| Glossary Term | Explanation |
|---|---|
| 1. 3PL (Third-Party Logistics) | A company that provides logistics services to another company |
| 2. ABC Analysis | A method for inventory categorization based on the value of the items |
| 3. Agile Supply Chain | A flexible supply chain that can quickly respond to changes in demand or supply |
| 4. Bill of Lading (BOL) | A legal document that details the type, quantity, and destination of goods being transported |
| 5. Bullwhip Effect | An extreme fluctuation in demand caused by a small change in consumer demand |
| 6. Capacity Planning | The process of determining the production capacity needed to meet demand |
| 7. Carriage Paid To (CPT) | A trade term that means the seller is responsible for the shipping costs to the buyer’s location |
| 8. Carrier | A company that transports goods or people |
| 9. Cash-to-Cash Cycle Time | The time it takes for a company to convert cash spent on raw materials into cash received for finished goods |
| 10. Certificate of Origin | A document that verifies the country of origin of a product |
| 11. Closed-Loop Supply Chain | A supply chain that incorporates the recovery and recycling of products and materials |
| 12. Co-Manufacturer | A company that produces a product for another company under the other company’s brand name |
| 13. Consignment | A business arrangement where goods are held by one party and sold by another |
| 14. Continuous Replenishment | A system of inventory management that involves frequent and small deliveries of goods to maintain stock levels |
| 15. Contract Manufacturer | A company that produces a product for another company under contract |
| 16. Cost of Goods Sold (COGS) | The direct costs associated with producing and delivering a product to market |
| 17. Cross-Docking | A logistics practice that involves transferring goods from one vehicle to another without the need for warehousing |
| 18. Deadhead | A term used to describe the empty return trip of a trucking or transportation vehicle |
| 19. Demand Forecasting | The process of estimating future demand for a product or service |
| 20. Distribution | The process of getting products from a manufacturer to a retailer or end customer |
| 21. Drop-Shipping | A retail fulfillment method where a retailer does not keep inventory on hand and instead ships products directly from the manufacturer or supplier to the customer |
| 22. Electronic Data Interchange (EDI) | A computer-to-computer exchange of business documents |
| 23. Enterprise Resource Planning (ERP) | A software system that integrates business processes and data into a single system |
| 24. Ex Works (EXW) | A trade term that means the seller is responsible only for making the goods available at their premises and the buyer is responsible for all other costs and risks |
| 25. FIFO (First-In, First-Out) | A method of inventory management where the oldest items are sold or used first |
| 26. Freight Forwarder | A company that arranges transportation and handles logistics for other companies |
| 27. Global Trade Item Number (GTIN) | A unique identifier for a product used in global commerce |
| 28. Green Supply Chain | A supply chain that prioritizes environmental sustainability |
| 29. Incoterms | A set of standardized trade terms used in international commerce |
| 30. In-Transit Visibility (ITV) | The ability to track goods in real-time while they are in transit |
| 31. Inventory Carrying Cost | The cost of holding inventory, including storage, insurance, and obsolescence |
| 32. Inventory Control | The process of managing inventory levels to ensure that there is enough stock to meet demand without incurring excess carrying costs |
| 33. Inventory Turnover | The number of times inventory is sold and replaced in a given period of time |
| 34. Just-in-Time (JIT) | A production and inventory control system where materials and products are delivered just when they are needed |
| 35. Key Performance Indicators (KPIs) | Quantifiable measurements used to evaluate the performance of a business or process |
| 36. Lead Time | The amount of time it takes for a product to be produced and delivered to the customer |
| 37. Logistics | The process of planning, implementing, and controlling the movement of goods and information between points of origin and consumption |
| 38. Make-to-Order (MTO) | A production strategy where products are manufactured only after an order is received |
| 39. Make-to-Stock (MTS) | A production strategy where products are manufactured and stocked in anticipation of customer demand |
| 40. Manufacturing Resource Planning (MRP) | A software system that helps manufacturers plan and control production processes |
| 41. Minimum Order Quantity (MOQ) | The smallest quantity of a product that a supplier is willing to sell |
| 42. Order Fulfillment | The process of receiving, processing, and delivering customer orders |
| 43. Out-of-Stock (OOS) | A situation where a retailer is temporarily or permanently unable to fulfill customer orders for a particular product |
| 44. Perpetual Inventory System | An inventory management system where inventory levels are continuously monitored in real-time |
| 45. Procurement | The process of acquiring goods or services from external sources |
| 46. Product Life Cycle | The stages a product goes through from introduction to decline |
| 47. Production Planning | The process of determining how much of a product to produce and when to produce it |
| 48. Pull System | A production and inventory control system where materials and products are pulled through the production process as they are needed |
| 49. Push System | A production and inventory control system where materials and products are pushed through the production process based on a predetermined schedule |
| 50. Quality Control | The process of ensuring that a product or service meets the required quality standards |
| 51. Quality Management | A set of activities and processes designed to ensure that a product or service meets or exceeds customer expectations |
| 52. Radio Frequency Identification (RFID) | A wireless technology used for tracking and identifying objects |
| 53. Reorder Point (ROP) | The inventory level at which a new order should be placed to avoid stockouts |
| 54. Safety Stock | An extra inventory buffer held to protect against unexpected demand or supply chain disruptions |
| 55. Six Sigma | A set of tools and techniques used to improve quality and reduce defects in a process |
| 56. Supplier Relationship Management (SRM) | The process of managing and optimizing relationships with suppliers |
| 57. Supply Chain | The sequence of activities involved in the production and distribution of a product or service |
| 58. Supply Chain Management (SCM) | The coordination and management of activities involved in the production and distribution of a product or service |
| 59. Supply Chain Visibility | The ability to track and monitor the movement of goods and information throughout the supply chain |
| 60. Total Quality Management (TQM) | A management philosophy that aims to continuously improve quality across all aspects of a business |
| 61. Transportation Management System (TMS) | A software system that helps manage the transportation of goods |
| 62. Value Chain | The series of activities that create and deliver value to customers |
| 63. Vendor-Managed Inventory (VMI) | A system in which the supplier manages the inventory levels of a customer |
| 64. Warehouse Management System (WMS) | A software system that helps manage the operations of a warehouse |
| 65. Work in Progress (WIP) | The unfinished goods or products that are in the process of being manufactured |
| 66. Yield Management | The process of optimizing the price of a product or service to maximize revenue |
| 67. Zero-Based Budgeting (ZBB) | A budgeting technique that requires all expenses to be justified for each new period |
| 68. Zone Skipping | A shipping strategy in which packages are shipped directly from the manufacturer to the customer without being routed through a distribution center |
| 69. ABC Analysis | A method for categorizing items according to their importance, typically used in inventory management |
| 70. Agile Supply Chain | A flexible supply chain that can quickly respond to changes in demand or supply |
| 71. Autonomous Mobile Robots (AMRs) | Robots that can move through a warehouse or distribution center autonomously to perform various tasks |
| 72. Bill of Lading (BOL) | A legal document that details the shipment of goods and serves as a receipt for the carrier |
| 73. Black Swan Event | An unexpected event that has a major impact on a business or industry |
| 74. Bonded Warehouse | A warehouse authorized by customs to store imported goods before they are released for distribution |
| 75. Bottom-Up Planning | A planning approach that starts with the detailed tasks and activities required to complete a project or objective, and builds up to the overall plan |
| 76. Capacity Planning | The process of determining the capacity needed to meet current and future demand for products or services |
| 77. Carrier | A company that provides transportation of goods, such as a trucking company, airline, or shipping line |
| 78. Cash-to-Cash Cycle Time (C2C) | The time it takes for a business to convert its investment in inventory into cash |
| 79. Centralized Inventory Management | A system in which a single entity manages inventory for multiple locations or business units |
| 80. Collaborative Planning, Forecasting, and Replenishment (CPFR) | A supply chain management process in which trading partners collaborate to improve forecasting and replenishment of inventory |
| 81. Consignment Inventory | Inventory that is owned by a supplier but is held by a customer until it is sold, at which point the customer pays the supplier |
| 82. Continuous Improvement | A philosophy and process for continually improving the quality and efficiency of operations |
| 83. Continuous Replenishment | A replenishment strategy in which inventory is constantly replenished based on actual demand |
| 84. Contract Logistics | A logistics service provider that manages all or part of a customer’s supply chain under contract |
| 85. Cost of Goods Sold (COGS) | The direct costs associated with producing and selling a product, including materials, labor, and overhead |
| 86. Countertrade | A trade agreement in which goods or services are exchanged instead of money, often used in international trade |
| 87. Cross Docking | A logistics strategy in which products are transferred directly from inbound trucks to outbound trucks to reduce handling and storage time |
| 88. Cross-Functional Teams | Teams composed of members from different functional areas of an organization who work together to achieve a common goal |
| 89. Customer Relationship Management (CRM) | A strategy and set of technologies used to manage interactions with customers and potential customers throughout the customer lifecycle |
| 90. Customs Broker | A licensed professional who helps importers and exporters comply with customs regulations and facilitate international trade |
| 91. Cycle Counting | A method of inventory counting that involves regularly counting a portion of inventory on a rotating basis rather than counting all inventory at once |
| 92. Deadstock | Inventory that is no longer in demand and is unlikely to be sold |
| 93. Decoupling Point | The point in a supply chain where the push-pull boundary is located and inventory is decoupled from demand variability |
| 94. Demand Planning | The process of forecasting future demand for products or services to ensure that sufficient inventory is available to meet customer needs |
| 95. Demurrage | A charge assessed by a transportation provider for delaying the return of equipment beyond the agreed-upon time |
| 96. Direct-to-Consumer (DTC) | A sales model in which manufacturers sell their products directly to consumers, bypassing traditional retail channels |
| 97. Distribution Center | A facility used to store, package, and distribute products to customers and retail stores |
| 98. Dock Appointment Scheduling | A system used to schedule and manage the arrival and departure of trucks at a warehouse or distribution center |
| 99. Dock Door Management | A system used to manage the allocation and use of dock doors at a warehouse or distribution center to minimize congestion and wait times |
| 100. Double Bottom | A type of truck trailer with two layers of cargo capacity, allowing for more efficient transport of goods |
| 101. Dropshipping | A retail fulfillment method in which the retailer does not keep products in stock, but instead passes customer orders and shipment details to a wholesaler or manufacturer who then ships the products directly to the customer |
| 102. Duty | A tax assessed by a government on imported or exported goods, often used to protect domestic industries from foreign competition |
| 103. Economic Order Quantity (EOQ) | A formula used to determine the optimal order quantity that minimizes the total cost of ordering and holding inventory |
| 104. Electronic Data Interchange (EDI) | A computer-to-computer exchange of business documents such as purchase orders, invoices, and shipping notices between trading partners |
| 105. Enterprise Resource Planning (ERP) | A system that integrates business processes and data into a single platform, typically used for managing inventory, production, sales, and accounting |
| 106. Ex Works (EXW) | A trade term that indicates the seller is only responsible for making the goods available at their premises, and the buyer is responsible for all other costs and risks associated with shipping the goods to their final destination |
| 107. Export | The act of sending goods or services to another country for sale or trade |
| 108. External Logistics Provider | A third-party logistics provider that specializes in managing the transportation, warehousing, and distribution of goods on behalf of a company |
| 109. Facility Layout | The physical arrangement of machines, equipment, and people within a facility to optimize workflow and minimize wasted space and time |
| 110. FIFO (First In, First Out) | A method of inventory valuation and management that assumes the first items received are the first items sold or used, reducing the risk of product obsolescence and spoilage |
| 111. Fill Rate | The percentage of customer orders that are filled completely and on time |
| 112. Finished Goods | Completed products that are ready for sale or distribution to customers |
| 113. Fixed Costs | Expenses that do not vary with changes in production or sales volume, such as rent, salaries, and insurance |
| 114. Fleet Management | The process of managing a company’s fleet of vehicles, including acquisition, maintenance, and disposal |
| 115. Forecasting | The process of estimating future demand for products or services to inform production, inventory, and resource planning |
| 116. Freight | The cost of shipping goods from one location to another |
| 117. Freight Forwarder | A company that arranges transportation services for shippers and coordinates the movement of goods from one location to another |
| 118. Fulfillment Center | A warehouse or distribution center that specializes in order fulfillment, including picking, packing, and shipping products to customers |
| 119. FOB (Free On Board) | A trade term that indicates the seller is responsible for delivering the goods to the port of shipment and loading them onto the ship, but the buyer is responsible for all other costs and risks associated with shipping the goods to their final destination |
| 120. Forecast Error | The difference between actual demand and forecasted demand, which can result in excess inventory or stockouts |
| 121. Freight Bill | A document that outlines the terms and conditions of a shipment, including the carrier, consignor, consignee, origin, destination, and charges |
| 122. Freight Claim | A formal request for reimbursement or compensation for loss or damage to goods during transit |
| 123. Globalization | The process of expanding business operations and trade relationships across international borders |
| 124. Green Logistics | The practice of incorporating environmental sustainability into logistics operations, including reducing emissions, conserving resources, and minimizing waste |
| 125. Gross Margin | The difference between revenue and cost of goods sold, expressed as a percentage of revenue, and used to measure profitability |
| 126. Handling Unit | A package, pallet, or container that is used to transport or store goods |
| 127. Incoterms | A standardized set of international trade terms that define the responsibilities of buyers and sellers in the delivery of goods |
| 128. Inventory | The quantity of goods that a company has on hand, including raw materials, work-in-progress, and finished goods |
| 129. Inventory Control | The process of managing and monitoring inventory levels, including ordering, receiving, storing, and tracking goods |
| 130. Inventory Management | The process of planning, organizing, and controlling inventory levels to meet customer demand while minimizing costs |
| 131. Just-In-Time (JIT) | A lean manufacturing and inventory management strategy that aims to minimize inventory levels by producing goods only when they are needed and in the quantities required |
| 132. Kanban | A visual scheduling system that uses cards or other signals to signal the need for production or movement of goods in a just-in-time environment |
| 133. Key Performance Indicator (KPI) | A measurable value that indicates how well a company is achieving its goals and objectives, used to track and evaluate performance |
| 134. Lead Time | The time it takes for an order to be fulfilled, from the point of order placement to delivery to the customer |
| 135. Lean Manufacturing | A production philosophy that emphasizes minimizing waste, reducing inventory, and improving efficiency and quality |
| 136. Logistics | The process of planning, implementing, and controlling the movement of goods, services, and information between the point of origin and the point of consumption |
| 137. Logistics Network | The collection of transportation, storage, and distribution channels used by a company to move goods from suppliers to customers |
| 138. Logistics Planning | The process of determining the most efficient and effective logistics strategies for a company, including transportation modes, routes, and scheduling |
| 139. Make-to-Order (MTO) | A production strategy where goods are only produced after an order has been received, typically used for customized or specialized products |
| 140. Make-to-Stock (MTS) | A production strategy where goods are produced in advance of customer orders and held in inventory, typically used for standard or mass-produced products |
| 141. Material Requirements Planning (MRP) | A computer-based inventory management system that uses data about customer orders, lead times, and inventory levels to determine when and how much to order of each component or material needed for production |
| 142. Minimum Order Quantity (MOQ) | The minimum quantity of a product that a supplier will sell, typically used to ensure that the supplier’s costs are covered |
| 143. Offshoring | The process of relocating business processes or production to a foreign country, typically to take advantage of lower labor costs or other benefits |
| 144. Onshoring | The process of relocating business processes or production to the same country, often in response to rising costs or quality issues associated with offshoring |
| 145. Operations Management | The process of designing, operating, and controlling the systems and processes used to produce goods or services, including inventory management, capacity planning, and quality assurance |
| 146. Order Fulfillment | The process of receiving, processing, and delivering customer orders, including picking, packing, and shipping products |
| 147. Outsourcing | The process of contracting with an external company to perform a business process or service, typically to reduce costs or focus on core competencies |
| 148. Procurement | The process of acquiring goods or services from suppliers, including sourcing, negotiating contracts, and managing supplier relationships |
| 149. Production Planning | The process of determining the optimal production schedule and resources needed to meet customer demand, including capacity planning and scheduling |
| 150. Pull System | A production control system where production is initiated in response to customer demand, often using a just-in-time inventory system |
| 151. Push System | A production control system where production is initiated based on a forecast of future demand, often using a make-to-stock inventory system |
| 152. Quality Assurance | The process of ensuring that products or services meet or exceed customer expectations, often including inspection, testing, and certification |
| 153. Quality Control | The process of monitoring production processes and outputs to ensure that products or services meet or exceed customer expectations, often including statistical process control techniques |
| 154. Reorder Point | The inventory level at which a new order should be placed to ensure that there is enough stock to meet customer demand without excessive inventory carrying costs |
| 155. Reverse Logistics | The process of managing the return of goods from customers or retailers back to the manufacturer or supplier, including product disposition and disposition of returned materials |
| 156. Safety Stock | The inventory held as a buffer against unexpected demand or supply chain disruptions |
| 157. Six Sigma | A data-driven methodology for improving business processes by reducing variability and defects |
| 158. SKU (Stock Keeping Unit) | A unique identifier for a specific product or item in inventory, used for tracking and managing stock levels |
| 159. Sourcing | The process of identifying and selecting suppliers for goods or services, often involving cost and quality analysis |
| 160. Strategic Sourcing | A comprehensive approach to sourcing that considers both short-term and long-term business goals, including cost reduction, risk management, and supplier relationship management |
| 161. Supply Chain | The network of organizations and activities involved in delivering a product or service to customers, including suppliers, manufacturers, distributors, and retailers |
| 162. Supply Chain Management | The coordination and optimization of all activities involved in the supply chain, from procurement to delivery, to meet customer requirements at the lowest possible cost |
| 163. Supplier Relationship Management (SRM) | The process of developing and maintaining effective relationships with suppliers to ensure reliable and cost-effective delivery of goods or services |
| 164. Total Cost of Ownership (TCO) | The sum of all costs associated with a product or service, including acquisition, operation, maintenance, and disposal |
| 165. Value Chain | The series of activities that add value to a product or service, from raw materials to delivery to the end customer |
| 166. Vendor | A supplier or seller of goods or services |
| 167. Vendor-Managed Inventory (VMI) | A supply chain strategy in which the supplier is responsible for managing and replenishing the customer’s inventory levels based on demand data shared by the customer |
| 168. Warehouse | A facility for storing and managing inventory, typically with specialized equipment and systems for efficient storage and retrieval |
| 169. Warehouse Management System (WMS) | A software system for managing warehouse operations, including inventory tracking, order fulfillment, and labor management |
| 170. Work-in-Progress (WIP) | The inventory of unfinished or partially finished products in a manufacturing process |
| 171. Yard Management System (YMS) | A software system for managing trailer movements and dock assignments in a warehouse or distribution center yard |
| 172. Zero-Based Budgeting (ZBB) | A budgeting technique that requires managers to justify all expenses, rather than simply adjusting the previous year’s budget |
| 173. Zone Skipping | A logistics strategy in which shipments bypass intermediate distribution centers and are delivered directly to the end customer from the manufacturer or supplier |
| 174. 3PL (Third-Party Logistics) | A company that provides logistics services to other companies, including transportation, warehousing, and inventory management |
| 175. 4PL (Fourth-Party Logistics) | A company that manages multiple logistics providers on behalf of a client, often using advanced technology and analytics to optimize the supply chain |
| 176. ABC Analysis | A method of categorizing inventory based on its value and importance, with A items being the most valuable and important |
| 177. Agile Supply Chain | A supply chain that is designed to be flexible and responsive to changing customer demands and market conditions, often using techniques such as just-in-time (JIT) inventory management and rapid prototyping |
| 178. AS/RS (Automated Storage and Retrieval System) | A computer-controlled system for automatically storing and retrieving inventory, typically using a combination of automated cranes, conveyors, and storage racks |
| 179. Backhaul | The process of using a truck’s return trip to carry cargo, typically to avoid an empty trip and reduce transportation costs |
| 180. Bill of Materials (BOM) | A document that lists all the components and raw materials needed to manufacture a product, including quantities and specifications |
| 181. Black Swan Event | An unexpected and rare event with significant impact on the supply chain, such as a natural disaster, political upheaval, or global pandemic |
| 182. Bottleneck | A point in the supply chain where capacity is limited, causing delays and increasing lead times |
| 183. Bullwhip Effect | The phenomenon of demand variability increasing as orders move upstream in the supply chain, often caused by miscommunication and a lack of coordination between partners |
| 184. Capacity Planning | The process of determining the production capacity needed to meet demand, and balancing that capacity with inventory levels and other resources |
| 185. Carrier | A company that provides transportation services, such as a trucking company, shipping line, or airline |
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