can be stored without paying import customs duties while awaiting manufacturing or future transport. Dynamic Process Control DPC: Continuous monitoring of process performance and adjustment of control parameters to optimize process output.
A term referring to the Pareto principle. See Enterprise Application Integration EAI. UCC System provides identification standards to uniquely identify trade items, logistics units, locations, assets, and service relations worldwide. The identification standards define the construction of globally-unique and unambiguous numbers. For additional reference, please see http: Early Supplier Involvement ESI: The process of involving suppliers early in the product design activity and drawing on their expertise, insights, and knowledge to generate better designs in less time and ones that are easier to manufacture with high quality.
Earnings Before Interest and Taxes EBIT: A measure of a company's earning power from ongoing operations, equal to earnings revenues minus cost of sales, operating expenses, and taxes before deduction of interest payments and income taxes. Also called operating profit. See Earnings Before Interest and Taxes EBIT. See Engineering Change Order ECO. Economic Order Quantity EOQ: An inventory model that determines how much to order by determining the amount that will meet customer service levels while minimizing total ordering and holding costs.
Economic Value Added EVA: A measurement of shareholder value as a company's operating profits after tax, less an appropriate charge for the capital used in creating the profits. A phenomenon whereby larger volumes of production reduce unit cost by distributing fixed costs over a larger quantity. See Efficient Consumer Response ECR. See Electronic Data Interchange EDI. Communication between partners in the form of a structured set of messages and service segments starting with an interchange control header and ending with an interchange control trailer.
In the context of X. See Electronic Data Interchange Association EDIA. Electronic Data Interchange for Administration, commerce, and Transport. The United Nations' EDI standard. Criteria that define the data content and format requirements for specific business transactions e. Using standard formats allows companies to exchange transactions with multiple trading partners more easily.
American National Standards Institute. A functional group of one or more EDI transactions that are sent to the same location in the same transmission, and are identified by a functional group header and trailer. Efficient Consumer Response ECR: A demand-driven replenishment system designed to link all parties in the logistics channel to create a massive flow-through distribution network.
Replenishment is based on consumer demand and point-of-sale information. See Electronic Funds Transfer EFT. Also written as e-commerce.
Conducting business electronically via traditional EDI technologies, or online via the Internet. In the traditional sense of selling goods, it's possible to do this electronically because of certain software programs that run the main functions of e-commerce support, such as product display, ordering, shipment, billing, and inventory management.
Electronic Data Interchange EDI: Intercompany, computer-to-computer transmission of business information in a standard format. For EDI purists, computer to computer means direct transmission from the originating application program to the receiving or processing application program.
An EDI transmission consists only of business data, not any accompanying verbiage or free-form messages. Purists might also contend that a standard format is one that is approved by a national or international standards organization, as opposed to formats developed by industry groups or companies.
Electronic Data Interchange Association: A national body that propagates and controls the use of EDI in a given country. All EDIAs are nonprofit organizations dedicated to encouraging EDI growth. The EDI in the United States was formerly TDCC and administered the development of standards in transportation and other industries. Electronic Funds Transfer EFT: A computerized system that processes financial transactions and information about these transactions or performs the exchange of value.
Sending payment instructions across a computer network, or the company-to-company, company-to-bank, or bank-to bank electronic exchange of value. The computer-to-computer exchange of messages. E-mail is usually unstructured free-form rather than in a structured format. A prohibition upon exports or imports, either with specific products or specific countries.
Pertaining to a statement or formula based on experience or observation rather than on deduction or theory. A product sold as a completed item or repair part; any item subject to a customer order or sales forecast. Inventory on hand that will satisfy future demand for products that are no longer in production at your company. The final buyer of the product who purchases the product for immediate use.
A revision to a drawing or design released by engineering to modify or correct a part. The request for the change can be from a customer or from production, quality control, another department, or a supplier. Engineering Change Order ECO: A documented and approved revision to a product or process specification.
A process in which the manufacturing organization must first prepare engineer significant product or process documentation before manufacture may begin. A term used for goods in transit or on the way to a destination. Enterprise Application Integration EAI: A computer term for the tools and techniques used in linking ERP and other enterprise systems together.
Linking systems is key for e-business. Enterprise Resource Planning ERP System: A class of software for planning and managing enterprise-wide the resources needed to take customer orders, ship them, account for them, and replenish all needed goods according to customer orders and forecasts. Often includes electronic commerce with suppliers. Examples of ERP systems are the application suites from SAP, Oracle, PeopleSoft, and others.
The document that must be filed with Customs to obtain the release of imported goods and to allow collection of duties and statistics. Also called a Customs Entry Form or Entry. Enveloping is useful where there are multiple documents such as orders or invoices issued to a single trading partner that need to be sent as a packet. Designing features in a product and its packaging that improve recycling, etc. It can include elimination of compounds that are hazardous to the environment.
See Economic Order Quantity EOQ. An electronically coded tag that is intended as an improvement to the UPC bar code system. The EPC is a bit tag which contains a number called the global Trade Identification Number GTIN. Unlike a UPC number, which only provides information specific to a group of products, the GTIN gives each product its own specific identifying number, giving greater accuracy in tracking. The rolling stock carriers use to facilitate the transportation services that they provide, including containers, trucks, chassis, vessels, and airplanes, among others.
An identifier assigned by the carrier to a piece of equipment. See also Container ID. The process of placing equipment at a selected location. The science of creating workspaces and products which are human friendly to use.
See Enterprise Resource Planning System ERP. See Evaluated Receipts Settlement ERS. See Early Supplier Involvement ESI. A set of guidelines for proper conduct by business professionals. See Economic Value Added EVA. Evaluated Receipts Settlement ERS: A process for authorizing payment for goods based on actual receipts with purchase order data when price has already been negotiated.
The basic premise behind ERS is that all of the information in an invoice has already been transmitted in the shipping documentation. Therefore, the invoice is eliminated and the shipping documentation is used to pay the vendor. A deviation from the class rate; changes exceptions made to the classification. A shipper agrees to use only a conference's member liner firms in return for a 10 to 15 percent rate reduction.
Vehicles that a carrier assigns to a specific shipper for its exclusive use. A for-hire carrier that is free from economic regulation. Trucks hauling certain commodities are exempt from Interstate Commerce Commission economic regulation. By far, the largest portion of exempt carriers transports agricultural commodities or seafood. A computer program that mimics a human expert. Complying with rules for exporting products, including packaging, labeling, and documentation.
An enterprise that brings together buyer and seller for a fee, then eventually withdraws from the transaction. A document required by the U. Treasury department and completed by the exporter to show the value, weight, consignee, destination, etc.
The document serves two purposes: A document secured from a government authorizing an exporter to export a specific quantity of a controlled commodity to a certain country. An export license is often required if a government has placed embargoes or other restrictions upon exports. A private firm that serves as the export department for several manufacturers, soliciting and transacting export business on behalf of its clients in return for a commission, salary, or a retainer plus commission.
The initial document in any international transaction; it details the specifics of the sales agreement between the buyer and seller. A firm that buys domestic products for sale overseas. A trading company takes title to the goods; an export-management company usually does not.
Exporter Identification Number EIN: A number required for the exporter on the Shipper's Export Declaration.
A corporation may use their Federal Employer Identification Number as issued by the IRS; individuals can use their Social Security Numbers. The notion that supply chain partners form a larger entity which works together as though it were a single unit. Extensible Markup Language XML: A computer term for a language that facilitates direct communication of data among computers on the Internet. Unlike the older hypertext markup language HTML which provides data tags that give instructions to a web browser on how to display information, XML tags give instructions to a browser or to application software which help to define specifics about the category of information.
A situation where suppliers are viewed as an extension of the firm's manufacturing capabilities and capacities. The same practices and concerns that are commonly applied to the management of the firm's manufacturing system should also be applied to the management of the external factory. A computer term describing a private network or a secured link on the public Internet that links separate organizations and uses the same software and protocols as the Internet.
Used for improving supply chain management. For example, extranets are used to provide access to a supply chain partner's internal inventory data which is not available to unrelated parties. The price that the seller quotes applies only at the point of origin. The buyer takes possession of the shipment at the point of origin and bears all costs and risks associated with transporting the goods to the destination.
Method frequently used in PMG studies to establish a representative average for a one-year period. A program for organizing work areas. Sometimes referred to as elements, each of the five components of the program begins with the letter "S.
In the UK, the concept is converted to the 5-C program comprising five comparable components: The 5-S program is frequently combines with precepts of the Lean Manufacturing Initiative. Even when used separately, however, the 5-S or 5-C program is said to yield excellent results. Implementation of the program involves introducing each of the five elements in order, which reportedly generates multiple benefits, including product diversification, higher quality, lower costs, reliable deliveries, improved safety, and higher availability rate.
A manufacturer that turns the product of a raw materials supplier into a larger variety of products. A fabricator may turn steel rods into nuts, bolts, and twist drills, or may turn paper into bags and boxes. The physical plant, distribution centers, service centers, and related equipment. Failure Modes Effects Analysis FMEA: A pro-active method of predicting faults and failures so that preventive action can be taken.
A profit level that enables a carrier to realize a rate of return on investment or property value that the regulatory agencies deem acceptable for that level of risk. The value of the carrier's property; the calculation basis has included original cost minus depreciation, replacement cost, and market value. See Full Container Load FCL. The federal agency that administers federal safety regulations governing air transportation. Regulatory agency responsible for rates and practices of ocean carriers shipping to and from the United States.
Forty-foot equivalent unit, a standard size intermodal container. Inventory which is kept at locations outside the four walls of the manufacturing plant i. Parts inventory kept at locations outside the four walls of the manufacturing plant i. A warehouse that stores goods on the goods' owner's property while the goods are under a bona fide public warehouse manager's custody. The owner uses the public warehouse receipts as collateral for a loan.
The percentage of order items that the picking operation actually found. Fill Rates by Order: Whether orders are received and released consistently, or released from a blanket purchase order, this metric measures the percentage of ship-from-stock orders shipped within 24 hours of order "release. Orders that were not shipped within 24 hours due to consolidation but were available for shipment within 24 hours are reported separately. In calculating elapsed time for order fill rates, the interval begins at ship release and ends when material is consigned for shipment.
The highest level assembled product, as it is shipped to customers. This terminology is typically used when products consist of many possible features and options that may only be combined when an actual order is received.
End Item, Assemble to Order. Final Assembly Schedule FAS: A schedule of end items to finish the product for specific customers' orders in a make-to-order or assemble-to-order environment.
It's also referred to as the finishing schedule because it may involve operations other than just the final assembly; also, it may not involve assembly, but simply final mixing, cutting, packaging, etc. The FAS is prepared after receipt of a customer order as constrained by the availability of material and capacity, and it schedules the operations required to complete the product from the level where it is stocked or master scheduled to the end-item level.
The last stopping point for a shipment. An equipment-leasing arrangement that provides the lessee with a means of financing for the leased equipment; a common method for leasing motor carrier trailers. Finished Goods Inventory FG or FGI: Products completely manufactured, packaged, stored, and ready for distribution.
A computer term for a method of protecting the files and programs on one network from users on another network. A firewall blocks unwanted access to a protected network while giving the protected network access to networks outside of the firewall.
In a DRP or MRP system, a planned order whose status has been updated to a fixed order. First In First Out FIFO: In inventory control and financial accounting, this refers to the practice of using stock from inventory on the basis of what was received first and is consumed first. Last In First Out. Market innovator, putting the company in the leadership position.
Costs which do not fluctuate with business volume in the short run. Fixed costs include items such as depreciation on buildings and fixtures. A lot-sizing technique in MRP or inventory management that will always cause planned or actual orders to be generated for a pre-determined fixed quantity, or multiples thereof, if net requirements for the period exceed the fixed order quantity.
Traditionally, all manufacturing costs, other than direct labor and direct materials, that continue even if products are not produced. Although fixed overhead is necessary to produce the product, it cannot be directly traced to the final product. Fixed Quantity Inventory Model: A setup wherein a company orders the same fixed quantity each time it places an order for an item. A flatbed, also called a haul brite, is a type of trailer on a truck that consists of a floor and no enclosure.
A railcar without sides, used for hauling machinery. Ability to respond quickly and efficiently to changing customer and consumer demands.
Materials handling devices that include hand trucks and forklifts. A strategy based on multi-use equipment, skilled workers, innovative senior management to accommodate the continuous change that occurs in the marketplace.
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An identifier associated with the air equipment plane. Typically a combination of two letters, indicating the airline, and three or four digits indicating the number of the voyage. The time required for documents, payments, etc. Goods shipped by suppliers to retailers with all necessary tags, prices, security devices, etc. A storage method where product is presented to picking operations at one end of a rack and replenished from the opposite end.
A process in a distribution center in which products from multiple locations are brought in to the D. Also known as a "cross-dock" process in the transportation business. A term of sale defining who is to incur transportation charges for the shipment, who is to control the shipment movement, or where title to the goods passes to the buyer; originally meant "free on board ship.
Title passes at destination, and seller has total responsibility until shipment is delivered. Title passes at origin, and buyer has total responsibility over the goods while in shipment. An estimate of future demand. A forecast can be constructed using quantitative methods, qualitative methods, or a combination of methods, and can be based on extrinsic external or intrinsic internal factors. Various forecasting techniques attempt to predict one or more of the four components of demand: