References ranking method in descending order of shipments quantities. A class generally represents 80 % of the shipments (representing generally 20 % of the references), B class consists of 15 % of the shipments (representing generally 30 % of the references), C class consists of 5 % of the shipments (representing generally 50 % of the references). This method allows priorisation and can be applied to others fields as storage, supply, suppliers
See ABC Analysis.
It is the analysis of items through the classification in three different categories: A class refers to high value small volume; B class refers to medium value and medium volume and C class refers to low value and high volume.
The active inventory is composed by the real inventory minus the safety stock
Activity Based Costing — ABC
Costs analyze according to the activities and resources used in an organization. It identifies direct and indirect costs for each resource and assigns the cost of the activity to all products based on the consumption of resources for each activity.
Activity Based Management — ABM
Management based on Activity Based Costing
Advanced Planner and Optimizer — APO
Sales forecasts and Supply Planning module in SAP
Advanced Planning and Scheduling — APS
APS is a manufacturing management process which allocates raw materials and production capacity to fulfill demand for manufactured products. It is used in APS systems.
Advanced Planning System — APS
Planning system of all company’s flows (materials, information and financial) which synchronize and optimize activities and their interfaces in a global way according to customer service rate objectives and margins on activities.
Advanced Shipping Notice — ASN
It is an electronic message which informs about pending deliveries. It ams at providing the required information to prepare the receiving process.
Air waybill AWB
It is an evidence of the carriage contract made with an international courier company for goods transportation
Type of orders preparation in which all the goods of a same reference are taken then distributed between the various orders to satisfy through this preparation.
Investment management in SAP
Software product conceived to be supplied to several users with the aim of the same use.
It is a trailer which front part, devoid of wheels and engine, articulates itself on the rear part of a lorry.
It is an international customs document established in 1961 by the Brussels Agreement. It allows an exporter to import temporarily goods even in several successive countries, with no obligation to establish a customs declaration on each border (used for samples shipments, for trade fairs, expositions…).
Automatic Storage and Retrieve System AS
ASRS is an handling equipment allowing a three dimensional displacement of pallets: lifting, translation and arrangement in a rack.
Physical inventory minus non shipped customers orders and unavailable products (blocked for quality reasons… )
Available to Promise — ATP
ATP is an IT that provides information on items availability.It helps fulfill the orders and match demand with production plans.
Available to Sell — ATS
It is the quantity of goods committed to a customer location. It includes the current inventory at a location and the open purchase orders.
Customer order which cannot be satisfied now and for which the customer will wait.
Balance to Ship — BTS
It is the remaining quantity of an order line that is not shipped yet and will have to be fulfilled as a backorder.
Code constituted by a succession of lines and parallel spaces distributed according to a normalized configuration. It allows the automatic treatment of the information it represents.
A transportation mean used to transport goos on rivers, canals and inland waters.
Batch size Reduction
Manufacturing principle that focus on batch sizes reduction by eliminating the system constraints that obligate large batch sizes
Bill of Lading B/L
The Bill of Lading B/L is a shipping document. The B/L is subjected to the International Chamber of Commerce’s rules, which determines the mentions which have to appear according to the transportation mean used.
Bill Of Material — BOM
The Bill of Material is a hierarchical representation of the components and sub-components needed for a product manufacturing.
Bonded transport or warehousing
Transportation or warehousing operations realized without customs clearance
It is a closed railcar for freight transportation by train.
It is constituted by additional quantity of products in an inventory to meet unforeseen demand. It is a synonym of safety stock.
Build To Order
Build-to-order is a strategy where the manufacture of a product is triggered by a customer order. It is also referred to as Make-to-Order.
Floor stacking storage area.
Bunker Adjustment Factor — BAF
Adjustment to the freight cost either in positive, or negative. It depends on the oil price evolution.
Business Process Re-engineering BPR
Restructuring of all company processes to improve the service given to customers.
Process which consists in measuring the realized production and in comparing it with needs planned in capacity, in controlling the differences and in taking corrective actions.
Capacity Use Rate
Ratio current stock volume /available storing capacity
All the costs related to the keeping of an article in stock (financial, mark down, warehousing…). Also called holding cost.
Cash Against Document CAD
International payment mode.
Cash On Delivery COD
International payment mode.
Collaborative management between suppliers and retailers concerning products and additional services offers.
In the lean manufacturing definition, a cell or product cell, is a clearly identified entity and its assigned necessary resources that is able to control its own performance and satisfies customer requirements for its assigned products.
Center of gravity
Average of several points of various importance levels (volumes…) or centre of gravity.
Certificate of origin
It justifies the goods origin. It is validated by the Chambers of commerce. The certificate of origin is often required for importation, because of preferencial conditions applied on certain goods origin. The certificate of origin is often required in case of documentary credit.
Computer Integrated Management. Representation in pyramid of 4 IT decision levels. The higher the level is in the pyramid, the more it is important, the more the visibility is global and the more the standard cycles stretch out. A superior level decides what a lower level should execute. So, are concerned: at level 3: products and stocks management, supplies management, customers management, ordering and invoicing (managed by the ERP), at level 2: products location in stock, physical movements and lots management (managed by the WMS), at level 1: automatisms, at level 0: sensors and actuators.
Co-packing regroups various products into a same packaging. It is very uses in case of promotional operations.
Goods transportation by using several ways of transportation (ex: piggybacking is the combined transportation rail and road).
cf Spec Sheet
Phase of the project in which the customer and the supplier study the correspondence between what was ordered and what is effectively produced.
Storage location in shelves area
Tax on sea transportation for staying in overloaded harbours. Generally a fixed amount by TEU.
Gathering of the goods from several senders or at destination of several destinations, organizing and in execution of the constituted lot routing by a carrier.
Constraint Based Planning CBP
Planning method and techniques, with finished capacities or under constraints (of time, profitability objectives, capacities…) of the global operational activities at short term but also at the tactical and strategic levels of Supply Chain.
Constraint programming CP
Programming taking into account resources constraints : production, transport, warehousing…
Transport packaging with normalized dimensions.
Container Freight Station CFS
Place where containers are loaded or unloaded.
Loading of a maritime container
Offloading operation of a maritime container
Container on flat car-COFC
In the context of the intermodal transport, containers can be transported by sea, railway route or by lorries.
Container Yard CY
Place where are collected the empty containers and delivered the loaded containers.
Continuous replenishment program CRP
Program triggering the production and movement of a product in the supply chain as soon as an identical product is consumed by the final customer.
Contrôle du stock ABC
Méthode de contrôle du stock basée sur la classification ABC des articles.Voir la fiche technique Free Logistics sur les méthodes d’inventaire.
Cost of Goods Sold — COGS
On an income statement it represents the cost of obtaining raw materials and manufacturing finished products.
Cost of Goods Sold = Beginning Merchandise Inventory + Net Purchases of Merchandise — Ending Merchandise Inventory
Management principle in which multiple employees are trained to perform each production task, there by eliminating skills monopoly through polyvalence development.
Continuous Replenishment Program. Application of tense flow concept to CPFR.
Cruciform perimeter-base pallet
Perimeter-base pallet with 2 centre boards at right angles to each other.
Currency Adjustment Factor — CAF
Adjustment to the freight cost either in positive, or negative.It depends on the evolution of the currency in which is established the price list.
Regulations and procedures surrounding the entry of products into another country.
Customer Relationship Management CRM
Sales strategy for the customer loyalty development. It is based on the use of all customers and prospects data collected by the various department of the company (such as call centre, newsletter, payment cards, fidelity cards…). It allows propose to customers offers in correspondence with theirs expectations.
Stock physical inventory, done in scheduled intervals of time to correct discrepancies that affect the permanent inventory.
Inventory Management term corresponding to the amount of products in inventory during the time between replenishment and repletion.
Time included between the raw material arrival in production and the exit of the finished product
Data search mode in bases for analytic exploitation
Data storage for a future exploitation
Days Of Supply — DOS
This term is a ratio used in inventory management which corresponds to the number of days on hands inventory would last based on a forecasted demand for the product.
This refers in transportation vocabulary to the use of an empty transportation mean (truck, container…).
Decision Support System — DSS
This refers to an IT allowing managers to take decisions based on documented information (data, business processes,rules…).
Software product allowing modelizing the effects of a decision and allowing a user to estimate the consequences to help in his decision-taking process.
Measures the level of inventory accumulated between two interdependent operations as a buffer against breakdowns or unevenness in machine production rates.
Defective Goods Inventory — DGI
This part of inventory consits in goods delivered damaged and that are under an outstanding freight claim.
Product differentiation occurring at expedition. Allows having in stock generic items transformed at the latest moment possible (expedition) into specific items, and consequently allows stock reduction.
Delivery Note — DN
The delivery Note is a document used during the delivery of goods or service. It is remitted by the seller (or its carrier) to the buyer when the goods or service are delivered.
It describes the goods or service delivered, its quantity, the buyer’s contact details, the seller’s contact details, and the date and place of delivery. It is not generally valued.
Signed by the buyer, a copy is returned to the seller as a proof of delivery.
Type of production where products proceed to the next operation only when this one demands it.
The demurrage charges are billed by carriers when customers keeps their trailers and tractors for longer than agreed time periods.
Provision of stock by a supplier to his customer. Customer invoicing of the customer take place after stock consumption
Tax for delay in the container restitution.
Delivery In Full On Time
It measures the delivery performance in a supply chain. It measures how often the customer received what they want at the time they want it.
Delivery In Full On Time Accurately Invoiced It corresponds to the DIFOT requirements plus the invoice conformity.
Direct To Store — DTS
This consists in a delivery realized by a supplier directly to a store without transit through warehouses.
Difference between physical and IT stock .
All the activities related to products expedition from a producer to a customer.
Distribution by value
Cf ABC Analysis
Warehouse that objective is the distribution of products to the customers.
Global cost of all the activities of order management, inventory control, warehousing and transportation to the receiving point.
Distribution Ressource Planning DRP
Calculation method of quantities to be supplied at item level in order to avoid the shortages while limiting stock level. This method allows to dimension the necessary logistics and financial resources.
Banking technique that contributes to a total guarantee for the exporter to be paid for a sale and for the importer to receive the goods in conformity with the commercial contract. It is a commitment taken by the importer’s bank (or the buyer’s) at his demand and for him the bank pays a certain amount, determined by the commercial contract, to the exporter (or salesman) against sent goods representative documents.
Flat pallet with a top deck and a bottom deck.
Type of accumulation storing, adequate for LIFO management.
Type of stocking crossing for a management in FIFO
Supply mode via the e-commerce inter companies (B to B).
E-synchronized supply chain
Supply Chain Management in which the actors coordinate supply with information exchanges by Internet.
European Article Number 128. Normalized codification of logistics information of a packaging and its content.
Communication method based on EDIFACT standard.
Economic Order Quantity EOQ
Supply quantity optimized from an economical point of view.
Supply or production quantity optimized from an economical point of view.
Economic Value Added EVA
Economic value creation on an activity evaluation
Efficient Customer Response implies that all the functions involved in the Supply Management Chain give the resources necessary for joint operations development, by creating relationships of trust and by exchanging information on projected sales and customer needs, …”
International standard used for the Electronic data interchange ( EDI).
Efficient Consumer Response ECR
All processes aiming at optimizing the supply chain based on customer’s needs and consumptions.
Electronic Data Interchange
Standard which defines format and rules of the structure of computerized data.
Engineered to Order ETO
Production mode in which the design of whole or part of the product is followed upon the customer ordering.
Enterprise Application Integration –EAI
Tools and methods allowing to establish exchanges between different IT. THE EAI allows to translate data of a system to make them useful for an other system.
Enterprise Resource Planning ERP
Software Product which allows to manage all the company’s processes, by integrating all functions: human ressources, accounting, finance, sales, logistics… The various modules and functions using the same data base.
Cf Integrated Management Software
Estimated Time of Arrival ETA
Estimated Time of Arrival of the boat
Estimated Time of Departure ETD
Estimated Time of Departure of the boat.
Estimated Time of Sailing ETS
Estimated Time of departure of the boat.
European Article Numbering EAN
International standard for identification of the products and /or packaging by means of a bar code. (GS1)
Evaluated Receipts Settlement — ERS
Created by General Motors in 1994, this process aims to automate the goods receiving process. and therefore save time and money.
Executive Information Systems
Information and Analysis Systems allowing decisional data piloting and deciding, processing and exploiting.
It is a forecasting technique. This statistical method is used to estimate the demand for a product based on the historic data.
Export Processing Zone — EPZ
Or Free Trade Zones (FTZ)
It designates an area where some specific concessions exist for the processing and the export of goods. It aims to eliminate tariffs and provide tax breaks.
Whole composed of a company and its direct partners (customers, suppliers, subcontractors…) considered as an integrated whole having to function as a unique company.
Coefficient forecasting the future evolution of stock or activity value (generally 5 years range).
Finance management in SAP
Fifth Party Logistics 5PL
Subcontracted company for logistic organizations conception. It does not pilot, nor manage, neither execute logistic operations.
This KPI refers to the percentage of customer orders satisfied using the available inventory. It is measured in several ways, for example : based on Stock Keeping Unit (SKU), based on product family, based on number of order lines…
Finite Capacity Scheduling FCS
Scheduling taking into account constraints (capacities, leadtimes, outputs).
First Expired, First Out FEFO
Stock control rule allowing the management of products having an eat-by date.
First In First Out FIFO
Stock control rule where a product received first goes out first.
Generally used to indicate the physical progress of a product (in a warehouse, in transport), the term flow in logistics can also mean an exchange of paper information (administrative flow), an exchange of electronic information (information system) or a chain of activities (process flow or workflow).
It is a storage equipment employed in warehousing areas and stores. It facilitates order picking and makes the product more accessible for the order preparation operator.
Flowcasting is a recent approach of Supply Chain Management in the retail sector.
Forklift allowing loading and unloading operations and warehousing operation
Forty-Foot Equivalent Unit — FEU
It is a standard container used for ocean transportation. This container is 40’ in length.
Third party company appointed by the sender or the recipient of the goods which has to undergo several successive transports. Its mission is to organize the connection between the various carriers and to assure transport continuity.
Pallet permitting the entry of the fork arms of fork-lift trucks or palett trucks from all directions.
Fourth Party Logistics 4PL
Subcontracted company piloting and managing a logistic activity. It does not execute the logistics operations.
Pallet having entries through which the fork-arm wheels of a pallet truck can pass without leaving the ground.
It is the process of grouping multiple shipments and dispatching them on one single transportation equipment in order to reduce cost and improve service level. It occurs on shipments with similar points of origin and destination
Full Time Equivalent
Full Container Load FCL
System of international transportation a unique shipper load a container for a unique destination.
Chart of events presenting both duration and sequence
Global Location Number GLN
13-digit EAN.UCC code that identifies a physical, functional or legal entity.
Global Supply Chain
Refers to an international supply chain.
Global Supply Chain Management
Refers to the management of an international supply chain. With raw materials coming for different countries, production capacities for manufacturing goods in multiples countries and international customers.
Global Trade Item Number GTIN
14 digit EAN.UCC number used to identify products and services.
Good Receiver Note — GRN
It is the form used to support the process of goods receiving. It is generally the starting point for the accounts payable process.
GS1 (Gencod EAN)
Organization which communicates international standards of identification and communication (places and functions codification, bar code, radio frequency label, EDI messages).
Physical movement of the goods in the warehouse (stock, orders preparation, picking resupplying, expedition…)
Costs associated to the manipulation of the goods (loading, unloading, receiving, picking, shipment…).
Also called carrying cost .
Warehouse cross-docking oriented more than stocking.
International Air Transport Association
Forwarder specialized in transport by air
Allows the importation of a given quantity of goods during a defined period, especially needed for firearms, plants and animals, foods, medicines, textiles and chemicals. Whether you need a licence depends also on the origin of goods.
Regroups all logistic operations for flows arriving at the specified logistic entity.
Designates all logistics activities between suppliers and manufacturing plants.
Refers to the freight consolidation between suppliers and manufacturing facilities at a logistics terminal.
International norm for the definition of international commercial terms.
It refers to a transportation company specialized in transportation between a port and destination points over the land.
Packaging containing multiple SU and contained in an outer packaging.
cf Spec Sheet
cf Spec Sheet
International commercial terms Incoterms
International trade terms for the interpretation of commercial terms. It rules the respective obligations of the buyer and the salesman according to the nature of the contract concluded between they.
Manual and visual control allowing to know the quantity and location of goods in warehouse.
Measures used for the control of the efficiency of the inventory control methods.
Occurs when stock level is at zero.
Indicator of stock renewal for a given period (ratio of stock releases on the corresponding average physical stock).
Inventory turnover ratio
Cf Inventory Turnover
Accounting determined method for inventory evaluation : balanced average price, price of replacement, method FIFO, method LIFO, etc.
Inventory write-off consists in decreasing the stock economic value due to losses or by obsolescence.
Invitation To Tender ITT
Sub –contractants or suppliers consulting process aiming the identification of the one which fulfil the company requirements.
jointly managed inventory JMI
Collaborative inventory management between suppliers and distributors.
Just in time delivery
Delivery technique of the necessary quantity of goods, at the required place, at the right time.
Just-in time production – JIT
Production management system in tense flows using just-in-time concept.
Key Performance Indicator KPI
Measures that are deemed essential in monitoring the performance of a business e.g. service level, profitability.
Picking and grouping of elements constituting an article.
Vertical element of racks to which are fixed ribbands.
Last In, First Out LIFO
Storing rule in which take out in the ultimate product entered in stock go out of stock first.
Lead time between the order reception and its delivery.
Duration of a process, a flow …
Less than Container Load LCL
System of international transportation where various shippers pooled their goods in the same container.
Less than Truck Load LTL
Terminology especillay used in North America. It is a transportation service used if the customer doesn’t need a full trailer.
Letter of Intent — LOI
Aims to confirm to a logistic operator that he was selected during a consultation process for the realization of a customer’s logistic activity.
It allows, within the contractual negotiations, which duration seems to have to be long, to express in writing the will to negotiate and to look for an agreement on already agreed bases, even before knowing if it will be finally possible to conclude a contract.
Time period between new product launching and its sales withdrawal.
Lift on-lift off lo-lo
Vertical movement of a load for loading and offloading
Linear Programming LP
Programming technique used in optimization softwares
All operations allowing the delivery of the right product, at the right time, at the right location at the best cost.
Logistics protocol supplier client
A complement of the commercial contract established between a supplier and a client. It defines the rules from a logistics point of view, that have to be respected to insure the correct realization of the various processes (in terms of cost, quality and time).
Logistics Service Provider
Logistic company realizing logistic operations for one or several customers.
Make or Buy
Make-or-buy decision process aims at determining if a manufacturing company should make the product or item within the company or should the company purchase this product or item from an outside vendor.
Make To Order
Make-to-order is a strategy where the manufacture of a product is triggered by a customer order. It is also referred to as Build-to-Order.
Make To Stock
It refers to a manufacturing strategy where the manufacture of a product is realized on the basis of forecasted customer orders. As a result finished goods inventory is held by the company.
Manufacturing and Sales Plan
Its objective is to adapt resources (workforce and stocks level) to production needs in order to satisfy customer demand in terms of quantities. It is collectively drawn up by both the production control and the sales departments based on the order book and commercial forecasts. It is validated by top management.
Manufacturing Order MO
Firm order authorizing a manufacturing unit to produce a given quantity of products.
Manufacturing Resources Planning MRP II
Planning method of all company’s resources. It regroups many functions linked to each other : strategy, industrial and commercial planning, master production schedule, material requirement planning and execution follow-up.
The mark-down is the identification of the economic stock value reduction, we distinguish the known mark-down (breakage, identified theft…) of the unknown mark-down ( due to thefts, receiving errors, accounting, cash desk, consumption on the spot, …).
Allowance all around a pallet to facilitate and secure any handling or marshalling operation.
Master production schedule MPS
Its objective is to plan product needs to satisfy the customer demand. It also establishes a production due dates schedule to satisfy the manufacturing and sales plan.
Material Requirement Planning MRP
Techniques to calculate needs in components using bills of description, inventories state and production guiding program ).
Maximal weight authorized for a mean of transport.
Stock, supply and purchase management in SAP
Moving Average Price MAP
One of the inventory valorization rules where prices moving average is calculated taking into account the received quantities at a given price.
See Combined transportation.
A multimodal platform is served by many different means of transportation.
Difference between the requirements and the available stock + planed receiving (taking into account the buffer stock level).
Double-deck flat pallet with only one load-carrying surface.
Notchet stringer pallet
Pallet with stringers in each of which there are 2 notches.
Offload /Load of goods from a vehicle onto another one.
All the customers orders successful registered, but not yet delivered, or all the suppliers orders transmitted but not yet received
All the processes intended to run the manufacturing orders.
Lead time between the order emission and its reception.
Process of receiving orders from customers and placing them in the order processing information system.
Order Fulfilment Site
Site specified on the order as that where the deliveries must take place.
It is the time between 2 orders placement.
Submultiple of the customer order at reference level. An order of R references consists of R order lines.
Order Management System OMS
It is an Information System used to accomplish various activities and processes from the receiving of an order to the delivery of this order to the customer.
Process of grouping all goods composing an order for their expedition to the customer.
Order point — Reorder point
Under this stock level supply process is triggered.
Order Taking Site
Site where the orders are created.
Describes the logistics service level. The delivery was realized according the agreed period of time and no ordered products were missing. Example of OTIF ratio calculation : Number of deliveries OTIF /Total number of deliveries x 100 It can also be calculated per order lines.
Out Of Stock
It is a status in an inventory system which indicates the non-availability of a particular product or item demanded by the customer.It can lead to a backorder.
Regroups all logistic operations for flows going out of the specified logistic entity.
Designates all logistics activities between manufacturing plants and final customers
Refers to the freight consolidation between manufacturing facilities and final customers at a logistics terminal.
Packaging or parcel constituted by inner packagings or sale units.
Overall Equipment Efficiency OEE
The Overall equipment efficiency OEE is a Key Performance Indicator or KPI use to evaluate how effectively a manufacturing process is utilized. Basically, the OEE is a ratio which compares the Actual production with the theoretical maximum production capacity.
Pallet with stringer boards in both top and bottom deck.
cf Spec Sheet
Products classification considering flows, inventories,…
Coefficient measuring variations of stock or activity value compared to its average.
Achievement degree of established objectives.
Window pallet which has the outer bottom deck boards arranged as a complete frame with one or two centre boards.
Inventory done via a real-time stocks update system.
Planning evaluation and review technic used in projects management consisting in ordering chronologically a network of several inter-dependant tasks which all contribute the same objective achievement.
Set of activities concerned with efficient movement of finished goods from the end of the production operation to the consumer.
Phytosanitary Inspection Certificate
Certificate delivered by official agricultural authorities which assure that the imported vegetables or plants are free of parasites, infections, germs or toxic matters.
Pick and pack
Order picking technique according to which the prepared goods are directly arranged in their packagings.
Pick and Sort
Picking in which articles are sent to a sorting machine.
Pick then pack
Type of orders preparation in which the prepared articles are arranged in their packagings only at the end of the orders preparation process.
Pick to Belt
Order preparation in which complete boxes are placed on a conveyor which forwards them to the expedition zone.
Pick to clean
Allows prioritary run out of a pallet to prepare one single command line.
Pick to light
Lighting system assisting in order picking.
Action to take ordered articles to prepare one or several orders.
Used for the order picking, different according to picking physical levels height (on the ground, middle or high).
Combined transportation rail /road.
Point Of Delivery POD
Site specified on the order as that where the deliveries must take place.
It’s a japanese human-mistakes risk limitation method. Poka Yoke can be a process as well as a physical tool.
Operations of production carried out before shipment to the customer and given to logistics department: delayed differentiation, tests, assemblies, labelling…
Production management in SAP
Procurement lead time
Lead time between an order need identification and its satisfaction.
Proof Of Delivery POD
Proof Of Delivery
Opposite to push flow. The flow is pull when the quantity of every reference to produce is defined by the client needs.
Opposite to pull flow. The flow is pushed when are shipped on the customers market all the products ensued from production process.
One of the warehousing processes. It consists in storing the goods after realization of the receiving process.
Methods and means implemented to measure and maintain the quality of a product made in accordance with its specifications.
All the activities that intended to establish or to maintain the quality of the production, considering customers expectations and their evolution.
State of the goods which may not be manipulated before obtaining favorable results to one or several controls.
Quick Response QR
Strategy where supply chain members work together to respond more quickly to consumer demand. It means sharing data and developing production tools flexibility.
Set of shelves for pallets, consisted of several supporting beams and ribbands bounding storage locations
Opposite to Kaisen, it is a method of the company’s processes reorganization which purpose is the performance improvement.
Motorized and mobile crane equipped with a frontal lifting device allowing it to lift and to stack maritime containers.
One of the warehousing processes. It allows a client to guarantee the qualitative and quantitative conformity of the delivered goods.
Operation consisting in taking out quantities from reserved stock reserves to feed picking stocks.
Request for proposal RFP
Sub –contractants or suppliers consulting process aiming the identification of the one which fulfill the company requirements.
Request for Quote RFQ
Ask only economic quotation
Total demands (at item level) produced by sales forecasts.
Retail Managed Replenishment RMR
Stock management realized by the distributor.
Retail Ready Packaging RRP
Used when a product is delivered in a ready to sell unit. It is also allowing easy identification, easy opening, easy put onto shelves and shelf replenishment optimization
Retractible fork-lift truck
Fork-lift with mobile forks. This type of fork lift allows to use narrower service aisles.
All logistic operations aiming at the return of a product (customer towards supplier): products return, empty packagings return…
Double-deck flat pallet with similar top and bottom deck, either of which can take the same load..
Rough Cut Capacity Planning
Translation of the Production Plan and/or the Master Production Program in critical resources capacity needs: personal, machines, surfaces…
Level of stock allowing avoiding shortages in spite of the risks.
Coefficient measuring reproducible evolutions of stock or activity value for a given period (daily, weekly, monthly, yearly).
Sale unit SU
Elementary packaging of an article.
Function managing the logistic aspects of the customers relation: order taking, follow-up of the deliveries, invoicing.
Scheduled firm order
Forecasted production order. Can be defined in quantity and planning.
Production control technique. Its objective is to ensure production schedule realization on time and at minimal cost. It is characterized by the selection, the sequencing and the allocation of each operator to tasks to be realized on specific and individual work areas.
Invoicing mode in which no invoice are established by the supplier. The customer established itself the amount to pay in relation with goods or services states of reception.
Realization of successive simulations in order to know the parameter change effects on a result. It allows the description of the relative importance of certain parameters and the effects of not-proportionality.
In the warehouse, the service aisles paths allow the operators to reach storing and picking locations.
It is a coefficient applicable to the safety stock calculation (in case of demand responding to normal distribution). It has an exponential evolution.
Service rate indicator (for a warehouse, a transport…).
The owner of the transported goods.
Routing center for products with the aim of their expedition to the customers.
cf Spec Sheet
Single use pallet
Pallet intended to serve only once.
Flat pallet with only one deck.
SKD Semi Knockdown.
Supply method in the automotive field consisting in constituting sending an almost manufactured vehicle along with the remaining parts to assemble it.It’s an intermediary step between CBU and CKD. CBU→SKD→CKD→IPO
Solvers are software based on advanced mathematical techniques. They are used for optimizing logistics constraints.
SSCC (Serial Shipping Container Code)
SSCC (Serial Shipping Container Code), is a standard providing the unique identification of any logistics unity (bulk, container, pallet…).
Pallet intended to never leave the warehouse.
Fork-lift with strong arms allowing to stack loads.
Operation consisting in stacking pallets, packagings….
Statistical Process Control SPC
Production and supply management carrying out net requirements calculation with infinite capacity and capacities needs evaluation.
All raw materials, goods, stationery, half-finished products, finished products, packagings…which belong to a company at a given date.
KPI measuring the number of days of forecasted consumption which the current stock level can face.
Stock Keeping Unit — SKU
An item at necessary level for accurate stock control (example : a given item in a given location)
It is a status in an inventory system which indicates the non-availability of a particular product or item demanded by the customer.It can lead to a backorder.
Packaging of goods in the warehouse (pallet, cardboard or box, SU).
Mobile gantry on rubberized wheels which positions itself above a maritime container to lift it, move it or stack it.
Supply according to consumption
Stock management triggering supply order based on actual consumption reporting.
Physical and information flow from the purchase of raw materials until the delivery of finished products to the consumer. The supply chain includes all the suppliers, operators and the customers.
Supply chain event management SCEM
Management of the supply chain problems.
Supply Chain execution
Kind of software packages intended for the Supply Chain operational management: flows follow-up, warehouse management…
Supply chain management SCM
Physical and information flows management mode aiming at optimizing the ordering, the manufacturing and the delivery processes. From the supplier to the final customer.
Supply chain management system SCM
Software allowing the optimal management of all physical and information flows implied by a product manufacturing or a service offer, from the order information until the necessary data for distribution, including conception and production data.
Supply Chain Operations Reference Model
Supply Chain Modelization System
Supply Chain Planning
Global resources planning to satisfy the expressed or estimated demand.
Horizontal part of a rack which supports loads (pallets, products, etc.).
Average time between two unitary clients demands.
Oposite to stock flow. The flow is tense when a production can be directly distributed to the consumption market without constituting any stock.
Third Party Logistics 3PL
Subcontracted company in charge of an entire function of the supply chain for its customer. Example : subcontracted operation of a warehouse and its supply, of transportation,…
Total Cost of Ownership TCO
Complete cost related to product ownership, including all expenditures related.
Total Handling Charge — THC
Cost corresponding to handling services supplied during the operations of loading /unloading on harbours and airport terminals.
Total Productive Maintenance TPM
Strategy for creating employees responsible and autonomous maintenance of production equipment.
Total quality management TQM
Qualitative management of all the factors which can influence the quality of the performances of an organization. It uses performance measurement systems and continuous improvement.
Traceability is a process of identification allowing the customer to determine at any moment the background, application or location of components in a product or methods used during its manufacturing process. Applications of traceability are numerous : quality, delivery dates, eat-by dates, special hazard control, optimum stock management, compliance with regulations…
Goods localization : where is what ?
Separable rear part of a lorry
Trailer on flat car TOFC
It is a road trailer transported by rail on a flat car.
Handling device allowing to transport pallets horizontally.
Action to directly send goods from arrival docks to departure docks, without stock transit.
Twenty feet Equivalent Unit TEU
Container ISO 20′ unit
Simplified Kanban in which supply is done by replacement of packing when they are emptied.
Pallet permitting the entry of the fork arms of fork-lift trucks or palett trucks from two opposite directions only.
The value chain typically includes the different stages involved in product development in a field of business, ranging from the raw materials to the after-sales service.
Value Chain Analysis VCA
Method for identifying and quantifying Supply Chain costs reduction opportunities
Vendor Managed Inventory VMI
Management method of stock locations and levels based on the real customer consumptions of products. The management of the corresponding flows, from production sites up to the installation at the customer, is assured by the supplier.
Vendor Managed Replenishment VMR
Vendor Managed Replenishment. Replenishment managed by the supplier.
Audio system to pilot order picking
Place of reception, storing and of order pricking for the customers delivery.
Warehouse Control System WCS
Decision-making system which supports the activities supervision of a warehouse.
The warehouse management optimizes the physical flows inside the warehouse, respecting the service level defined. Warehouse management corresponds to CIM Pyramid N2 level. It answers the questions: “where” _“how” _“when” (short term)
Warehouse Management System WMS
Information system which manages the activity of one or several warehouses: preparation, follow-up and execution.
Activity or information flows that generate a cost which is not compensated by a benefit.
Preparation of various orders simultaneously
Width of the aisle
Distance between 2 storing areas.
Product subjected to the various stages of the manufacturing process, included between raw material and finished product.
Software allowing to manage a process to be realized by a certain number of people.
Measures the amount of stock available for the normal demand, excluding excess stock and safety stock.
Year To Date