| A (top) |
|
| Absorption Costing |
Applying
variable and fixed costs to the value of inventory. |
| Activity-Based
Costing |
An
accounting system that measures cost and performance of specific
logistics activities. |
| Ad Hoc Order |
Urgent
order that needs to be fulfilled in a short time and without prior
notice |
| AGR (Arrival
Goods Notice) |
A
report that contains detail arrival goods information. |
| Aisle |
A
passageway between racks or blocks of inventory. |
| ALES (Axapta
Logistics Execution System) |
A
logistics management system that combines features of ERP & SCM. |
| Ambient area |
Warehouse
with normal room temperature ≦32℃ & relative humidity≦80% |
| APS (Advanced
Planning and Scheduling) |
A
subcomponent of supply chain planning, typically contextually describing
manufacturing planning and scheduling. |
| ASN (Advanced
Ship Notice) |
Electronic
message, including electronic data interchange (EDI) or Extensible
Markup Language (XML), giving notification of product due prior
to receipt. |
| ATO (Assemble-to-Order) |
Strategy
allowing a product or service to be made to specific order, where
a large number of products can be assembled in various forms from
common components. This requires sophisticated planning processes
to anticipate changing demand for internal components or accessories
while focusing on mass customization of the final products to individual
customers. |
| ATP (Available-to-Promise) |
Uncommitted
inventory and planned production in master scheduling to support
customer order promises. |
| Automated Storage
and Retrieval System (AS/RS) |
Computer-driven
highrise system used to store and select cases or items automatically.
A system typically consists of highrise shelving, multi-level conveyors,
and highrise industrial truck equipment. |
| Automatic Replenishment |
An
extension of QR and CR where suppliers assume responsibility for
retail inventories and replenishment |
| Automation |
The
combination of hardware (computer), software (programs and design),
and machines (conveyors, etc.) to accomplish a series of deci-sions
and interrelated physical tasks in a logical sequence (e.g., storage
and replenishment, case selection, and automatic sorting). |
| Average Inventory |
The
average inventory level over a period of time. |
| B (top) |
|
| B/O/H |
Balance-On-Hand
- an inventory of product in the warehouse shown as warehouse total,
reserve total, and pick location total. |
| B2B (Business-to-Business) |
e-commerce
term for communications between companies and their suppliers |
| B2C (Business-to-Consumer) |
e-commerce
term for communications between companies and their customers |
| B2G (Business-to-Government) |
Business
activity between business entity and government |
| Back Order |
The
automatic addition of the out-of-stocks listed on one order to another
shipment being delivered to a retail store. There are two types
of back orders: 1) receiving - coming from a supplier or vendor
(the back order is sent with the next order), and 2) shipping -
going to a customer (send the back order with the next order). |
| Backhaul |
In
a distribution center operation, a merchandise shipment (usually
from a supplier) brought back to the wholesale facility on the return
trip of a truck that has made deliveries to retail stores. |
| Barge |
A
flat-bottomed vessel towed or pushed by another craft for transporting
freight in rivers. |
| Batch Picking
(Batch Selection) |
A
method of order selection in which several orders for different
cus-tomers, or a "batch" of them, are picked together. Generally,
a number of selectors work at the same time in different sections
of the facility to pick the batch. |
| Benchmarking |
The
comparison of performance against practices of leading companies
for the purpose of improving performance. |
| Best Practice |
State-of-industry
performance or application. |
| Bill of Lading |
A
document issued by a carrier that records the receipt of goods for
shipment and the contract terms. It is not an invoice. |
| Block Stack |
Goods
on a pallet and are stacked up one by one without racks. |
| Break-Bulk |
The
separation of consolidated bulk load into smaller individual shipments. |
| Broker |
A
person or agency that acts as the agent for another. |
| Build-to-Order |
Product
or service to be made upon receiving order. |
| C (top) |
|
| Call Center |
A
service center with customer service staff in responding to customer's
day-to-day inquiries. |
| Capable-to-Promise
(CTP) |
Refers
to a system that allows an enterprise to commit orders against available
capacity, as well as inventory. These systems are evolving to include
multiple sites, as well as the entire distribution network. |
| Capacity Planning |
Capacity
planning specifies the level of resources (e.g., facilities, equipment
and labor force size) that best supports the enterprise's competitive
strategy for production. |
| Cargo |
The
freight carred by a ship, aircraft, truck or other vessel or vehicle. |
| Carrier |
Any
individual, company, or corporation engaged in transporting goods. |
| Carrousel |
A
type of equipment used for selection with trays that rotate in a
circular motion and bring the product directly to the selector. |
| Cart |
A
manually pushed or pulled platform that has a handle and four wheels.
It is used to move merchandise in the facility. |
| Case |
The
storage case that is taken in at receiving. This can vary from a
ven-dor case when it is split during receiving. The column in a
table repre-sents the number of retail units in a case. |
| Case Cube |
The
cubic size (usually in cubic feet) of a case computed by multiply-ing
the length times the width times the height of the case (L x W x
H). |
| Case Cube Arrangement |
An
approach to merchandise layout in which case dimensions are the
criteria. All products packaged in the same-size shipping containers
are grouped and stored near one another. This arrangement helps
selectors build solid pallet loads. |
| Case Lot |
A
complete, unopened case of goods. Case lot also refers to a group
of cases of goods purchased at one price, instead of being priced
by the case. |
| Case Pack |
The
number of selling units in a shipping case. |
| CBM (Cube Meter) |
The
cubic size of goods computed by Length x Width X Height in the unit
of meter. |
| C-Commerce |
Refers
to collaborative, electronically enabled business interactions among
an enterprise's internal personnel, business partners and customers
throughout a trading community. The trading community could be an
industry, industry segment, supply chain or supply chain segment
(see Research Note SPA-08-5311). |
| Central Warehouse |
A
warehouse that all goods are gathered at one place and then distribute
to different points. |
| Claim |
A
document that provides evidence needed to prove loss due to damage,
shortage, or overcharge. |
| Clear Height
(Stacking Height) |
The
functional height of the facility - the maximum height to which
pallets of merchandise can be safely and conveniently stacked. A
three-foot open space must always be maintained above the clear
height. |
| Code-Dated |
Merchandise
bearing a date code indicating when a product was pack-aged, placed
on display, or should be sold. Code dates facilitate rotation and
help prevent the sale of off-quality items. |
| Collaborative
Commerce |
suppliers,
retailers and logistics companies sharing information for optimum
supply chain efficiency |
| Collaborative
Planning Forecasting and Replenishment (CPFR) |
Data
and process model standards developed for collaboration between
suppliers and an enterprise with proscribed methods for planning
(agreement between the trading partners to conduct business in a
certain way); forecasting (agreed-to methods, technology and timing
for sales, promotions, and order forecasting); and replenishment
(order generation and order fulfillment). The Voluntary Inter-Industry
Commerce Standards (VICS) committee, a group dedicated to the adoption
of bar-coding and EDI in the department store/mass merchandise industries,
has established CPFR standards for the consumer goods industry that
are published by the Uniform Code Council (UCC). |
| Commodities |
Basic
food items, many of which are raw materials from which pro-cessed
foods are made. These are the speculative items of the food industry
(e.g., wheat, corn). |
| Commodity Grouping
(Family Grouping) |
Collection
of merchandise, similar in nature and arranged together in a retail
store (e.g., pet foods in the dry grocery category). |
| Common Carrier |
A
for-hire carrier that serve general public at reasonable rates. |
| Compartmentalized
Trailer |
A
trailer divided into three sections to accommodate combination loads.
There is one section for frozen foods, another for refrigerated
perishables, and a third for non-refrigerated products (e.g., dry
grocer-ies). |
| Component |
A
part of a system or mechanism. |
| Consignee |
The
receiver of a freight shipment. |
| Consignor |
The
sender of a freight shipment, usually the seller. |
| Consolidation |
The
act of assembling less-than-truckload (LTL) shipments into truck-load
(TL) shipments. |
| Continuous Moves |
Normally
used in conjunction with private truck fleets in process industries
to keep the trucks moving with different loads and driver crews
on regular routes with just-in-time materials. This concept is being
adopted by public fleets to utilize their assets more effectively. |
| Conveyor |
A
flexible band or belt used to transport cases or products from one
place in a facility to another. |
| Conveyor Pick-To-Belt
System |
A
pick method used by selectors to move cases or items out of storage.
The merchandise may move to sorting and consolidation areas or go
directly into trailers for delivery to retail stores. |
| Coordinates (X,Y,Z) |
The
distance (in inches) from the warehouse origin point (0,0,0) along
the X-, Y-, or Z-axis, identifying a specific location. |
| Core Competency |
A
company's primary functions which is essential to its success. |
| Cost and Freight(CNF) |
price
includes goods and transport. |
| Counterbalanced
Forklift |
A
type of industrial lift truck that can carry heavy loads on forks
extending in front of the unit. The truck's weight, plus the weight
at the back end of the machine, counter-balances the weight of the
pallet it picks up. Because this equipment has a wide turning radius,
it requires aisles 10 to 12 feet (3 - 3.7 meters) wide. |
| CRM (Customer
Relationship Management) |
The
management of maintaining long-term business relationship between
business and customers. |
| Cross Aisle Passage |
An
access aisle used by selectors to avoid going to the end of a long
aisle. This aisle crosses perpendicular to the selection aisles. |
| Cross Aisle Pick
Pattern |
A
selection method where the selector works back and forth on alter-nate
sides of an aisle. |
| Cross Docking |
Product
(usually in pallet quantities) is designated for certain customers
before or at the time of delivery. The product is taken directly
from the inbound dock to the outbound dock. Note: The received quantity
is not added into the inventory. |
| Cube |
The
total capacity of a warehouse, truck, back room, re-pack room, pal-let,
shelf, or product, including vertical and horizontal dimensions. |
| Customization |
A
product or service is modified according to customer's requirement. |
| Customs |
The
process of inspecting imported or exported goods to determine if
and how much duty is required. |
| Customs Duties |
Taxes
collected by states upon imports to their territory. |
| Cycle Count |
Periodical
stock check to ensure the accuracy between physical inventory and
book record. |
| Cycle Time |
The
amount of time it takes to complete a business process. |
| D (top) |
|
| Date Code |
A
code attached to merchandise to show when it was packaged, placed
on display, should be removed from display, or should be used. Codes
facilitate rotation and help prevent the sale of off-quality items.
See Code-Dated. |
| Deadhead |
A
truck returning empty to the distribution center. |
| Dead-Pile Loading |
Manual
stacking of cases on the floor of trucks or rail cars. |
| Dedicated Carriage |
A
third-party service that dedicates equipment and drivers to a single
customer for its exclusive use. |
| Demand Chain |
It
emphasis on customer or end-user demand pulling materials and product
through the chain. |
| Demand Management |
The
process of matching future demand with (sometimes constrained) projected
available supply. |
| Demand Planning
(DP) |
The
process of forecasting and managing the demand for products and
services by end users, as well as by intermediate supply chain members. |
| Deployment Planning
and Scheduling |
Specifications
on how to deploy available supplies to satisfy demand requirements. |
| Detention Charge |
A
penalty charge against shippers or receivers for delaying trucks
beyond an allotted time. |
| Devanning |
Goods
are moved out of the container. |
| Direct Labor |
Labor
that is used to handle merchandise physically. It is used as the
traditional basis for comparison of performance. |
| Distribution |
The
movement of products from where they are made to where they are
used. There are four levels of food store distribution: manufacturing,
wholesaling, retailing, and consuming. |
| Distribution
Center |
Wholesale
facility of a chain-store company or distributor. |
| Distribution
Channel |
The
selling channels supported by an enterprise. These may include retail
sales, distribution partner (e.g., wholesale) sales, original equipment
manufacturer (OEM) sales, Internet exchange or marketplace sales,
and Internet auction or reverse auctions sales. |
| Distribution
Planning |
The
ability to assess where products and services should be deployed
and determine the stock-keeping unit/location-level replenishment
plan. |
| Distributor |
Generally
refers to a wholesaler. However, it also refers to a specialized
wholesaler who handles one brand or category of product (e.g., appliances,
automotives, and glassware). |
| Dock |
A
collection of dock doors where trucks or rail cars are loaded (shipping)
or unloaded (receiving). |
| Dock Door |
Used
to load or unload trailers or vans. Each dock door is identified
individually within the system. |
| Documentary Credit |
Many
types of documents used between buyers and sellers and their respective
banks to support payment and transfer title for goods shipped. May
be in the form of letters of credit (LOC or L/C), bank guarantees,
or forwarder cargo receipts (FCR). |
| Double-Deep Storage |
A
location with pallets placed two deep into a rack or floor slot. |
| Double-Length
Pallet Jack |
A
pallet jack that can accommodate two pallets per trip. See also
Pallet Jack. |
| Drayage |
A
service offered by motor carrier for cartage of rail or ocean containers
from a dock to an intermediate or final destination. |
| Drive-In Rack |
See
Rack. |
| Drive-Through
Rack |
See
Rack. |
| Drops |
The
action of goods to be delivered to customer. |
| Dry Grocery |
Non-perishable,
unrefrigerated packaged products found in food stores. |
| Dry Grocery Nonfoods |
Nonfood
products that are bought by the grocery buyer, handled in the main
grocery warehouse, ordered by stores in full cases, and displayed
in stores on standard shelving. Examples include household cleaning
products, paper napkins, laundry detergents, and insect repellents. |
| Dunnage |
Loose
material used around cargo to prevent damage. |
| Duty Drawback |
The
process of obtaining refunds of duty from customs when exporting
an article in the same condition as imported, or when imported parts
are included in a manufactured article. Similar to European outward
processing and inward processing regimes. |
| E (top) |
|
| E-Commerce |
The
simplest meaning can be conducting business online. http://www.netlingo.com/lookup.cfm?term=e-commerce |
| ECR (Efficient
Consumer Response) |
A
consumer goods (primarily grocery) initiative aimed at reducing
inefficient practices and waste in the supply chain. |
| EDI (Electronic
Data Interchange) |
A
computer system developed in 1982 that enables companies to communicate
electronically using Uniform Communications Standards (UCS). EDI
can be used for order entry, invoices, and correspondence which
eliminates the need for typewritten documents. |
| EFR (Efficient
Food Service Response) |
A
food service initiative aimed at reducing inefficient practices
and waste in the supply chain. |
| Electronic Ordering |
Ordering
merchandise from suppliers through a computer hook up. |
| EOQ (Economic
Order Quantity) |
An
inventory model that determines order quantity that meet customer
service levels while minimizing total holding costs. |
| F (top) |
|
| 4PL (Fourth Party
Logistics) |
A
supply chain co-ordination and management by an entity that does
not supply (operate) underlying logistical services. |
| FCL (Full-Container
Load) |
The
merchandise loaded in the container is all from the same customer. |
| FGI (Finished
Goods Inventory) |
Products
completely manufactured, packaged, stored, and ready for distribution. |
| FIFO (First-In,
First-Out) |
Using
the first-in, first-out (FIFO) method to stock and sell merchan-dise;
the oldest is sold first to ensure quality and freshness. Rotation
is often guided by code-dating. |
| Fill Rate |
The
percentage of order items that picking operation fills within a
given time. |
| Fixed Costs |
Costs
which do not fluctuate with business volume in the short run. |
| Fixed Slot |
A
preassigned and permanent location on the selection line for a particular
item or case(s) of merchandise. See also Floating Slot. |
| Fixed-Measure
Trade Item |
An
item always produced in the same predefined version (e.g., type,
size, weight, content and design) that may be sold at any point
in the supply chain. |
| Floating Slot |
A
random location on the selection line for a particular item or case
of merchandise. Inbound pallets are placed in the first available
open slot (or in several different, non-adjoining slots). See also
Fixed Slot. |
| Floor Chain Towveyor |
An
in-floor, motor-driven, endless chain to which four-wheel flatbed
trucks are attached and then towed around the facility in a fixed
pattern. |
| Floor Slot |
A
location on the selection line that consists of floor space for
the stacking of merchandise. |
| Flow Thru |
Generates
shipping instructions at the point of receipt, which eliminates
the need for product to be put-away in the warehouse. Instead, the
product can be directly transferred from an inbound trailer directly
to an outbound trailer. |
| FMCG (Fast Moving
Consumer Product) |
General
consumer merchandises with short storage time in warehouse. |
| FOB (Free on
Board) |
Contractual
terms between buyer and seller which define where title is transferred. |
| FOB Destination |
Title
passes at destination, seller has total responsibility until shipment
is delivered. |
| FOB Origin |
Title
passes at origin, buyer has total responsibility over the goods
while in shipment. |
| Forklift |
A
mechanical device used to transport pallet loads to or from storage. |
| Forward Location |
The
primary location from which the specified product is selected. |
| Free Trade Zone |
An
area designated by the government of a country for free trade |
| Freezer Box |
A
heavily insulated corrugated container that maintains temperatures
of products. |
| Freight Charge |
The
cost of transporting goods from the seller's warehouse to the buyer's
warehouse or store. Prepaid usually means freight costs are paid
by the seller who forwards no bill to the customer. Full Freight
Allowed usually means that the seller will ultimately pay freight
costs; however the seller may ship goods collect and require the
buyer to pay the freight bill. The buyer may then either invoice
the seller or deduct the freight charges from the remittance to
the seller for goods received. FOB (Free on Board) specifies payment
of freight charges one of two ways. FOB Destination means a shipment
is moved free on board to a destination; the seller pays the freight.
FOB Factory (the point of ori-gin) means a shipment is loaded free
on board at the point of origin; the buyer pays for the freight.
Collect on Delivery (COD) means the buyer pays for the freight at
the time of receipt. |
| From Location |
The
type of location or location ID from which the product is currently
being moved. |
| FTZ (Foreign
Trade Zone) |
A
zone set aside near a port, controlled by Customs Service for holding
goods duty-free pending customs clearance. |
| Fulfillment |
The
process of completing transactions. |
| Full Pallet Select |
A
full pallet select occurs when the ordered quantity is the same
as the quantity on a full pallet. The selection is usually performed
by a fork-lift. |
| G (top) |
|
| General Merchandise
(GM) |
Merchandise
not considered a part of the regular grocery line, such as books,
housewares, records, and clothing. This excludes soap, paper towels,
light bulbs, shoe polish, and other products known as nonfoods. |
| Geo-Coding |
Identifying
narrow locations by the use of three-, four- or five-digit ZIP Codes
or other identifiers (depending on country) to allow mapping, planning
and execution of deliveries. |
| Globalization |
The
process of making business worldwide in scope or application. |
| Glocalization |
Compound
word of Globalization & Localization, means a product go global
but modified to meet the market's preference. |
| GOH |
Abbreviation
of Garment On Hang, versus garment flat pack. |
| GPS |
The
abbreviation of Global Positioning System used to keep track object's
movement. |
| Gravity-Flow
Rack |
A
series of inclined shelves with rollers replenished from the rear.
As one unit is selected, another automatically moves forward. |
| H (top) |
|
| Handling Costs |
The
cost involved in moving, transferring, preparing, and otherwise
handling inventory. |
| Handling In |
The
process of goods receiving from customer's supplier |
| Handling Out |
The
process of goods picking & packing in the warehouse before delivery. |
| Handling Unit |
Goods
or aggregation of goods bundled together for distribution and logistics
purposes. May include an individual item in a carton, combined items
on pallets and skids, or items transferred in independently identified
containers, such as ocean containers, rail cars or trucking trailers. |
| Harmonized Tariff
Code |
A
code to numerically describe all articles in international trade
managed by the World Customs Organization. |
| Hazardous Class/Indicator |
Indicates
whether the product is a hazard or source of danger. This prevents
non-hazardous product from being mixed with hazardous products.
The class indicates the category of hazardous material. |
| Hub |
A
center of activity or interest; a focal point. |
| Hundredweight
(cwt) |
A
pricing unit used in transportation (equal to 100 pounds). |
| I (top) |
|
| IGR (Incoming
Goods Report) |
The
report that records details of goods received. |
| In Transit |
A
term to descript the goods is being delivered. |
| Inbound |
The
flow of products into a distribution center prior to order selection. |
| Indirect Labor |
Labor
that does not handle merchandise physically (i.e., supervision,
record handling, inbound checking, stock control, and housekeeping). |
| Information Infrastructure |
A
structured collection of information system components and organization
processes enabling flow of information to effect enterprise integration. |
| Information Oscillation |
A
concept that identifies the need to manage information in the supply
chain, taking into account such factors as time zones, shipping
and receiving schedules, and open and closed days. As near-real-time
event information is provided in collaborative environments, work
process rules must account for escalation processes to allow for
human intervention in continuous operations. |
| Inland |
A
term used to differentiate between land and water segments of a
transshipment. |
| Inner Pack |
A
unit that is a multiple of a storage case. Normally this is some
shrink-wrapped or bundled quantity of retail units within a case.
The inner pack is made up of one or many retail units. This quantity
is not required to equal the number of retail units in a shipping
unit. |
| Integrated Logistics |
A
comprehensive supply chain as a single process, from raw materials
supply to finished goods distribution. |
| Intelligent Transportation
Systems (ITS) |
Blanket
term for wide array of technologies used in transportation process. |
| Intermodal Transportation |
Transporting
freight by using two or more transportation modes. |
| International
Terms of Sale (INCOTERMS) |
Established
international terms of sale, published by the International Chambers
of Commerce, that describe the responsibilities between buyers and
sellers when transferring title to goods. These are significantly
different from the American terms of sale commonly used in the United
States. |
| International
Trade Systems (ITS) |
Execution
systems designed to automate the import/export business process.
The basic functional components are trade documentation generation
and transmission, and regulatory compliance validation. |
| Inventory |
All
stock on hand at any given time, either visibly displayed or in
stockrooms and other secured areas. Inventory also refers to compiling
an itemized list of all such items. |
| Inventory Adjustment |
Adjustments
made to the inventory created by the physical inventory and cycle
counting processes. |
| Inventory Carrying
Costs |
A
financial measurement that calculates all costs associated with
holding goods in storage. |
| Inventory Control |
Control
of current stock (shelf, back room, warehouse, on order, etc.) so
that merchandise received conforms to sales demands, and out-of-stocks
or over-stocks are avoided. |
| Inventory Detail |
A
pallet of a single product located in a warehouse location. When
a pallet is put away, the information from the receipt detail is
transferred to the inventory detail. The inventory detail is then
associated with the location. |
| Inventory Management |
The
process of ensuring the availability of products through inventory
administration. |
| Inventory Reduction |
When
inventory is reduced by the allocation of orders (through the BOMB
process). |
| Inventory Turns |
The
cost of goods sold divided by the average level of inventory on
hand. |
| Inventory Velocity |
The
speed with which inventory moves through a defined cycle. |
| Invoice |
A
bill for goods showing the amount owed to a creditor. |
| J (top) |
|
| JIT (Just-In-Time) |
An
inventory management system in which warehouse inventory is maintained
at minimum levels because replenishment stock is immedi-ately available
from suppliers. |
| K (top) |
|
| Kitting |
Light
assembly of components or parts into defined units. |
| L (top) |
|
| Label |
A
pressure-sensitive, adhesive-backed paper (containing product, pric-ing,
and other information) affixed to cases or pallets to identify and
track them through the distribution process. |
| Labor Standards |
Performance
norms for operational tasks in a food distribution center. Labor
standards can be communicated to workers either via electronic devices
or in writing, and become the basis for measuring productivity and
providing feedback to workers. They are frequently tied to worker
incentive programs. |
| LCL (Less-Than-Container
Load) |
The
quantity of freight which is less than that required for the application
of a container load rate. |
| Lead Time |
Total
time from receipt of store order to the scheduled delivery time
of the product at the store. |
| Less-Than-Case-Lot |
Less
than the quantity in one case of a particular item of merchandise. |
| Let Down (Replenishment) |
The
moving of inventory from reserve storage to the active picking slots
below. |
| License Plate |
Normally
a bar code identifying a pallet or quantity of product; can be generic
or system-generated. |
| LIFO (Last-In-First-Out) |
The
newest goods are sold first to ensure quality and freshness. |
| Loading |
The
process of moving goods up or down the container or carrier. |
| Localization |
A
product is adapted for market culture. |
| Logistics |
The
management of a facility's traffic and transportation functions. |
| Lot Number |
The
process of tracking production where units are produced in a batch. |
| LSP |
A
general term for Logistics Service Provider |
| LTL (Less-Than-Truckload) |
A
shipment weighing less than the weight required for a truckload
rate. |
| M (top) |
|
| Malfunction |
A
failure or state of operation outside of specified parameters. |
| Manifest |
An
itemized list of all passengers and cargo onboard a ship or aircraft. |
| Manufacturing
Planning |
Definition
of the weekly or daily production and machine schedules across multiple
plants or lines to meet orders and forecast demand. Some manufacturing
planning modules also incorporate materials planning. |
| Manufacturing
Scheduling |
Generation
of plant-level execution schedules by product and resource (e.g.,
line and machine) and resolution of day-to-day capacity bottlenecks.
Scheduling applications normally include a more granular level of
resource information, and will provide such functionality as sequence
dependent set up, tank scheduling and point-of-use material availability. |
| Marginal Cost |
The
cost to produce one additional unit of output. |
| Markout |
When
the item ordered shows quantity on hand, but the selector is not
able to find the expected quantity. |
| Material Flow |
The
way in which material is moved from one location to another during
a process. |
| Materials Handling
System |
The
system for moving materials throughout a facility, which was cho-sen
from among many types of equipment, both conventional and auto-mated. |
| M-Commerce |
Mobile
Commerce is a form of e-commerce that deals in the fees a company
collects and the content or services offered on mobile devices. |
| Method Study
Review |
Engineers
audit the time standards established (from the time study) for the
job description to make sure the standards are fair and accurate. |
| Mezzanine |
A
partial second floor, larger than a balcony, where the re-pack room,
selection area, and offices are often located in a distribution
facility. |
| Minimum Order
Requirements |
A
minimum quantity of goods (set by the manufacturer or supplier)
that the retailer or wholesaler must order at one time in order
to qualify for a discount. |
| Mixed Load |
A
trailer load that includes more than one product line (i.e., dry
grocer-ies, produce, meat, and dairy products). |
| Modification |
A
change from an original design, plan, or configuration. |
| Move In |
The
process that goods are first moved into a new warehouse facility. |
| Move Out |
The
process that all goods are moved out from the warehouse facility
where it used to store at. |
| Moving Time |
The
time zone of goods in transit to the time that is received by customer. |
| MRP (Materials
Requirements Planning) |
A
decision-making methodology used to determine the timing and quantities
of materials to purchase. |
| Multi-Modal Transportation |
The
process of goods delivery involves more than one kind of transportation
vehicle. |
| N (top) |
|
| Narrow Aisle |
An
aisle that requires special equipment to pick or stock, normally
5 - 6 feet in width. |
| Narrow-Aisle
Straddle Forklift |
A
lift truck designed to work in aisles narrower than 10 feet. It
can stack palletized merchandise 30 feet (9 meters) high. |
| Network Planning |
Used
to determine the overall physical channel (e.g., plants, distribution
centers and warehouses) by which materials are turned into finished
goods and delivered to customers. More recently, network planning
tools have been enhanced for use in strategic business planning
scenarios (e.g., to answer such questions as what should the company's
channel strategies be or what is the impact of switching suppliers).
These tools are usually used for long-term decisions, although enterprises
in more-dynamic environments are employing them on a more-frequent
basis. |
| Numbering System |
A
guide to all the slot locations in the facility, that is essential
for effi-cient storage, replenishment, and selection. The system
chosen depends on the facility's unique needs. Up to ten characters
(alphanumeric) are used to designate aisle, bay, level, and position.
A section ID before the aisle number may also be included. |
| O (top) |
|
| On-Line Monitoring |
A
web-based system that enables customer to remote monitors its goods
related information via internet. |
| On-Line Receiving |
A
computerized system designed to permit direct and immediate trans-mission
of all receiving data from the warehouse dock to the computer. |
| Operation |
An
activity or event; the manner in which something works; a procedure
or process |
| Operational Audit |
An
evaluation of the performance levels of each function within the
distribution center, from receiving through shipping. It aids in
assess-ing the center's ability to respond to corporate and market
needs. |
| Optimization |
The
process of making something as effective as possible with given
resources and constraints. |
| Optimization
Routines |
Routines
used to determine the optimal solution for a particular problem.
Included in supply chain execution and supply chain planning applications
to reduce costs or time in the supply chain. Usually tactically
focused for use in current operations. |
| Order Cycle |
The
time and process involved from the placement of an order to the
receipt of the shipment. |
| Order Processing |
Activities
associated with filling customer orders. |
| Order Selection
(Order Picking) |
One
of the basic operating functions of any distribution center. Products
are selected (picked) from warehouse inventory to fill retail store
orders. |
| Order Tracking |
The
action that order status is keep tracked along the process. |
| Outbound |
The
flow of products out of a warehouse after order selection. |
| Outbound Logistics |
The
movement of products from the end production line to end user. |
| Out-Of-Stock |
Product
not in supply in a warehouse or store. Warehouse "outs" are expressed
as detail items of an order placed that cannot be filled. |
| Outsource |
To
utilize a third-party provider to provide services previously performed
in-house. |
| P (top) |
|
| Packaging |
The
wrapping, dunnage, or container in which something is packed for
storage or shipment |
| Pallet |
A
wooden platform used for stacking unit loads of merchandise. Stan-dard
size is 40" x 48." |
| Pallet Cube |
The
amount of cubic feet of product that is allowed to be shipped or
stored on a pallet. |
| Pallet Facings |
The
side of the pallet facing the aisle from which the stock is picked
or the pallet is handled by a forklift. |
| Pallet Jack |
A
multipurpose handling machine that can move unit loads. There are
two basic designs: the single pallet jack, capable of selecting
or moving one pallet per trip, and the double pallet jack, which
can accommodate two pallets per trip. |
| Palletizing |
The
loading and securing of products in pallet loads. |
| Paperless |
The
use of RF equipment or terminals to perform functions that normally
require paper or labels. |
| Physical Inventory |
An
actual count of all items on-hand at a given time in a facility. |
| Pick & Pack |
Picking
of product from inventory and packing into shipment containers. |
| Pick Label |
A
document used for selection that is applied to the product. |
| Pick List |
An
itemized list of products used in order selection. |
| Pick Rate |
The
amount of time it takes a selector to pick a determined amount of
merchandise. For example, a pick rate might be 170 pieces per hour. |
| Piggyback |
Semitrailer
built with reinforcements to withstand transport by a railroad flatcar. |
| Pilferage |
The
amount of shortages from customer, employee, or vendor theft within
the facility (as opposed to shortages caused by burglaries or rob-beries). |
| Planned Item
Retrieval System (PIR) |
A
method of multilevel order selection used primarily for slow-moving
full-case, and less-than-case-lot products. Based on demand and
item cube, the computer assigns a floating slot to merchandise received.
Order selection is completed using a manually operated cherry picker. |
| POD (Proof of
Delivery) |
Information
supplied by carrier containing detail shipment related information. |
| POS (Point of
Sales) |
The
retail locations where sales transactions occur. |
| Postponement |
The
delay of final activities until the latest possible time. |
| Prepaid |
A
freight term which indicates charges are to be paid by the shipper. |
| Primary Location
(Pick Location, Select Location) |
The
primary location from which selection takes place. |
| Principal |
The
merchandise's owner-of-origin |
| Process Improvement |
Process
which is improved in quality or reduce costs through elimination
of waste or non-value-added tasks. |
| Procurement |
Same
meaning as purchase. |
| Product Detail |
Specific
information about the product, such as a product description, size,
pack, units on order, etc. Note: A product ID may have multiple
product details. The product detail represents a unique pack for
a prod-uct. The system treats each product detail as though it were
a unique product. The different details for a single product are
kept in different locations and primary selections, ensuring that
the product will not mix and will be selected separately. |
| Product ID |
A
unique code identifying a specific product. |
| Product Life |
The
number of days before a product will lose its flavor, taste, or
color appeal. |
| Product Line |
A
group of products with similar uses and characteristics. |
| Productivity |
The
rate of production, often measured in cases per labor hour. Whole-salers
measure productivity to assess labor and operating expenses. |
| Protocol |
A
set of procedures for establishing and controlling data transmission. |
| "Pull" Order
System |
Allows
stores (usually grocery) to order what they want. |
| Purchase Order |
A
document giving a vendor authority to ship specified merchandise
in designated quantities at an agreed-upon time and price. |
| "Push" Order
System |
The
stores (usually retail) are notified as to what items they are getting,
instead of allowing them to order what they want (as in the "Pull"
Order System described above). |
| Put-Away |
Determines
the best reserve or select location to store each pallet received.
Put-away takes into account the stackability of the item, the height
from the floor of a reserve location, whether the product is code-
dated, etc. |
| Q (top) |
|
| Quick Response |
A
business strategy for reducing inventory and shortening cycle time
for production, distribution and sales. |
| R (top) |
|
| Rack |
A
structure used for the optimum storage of palletized loads. A drive-in
rack has horizontal beams running perpendicular to the aisle (so
the rack can be driven partway into). A drive-through rack is similar
to a drive-in rack, except that it can be driven through. |
| Rack Bay |
A
section of rack separated by the upright supports, usually two pallets
in width. |
| Reach Truck |
A
mechanical device used to transport pallet loads to or from storage. |
| Real-Time |
An
operating system responds to external event within a short and predictable
time frame |
| Receipt |
A
number assigned automatically by the system to a purchase order
receipt, when part or all of the order is received. |
| Receipt Detail |
Represents
a pallet of a single product that is being received. Receipts details
are produced by data entry (determined by TIxHI calculating the
number of pallets) or by RF receiving where pallets are entered
by the user. |
| Receiving |
One
of the basic operating functions of the food distribution center
where incoming merchandise is unloaded from trucks or rail cars
and checked for condition and completeness. |
| Reefer |
Refrigeration
equipment for transporting frozen or perishable products. |
| Reengineering |
A
redesign of business processes to achieve improvements in performance. |
| Re-packing |
The
action that goods are un-wrapped the packaging material then packed
again in a required way. |
| Replenishment |
The
moving of inventory from reserve storage to the active picking slots
below. |
| Replenishment
Level |
When
the number of units drops below this specified amount, the inventory
level is refilled. |
| Reserve Slot |
A
location where the product is stored until it is needed in selection
aisles. Reserve slots may contain one or multiple pallet loads,
as well as multiple items within them. |
| Retail Unit |
The
piece that is sold to a retail customer at the cash register. |
| |
Example: |
| |
Product:
12 oz. Cola cans |
| |
Case:
24 cans in a master case |
| |
Inner
Pack: 6 cans tied together with plastic (a six-pack) |
| |
Retail
Unit: A single can |
| |
In
this example, if the customer orders by six-packs, the shipping
unit would be set to 6. If the customer orders by the case, the
shipping unit would be set to 24. If the customer orders by the
retail unit, the shipping unit would be set to 1. Note: This is
only one example of the many different ways that a product can be
set up. A single product's shipping unit can be set differently
on different product details. |
| Retrieval System
(RS) |
A
system typically consists of high-rise shelving, multi-level conveyors,
and high-rise industrial truck equipment. |
| Reverse Logistics |
The
logistics focusing on movement and management of products after
sale and delivery to customer. |
| RF Unit |
A
radio frequency communications device that is mounted on a forklift,
carried, or worn on a selector. |
| Rush Order |
An
order that is called in by a store/customer in which the item(s)
are to be shipped the same day. |
| S (top) |
|
| Safety Stock |
A
stock reserve to protect against unexpected increases in product
movement and to prevent out-of-stocks. |
| Sales and Operations
Planning (S&OP) |
A
formal planning process used to determine the sales and operations
strategy that best meets all aspects of the enterprise's objectives.
The SOP process mediates sales, marketing, finance, operations and
logistics objectives to formulate a single, achievable plan for
the near-term - usually under one year. |
| Satellite Facility |
A
facility that is used to store merchandise which is not accommodated
in the base facility due to lack of space or equipment. |
| Scan Gun |
This
is used with an RF unit or terminal to scan (read) bar codes. |
| SCE (Supply Chain
Execution) |
A
subset of supply chain management, this is a framework of execution-oriented
applications that enables the efficient procurement and supply of
goods, services and information across enterprise boundaries to
meet customer-specific demand. In its broadest sense, SCE includes
the manufacturing execution system (MES), warehouse management system
and other execution systems within the enterprise, as well as throughout
the supply chain. The logistics-oriented elements of SCE include
the transportation management system, warehouse management system,
international trade systems (ITSs), real-time decision support systems
(e.g., dynamic routing and dynamic sourcing systems), and supply
chain inventory visibility systems. |
| SCIV (Supply
Chain Inventory Visibility) |
Applications
that allow enterprises to monitor and manage events across the supply
chain to plan their activities more effectively and pre-empt problems.
SCIV systems enable enterprises not only to track and trace inventory
globally on a line-item level, but also submit plans and receive
alerts when events deviate from expectations. This visibility into
orders and shipments on a real-time basis gives enterprises reliable
advance knowledge of when goods will arrive. |
| SCM (Supply Chain
Management) |
A
business strategy to improve shareholder and customer value by optimizing
the flow of products, services and related information from source
to customer. SCM encompasses the processes of creating and fulfilling
the market's demand for goods and services. It is a set of business
processes that encompasses a trading partner community engaged in
a common goal of satisfying the end customer. Thus, a supply chain
process can stretch from a supplier's supplier to a customer's customer.
Functionally, SCM encompasses both transactional execution systems
(e.g., enterprise resource planning, warehouse management system,
MES, transportation management system and ITS); planning; optimization
systems e.g., supply chain planning); and supply chain analytics
(e.g., data warehousing). |
| SCP (Supply Chain
Planning) |
A
subset of SCM, this is the process of coordinating assets to optimize
the delivery of goods, services and information from supplier to
customer, balancing supply and demand. An SCP suite sits on top
of a transactional system to provide planning, what-if scenario
analysis capabilities and real-time demand commitments. Typical
modules include network planning, capacity planning, demand planning,
manufacturing planning and scheduling, distribution and deployment
planning, and transportation planning and scheduling. |
| Scratch (Markout) |
When
the item ordered shows quantity on hand, but the selector is not
able to find the expected quantity. |
| Seal |
Small
metal or plastic strip and lead fastener used for locking totes,
freight car, or truck doors. Seals are numbered for record purposes. |
| Selection Line |
The
arrangement of warehouse inventory in an orderly system to facili-tate
selecting (picking) units to fill orders. |
| Service Level |
The
in-stock position of a warehouse expressed as the percentage of
retail orders that can be filled (99% is a good level of service). |
| Shipper |
The
party which tenders goods for transportation. |
| Shipping |
The
loading and delivery (usually on trucks) of orders from the grocery
distribution center to the retailer. |
| Shipping Unit/Shiping
Case |
Represents
the single unit that a warehouse selects for a store. The col-umn
in a table represents the number of retail units in a shipping unit.
The number of retail units in a shipping case must be evenly divisible
into the number of retail units in a case. If the two numbers are
equal, then the warehouse is receiving and shipping in master cases.
If the numbers are not equal, then the warehouse is re-packing (breaking
down) the master cases into smaller units before shipping. |
| Shipyard |
A
facility for building or repairing ships. |
| Shrink Wrap |
A
layer of plastic film encasing a palletized load of merchandise.
The film is subjected to heat, causing it to shrink and conform
to the shape of the load. |
| Shrinkage |
Inventory
or profit loss caused by faulty inventory counts, incorrect records,
checkout errors, spoilage, or pilferage. |
| Simulation Routines |
Various
routines using historical information to simulate future alternatives
for supply chain operations design. Usually strategically focused
for use in future operations, these may then be optimized and/or
prioritized. |
| SKU (Stockkeeping
Unit) |
A
multi-character item that must be stored and accounted for sepa-rately.
A single stockkeeping unit may have to be stored in different lots
for quality control or maintaining stock rotation. It may also be
necessary to split units between reserve storage and pick line when
the entire stock cannot be maintained in the selection area. |
| Slot (Location) |
The
position occupied by pallets or cases of products. There are two
types of slots: primary (select) and reserve (storage). |
| Slow Moving |
Goods
are stored in warehouse for relative long period without any moving
out. |
| Solution |
Imply
a product or service which will "meet the needs" and "solve the
problems" of the customer. |
| SOP (Standard
Operation Procedure) |
A
set of goods handling procedure which is set in accordance with
customer's instruction. |
| Sorting |
The
process of grouping products by grade (see also Grading). This may
refer to separating batch-picked merchandise for shipping to vari-ous
retail stores. |
| Spares/Service
Parts Planning (SPP) |
Planning
that supports the optimal stock quantities and location of items
used to service internal assets or customer equipment. |
| Split-Case (Broken-Case) |
Less
than a full case of merchandise. The picking method using individual
units that are selected. |
| Staging Area |
A
space on which the receiving and shipping docks used to gather and
check inbound and outbound loads. |
| Standard Pallet
Rack |
A
one-deep, self-style rack originally designed for pallets, but also
used for shelf storage of large units (usually one or two of a kind).
It consists of uprights and beams that may be fixed or adjustable.
Racks are secured to the floor, or rows are positioned back to back
and secured to each other. |
| Stock Variance |
|
| Storage and Replenishment |
A
basic operation of the grocery distribution center in which merchan-dise
is moved to assigned storage or reserve locations until needed to
replenish the selection line. |
| Straddle-Lift
Truck |
A
narrow-aisle lift truck. |
| Straight Load |
Merchandise
delivered to retail stores in trucks carrying only one product group,
or a whole trailer carrying different products for one customer. |
| Stretch Pallet
Wrap |
Bands
of plastic film applied by an associate used to encase palletized
loads prior to shipment. Depending on fragility or shape of the
mer-chandise, the number of bands can be varied to protect against
product damage. |
| Sub-Optimization |
Decisions
or activities in a part made at the expense of the whole. |
| Supplier (Vendor) |
Any
person or company who sells goods of any nature to a store. This
term can refer to a wholesaler, jobber, wholesale agent, or manufacturer. |
| Supply Warehouse |
A
warehouse that stores raw materials or components. |
| System Markout |
When
the host shows a quantity on hand for a product, but the inven-tory
system shows a quantity of zero, the item ordered is marked out
within the system. |
| T (top) |
|
| 3PL (Third Party
Logistics Service Provider) |
The
company provide Logistics related services that were previously
performed in-house by the client. |
| Tariff |
Refers
to transportation in reference to fees and rules applied by carrier
for its services. |
| Three-Level Slots
(Three-Level Pallet Racks) |
A
rack designed for items stored in less-than-full-pallet quantities,
or for pallets that do not require a full slot height. This rack
can also be used for handstacking items from partially filled pallets
into slot locations. |
| Throughput |
A
measure of warehousing output volume. |
| TI x HI |
The
number of cases on a single tier (layer), and the number of tiers
high on a pallet. |
| Tier (TI) |
A
single layer of units forming part of a unit load. |
| Time Sensitive |
Any
time delay of the product sold to market may lead its value decrease. |
| Time Study |
A
technique to develop standard time periods for performing various
tasks. |
| Time-Definite
Services |
Delivery
is guaranteed on a specific day or at a certain time of the day. |
| To Location |
A
code identifying the type of location and location ID to which the
product is currently being moved. |
| TOFC |
Trailer-on-flat
car (piggyback). |
| Tonnage |
The
displacement of a vessel in tons of water. |
| |
|
| Total Average
Inventory |
Average
normal use stock, plus average lead stock, plus safety stock. |
| Total Cost Analysis |
An
approach that considers total costs minimization and recognizes
interrelationship among system variables. |
| Total Quality
Management |
The
Juran total quality management trilogy is quality control, quality
planning, and quality projects. |
| Tote |
A
smooth, seamless, plastic or fiberglass container with a lid for
trans-porting small items (e.g., candy, HBA, and general merchandise)
from the distribution center to the retail store. It is a lightweight
container used to separate and protect high value items. |
| Tracking and
Tracing |
Monitoring
and recording shipment movements from origin to destination. |
| Traffic Management |
The
management and controlling of transportation modes, carriers and
services. |
| Transit Time |
The
total time that elapses between a shipment's pickup and delivery. |
| Transportation
Management |
System
used to plan freight movements, do freight rating and shopping across
all modes, select the appropriate route and carrier, and manage
freight bills and payments. |
| Transportation
Planning and Scheduling |
Specifies
how, when and where to transport goods. Transportation planning
and scheduling applications may provide weight/size restrictions,
merge-in-transit, continuous move, mode or carrier selection, and
less than truckload (LTL)/full truckload (FTL) planning functionality. |
| Transshipment |
The
transfer of cargo from one conveyance to another. |
| Truckload Carriers
(TL) |
Trucking
companies which move full truckloads of freight directly from point
of origin to destination. |
| Turnover (Turns) |
The
rate at which products must be restocked due to customer sales.
Turnover may also refer to the number of employees hired to replace
those who have left an establishment. |
| Turret Truck |
A
type of lift truck that is counterbalanced with a long wheel base
to stabilize it when heavy loads are lifted to high levels. It can
lift and rotate loads left or right, and move loads sideways for
storing and retrieving merchandise in pallet racks. |
| U (top) |
|
| Unicart |
A
means of handling a unit load from the selection aisles to the retail
store aisles. It moves on four wheels and has strong sides that
prevent product damage. Note: Using carts to ship merchandise lowers
the cube capacity of a trailer. Carts are normally off-loaded into
the trailer. |
| Unit Cost |
The
cost associated with a single unit of product. |
| Unloading |
The
action that goods are move out of the vehicle / container. |
| UOM (Unit Of
Measurement) |
A
pre-defined and mutually agreed unit of measurement. |
| UPC (Universal
Product Code) |
A
computer code identifying a product. An electronic scanner reads
the code and sends the information to a central computer. Also known
as bar code. |
| U-Pick Selection
(Perimeter, Horseshoe, or Quad Selection) |
A
selecting (picking) pattern in which selectors move up one side
of the aisle and down the other, returning to the point where the
selection cart or truck is placed. |
| User Acceptance
Testing |
User
performed test to determine a system for a specific task performs
according to specification. |
| Utilization Rate |
A
fleet productivity measurement that tracks % of time that vehicle
is being used. |
| V (top) |
|
| Value Added |
Increased
or improved value, worth, functionality or usefulness. |
| Variable Cost |
A
cost that fluctuates with the volume or activity level of business. |
| Variable-Measure
Trade Item |
An
item always produced in the same predefined version (e.g., type,
design and packaging) that may be sold at any point in the supply
chain. However, it may vary in weight and size by its nature, or
it may be traded without a predefined weight/size/length. |
| Visibility |
The
ability to access pertinent data as it relates to logistics and
supply chain. |
| VMI (Vendor-Managed
Inventory) |
In
the VMI process, the vendor assumes responsibility for managing
the replenishment of stock. Rather than a customer submitting orders,
the vendor will replenish stock as needed. This is sometimes referred
to as supplier-managed inventory (SMI) or co-managed inventory. |
| Volume |
The
rate of movement or flow of goods, services, money, or people. |
| W (top) |
|
| Warehouse |
A
physical facility in which the primary purpose is storage of merchandise. |
| Warehouse Point |
The
ID for a place in the warehouse. The first three characters are
the point's type; the last three digits identify the point. For
example, DOR003 identifies dock door number 3. Types of points are:
assign-ment, dock, door, haul, office, passage, P-N-D, stage, and
twilight zone. |
| WIP (Work-in-Process) |
Parts
and subassemblies in process of becoming finished goods. |
| WMS (Warehouse
Management System) |
A
software application that manages the operations of a warehouse
or distribution center. Application functionality includes receiving,
putaway, inventory management, cycle counting, task interleaving,
wave planning, order allocation, order picking, replenishment, packing,
shipping, labor management and automated material-handling equipment
interfaces. The use of radio frequency technology in conjunction
with bar codes provides the foundation of a WMS, delivering accurate
information in real time. |
| X (top) |
|
| (none) |
|
| Y (top) |
|
| (none) |
|
| Z (top) |
|
| Zero Latency |
A
goal of to keep moving goods or information in the supply chain
to provide near-real-time information management and reduce in-transit
inventory costs. |
| Zone Picking |
A
system in which the facility is divided into areas that are determined
by physical characteristics of the products, order types, or balancing
of volume. Order selectors pick only in their assigned zone and
move the merchandise to a staging area for assembly prior to loading
for ship-ment. |
| Z-Pick Selection
(Zigzag or Pivot Selection) |
A
selection pattern in which selectors pick back and forth on alternate
sides of the aisle. |
