Sup­ply Chain Por­tal — Κατάλογος Εταιρειών Εφοδιαστικής Αλυσίδας

Logis­tics, 3PL, Διανομές, Μεταφορές, Αποθήκευση, Εξοπλισμός, Υπηρεσίες

Λεξικό Logis­tics


ABC Analy­sis
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

ABC Clas­si­fi­ca­tion
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.


Active inven­tory
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

Allot­ment
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.

AM
Invest­ment man­age­ment in SAP

Appli­ca­tions pack­age
Soft­ware prod­uct con­ceived to be sup­plied to sev­eral users with the aim of the same use.

Artic­u­lated trailer
It is a trailer which front part, devoid of wheels and engine, artic­u­lates itself on the rear part of a lorry.

ATA car­net
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.

Avail­able Inven­tory
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 avail​abil​ity​.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.

Back­o­rder
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.

Bar code
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.

Barge
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

BB
Best Before

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

Box­car
It is a closed rail­car for freight trans­porta­tion by train.

Buffer stock
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.

Bulk stor­age
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.

Capac­ity con­trol
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

Car­ry­ing cost
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.

Cat­e­gory Man­age­ment
Col­lab­o­ra­tive man­age­ment between sup­pli­ers and retail­ers con­cern­ing prod­ucts and addi­tional ser­vices offers.

Cell
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.

CIM Pyra­mide
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
Co-​packing regroups var­i­ous prod­ucts into a same pack­ag­ing. It is very uses in case of pro­mo­tional oper­a­tions.

Com­bined trans­porta­tion
Goods trans­porta­tion by using sev­eral ways of trans­porta­tion (ex: pig­gy­back­ing is the com­bined trans­porta­tion rail and road).

Com­mer­cial Invoice
cf Spec Sheet

Com­mis­sion­ing
Phase of the project in which the cus­tomer and the sup­plier study the cor­re­spon­dence between what was ordered and what is effec­tively pro­duced.

Com­part­ment
Stor­age loca­tion in shelves area


Con­ges­tion sur­charge
Tax on sea trans­porta­tion for stay­ing in over­loaded har­bours. Gen­er­ally a fixed amount by TEU.

Con­sol­i­da­tion /​groupage
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…

Con­tainer
Trans­port pack­ag­ing with nor­mal­ized dimen­sions.


Con­tainer Freight Sta­tion CFS
Place where con­tain­ers are loaded or unloaded.

Con­tainer load
Load­ing of a mar­itime con­tainer

Con­tainer offload
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


Cross dock­ing
Cf Trans­ship­ment.


Cross Train­ing
Man­age­ment prin­ci­ple in which mul­ti­ple employ­ees are trained to per­form each pro­duc­tion task, there by elim­i­nat­ing skills monop­oly through poly­va­lence devel­op­ment.

CRP
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 neg​a​tive​.It depends on the evo­lu­tion of the cur­rency in which is estab­lished the price list.

Custom’s clear­ance
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.

Cycle count­ing
Stock phys­i­cal inven­tory, done in sched­uled inter­vals of time to cor­rect dis­crep­an­cies that affect the per­ma­nent inven­tory.


Cycle Inven­tory
Inven­tory Man­age­ment term cor­re­spond­ing to the amount of prod­ucts in inven­tory dur­ing the time between replen­ish­ment and reple­tion.

Cycle Time
Time included between the raw mate­r­ial arrival in pro­duc­tion and the exit of the fin­ished prod­uct

Data min­ing
Data search mode in bases for ana­lytic exploita­tion

Data ware­house
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.

Dead­head
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…).

Decision-​support pack­age
Soft­ware prod­uct allow­ing mod­eliz­ing the effects of a deci­sion and allow­ing a user to esti­mate the con­se­quences to help in his decision-​taking process.

Decou­pling stock
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.

Delayed Dif­fer­en­ci­a­tion
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.

Demand pull
Type of pro­duc­tion where prod­ucts pro­ceed to the next oper­a­tion only when this one demands it.

Demur­rage Charges
The demur­rage charges are billed by car­ri­ers when cus­tomers keeps their trail­ers and trac­tors for longer than agreed time peri­ods.

Deposit Con­sign­ment
Pro­vi­sion of stock by a sup­plier to his cus­tomer. Cus­tomer invoic­ing of the cus­tomer take place after stock con­sump­tion

Deten­tion
Tax for delay in the con­tainer resti­tu­tion.

DIFOT
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.

DIFO­TAI
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.

Dis­crep­ancy
Dif­fer­ence between phys­i­cal and IT stock .

Dis­tri­b­u­tion
All the activ­i­ties related to prod­ucts expe­di­tion from a pro­ducer to a cus­tomer.

Dis­tri­b­u­tion by value
Cf ABC Analy­sis

Dis­tri­b­u­tion cen­ter
Ware­house that objec­tive is the dis­tri­b­u­tion of prod­ucts to the cus­tomers.

Dis­tri­b­u­tion cost
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.

Doc­u­men­tary Credit
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.

Double-​deck pal­let
Flat pal­let with a top deck and a bot­tom deck.

Drive in
Type of accu­mu­la­tion stor­ing, ade­quate for LIFO man­age­ment.

Drive through
Type of stock­ing cross­ing for a man­age­ment in FIFO

e-​procurement
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.

EAN 128
Euro­pean Arti­cle Num­ber 128. Nor­mal­ized cod­i­fi­ca­tion of logis­tics infor­ma­tion of a pack­ag­ing and its con­tent.

EAN­COM
Com­mu­ni­ca­tion method based on EDI­FACT stan­dard.

Eco­nomic Order Quan­tity EOQ
Sup­ply quan­tity opti­mized from an eco­nom­i­cal point of view.

Eco­nomic quan­tity
Sup­ply or pro­duc­tion quan­tity opti­mized from an eco­nom­i­cal point of view.

Eco­nomic Value Added EVA
Eco­nomic value cre­ation on an activ­ity eval­u­a­tion

ECR
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, …”

EDI­FACT
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.

Expo­nen­tial Smooth­ing
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.

Extended com­pany
Whole com­posed of a com­pany and its direct part­ners (cus­tomers, sup­pli­ers, sub­con­trac­tors…) con­sid­ered as an inte­grated whole hav­ing to func­tion as a unique com­pany.

Extrap­o­la­tion coef­fi­cient
Coef­fi­cient fore­cast­ing the future evo­lu­tion of stock or activ­ity value (gen­er­ally 5 years range).

FI
Finance man­age­ment in SAP

Fifth Party Logis­tics 5PL
Sub­con­tracted com­pany for logis­tic orga­ni­za­tions con­cep­tion. It does not pilot, nor man­age, nei­ther exe­cute logis­tic oper­a­tions.

Fill Rate
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.

Flow
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).

Flow Rack
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
Flow­cast­ing is a recent approach of Sup­ply Chain Man­age­ment in the retail sec­tor.


Fork­lift truck
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.

For­ward­ing agent
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.


Four-​way pal­let
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.

Free-​entry pal­let
Pal­let hav­ing entries through which the fork-​arm wheels of a pal­let truck can pass with­out leav­ing the ground.

Freight Con­sol­i­da­tion
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

FTE
Full Time Equiv­a­lent

Full Con­tainer Load FCL
Sys­tem of inter­na­tional trans­porta­tion a unique ship­per load a con­tainer for a unique des­ti­na­tion.

Gantt Chart
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).

Han­dling
Phys­i­cal move­ment of the goods in the ware­house (stock, orders prepa­ra­tion, pick­ing resup­ply­ing, expe­di­tion…)

Han­dling costs
Costs asso­ci­ated to the manip­u­la­tion of the goods (load­ing, unload­ing, receiv­ing, pick­ing, ship­ment…).

Hold­ing cost
Also called car­ry­ing cost .



Hub
Ware­house cross-​docking ori­ented more than stock­ing.

IATA
Inter­na­tional Air Trans­port Asso­ci­a­tion

IATA Agent
For­warder spe­cial­ized in trans­port by air

Import licence
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.

Inbound
Regroups all logis­tic oper­a­tions for flows arriv­ing at the spec­i­fied logis­tic entity.

Inbound logis­tics
Des­ig­nates all logis­tics activ­i­ties between sup­pli­ers and man­u­fac­tur­ing plants.

Inbound pool­ing
Refers to the freight con­sol­i­da­tion between sup­pli­ers and man­u­fac­tur­ing facil­i­ties at a logis­tics ter­mi­nal.

Incoterm
Inter­na­tional norm for the def­i­n­i­tion of inter­na­tional com­mer­cial terms.


Inland car­rier
It refers to a trans­porta­tion com­pany spe­cial­ized in trans­porta­tion between a port and des­ti­na­tion points over the land.

Inner pack­ag­ing
Pack­ag­ing con­tain­ing mul­ti­ple SU and con­tained in an outer pack­ag­ing.

Inspec­tion Cer­tifi­cate
cf Spec Sheet

Insur­ance Cer­tifi­cate
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.

Inven­tory
Man­ual and visual con­trol allow­ing to know the quan­tity and loca­tion of goods in ware­house.


Inven­tory con­trol
Mea­sures used for the con­trol of the effi­ciency of the inven­tory con­trol meth­ods.

Inven­tory short­age
Occurs when stock level is at zero.

Inven­tory turnover
Indi­ca­tor of stock renewal for a given period (ratio of stock releases on the cor­re­spond­ing aver­age phys­i­cal stock).


Inven­tory turnover ratio
Cf Inven­tory Turnover

Inven­tory val­u­a­tion
Account­ing deter­mined method for inven­tory eval­u­a­tion : bal­anced aver­age price, price of replace­ment, method FIFO, method LIFO, etc.


Inven­tory write-​off
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.

Kit­ting
Pick­ing and group­ing of ele­ments con­sti­tut­ing an arti­cle.

Lad­der
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
Lead time between the order recep­tion and its deliv­ery.

Lead-​time
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.

Life cycle
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

Logis­tics
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.

Mark down
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, …).

Mar­shalling allowance
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 ).

Max­i­mum weight
Max­i­mal weight autho­rized for a mean of trans­port.

MM
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.

Mul­ti­modal trans­porta­tion
See Com­bined trans­porta­tion.

Mul­ti­modal­ity
A mul­ti­modal plat­form is served by many dif­fer­ent means of trans­porta­tion.

Net Require­ments
Dif­fer­ence between the require­ments and the avail­able stock + planed receiv­ing (tak­ing into account the buffer stock level).

Non-​reversible pal­let
Double-​deck flat pal­let with only one load-​carrying sur­face.

Notchet stringer pal­let
Pal­let with stringers in each of which there are 2 notches.

Offload­ing
Offload /​Load of goods from a vehi­cle onto another one.

Order Back­log
All the cus­tomers orders suc­cess­ful reg­is­tered, but not yet deliv­ered, or all the sup­pli­ers orders trans­mit­ted but not yet received

Order con­trol
All the processes intended to run the man­u­fac­tur­ing orders.

Order cycle
Lead time between the order emis­sion and its recep­tion.

Order Entry
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.

Order Inter­val
It is the time between 2 orders place­ment.

Order line
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.

Order pick­ing
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.

OTIF
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 cus​tomer​.It can lead to a back­o­rder.

Out­bound
Regroups all logis­tic oper­a­tions for flows going out of the spec­i­fied logis­tic entity.

Out­bound Logis­tics
Des­ig­nates all logis­tics activ­i­ties between man­u­fac­tur­ing plants and final cus­tomers

Out­bound pool­ing
Refers to the freight con­sol­i­da­tion between man­u­fac­tur­ing facil­i­ties and final cus­tomers at a logis­tics ter­mi­nal.

Outer pack­ag­ing
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.


Over­lap pal­let
Pal­let with stringer boards in both top and bot­tom deck.

Pack­ing List
cf Spec Sheet

Pareto
Prod­ucts clas­si­fi­ca­tion con­sid­er­ing flows, inven­to­ries,…

Peak coef­fi­cient
Coef­fi­cient mea­sur­ing vari­a­tions of stock or activ­ity value com­pared to its aver­age.

Per­for­mance yield
Achieve­ment degree of estab­lished objec­tives.

Perimeter-​base pal­let
Win­dow pal­let which has the outer bot­tom deck boards arranged as a com­plete frame with one or two cen­tre boards.

Per­pet­ual inven­tory
Inven­tory done via a real-​time stocks update sys­tem.

PERT Dia­gram
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.

Phys­i­cal dis­tri­b­u­tion
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.

Pick­ing
Action to take ordered arti­cles to pre­pare one or sev­eral orders.

Pick­ing Fork-​Lift
Used for the order pick­ing, dif­fer­ent accord­ing to pick­ing phys­i­cal lev­els height (on the ground, mid­dle or high).

Pig­gy­back traf­fic
Com­bined trans­porta­tion rail /​road.

Point Of Deliv­ery POD
Site spec­i­fied on the order as that where the deliv­er­ies must take place.

Poka Yoke
It’s a japan­ese human-​mistakes risk lim­i­ta­tion method. Poka Yoke can be a process as well as a phys­i­cal tool.

Post Man­u­fac­tur­ing
Oper­a­tions of pro­duc­tion car­ried out before ship­ment to the cus­tomer and given to logis­tics depart­ment: delayed dif­fer­en­ti­a­tion, tests, assem­blies, labelling…

PP
Pro­duc­tion man­age­ment in SAP

Pro­cure­ment lead time
Lead time between an order need iden­ti­fi­ca­tion and its sat­is­fac­tion.

Proof Of Deliv­ery POD
Proof Of Deliv­ery

Pull Flow
Oppo­site to push flow. The flow is pull when the quan­tity of every ref­er­ence to pro­duce is defined by the client needs.

Push Flow
Oppo­site to pull flow. The flow is pushed when are shipped on the cus­tomers mar­ket all the prod­ucts ensued from pro­duc­tion process.

Put-​away
One of the ware­hous­ing processes. It con­sists in stor­ing the goods after real­iza­tion of the receiv­ing process.


Qual­ity control-​QC
Meth­ods and means imple­mented to mea­sure and main­tain the qual­ity of a prod­uct made in accor­dance with its spec­i­fi­ca­tions.

Qual­ity man­age­ment
All the activ­i­ties that intended to estab­lish or to main­tain the qual­ity of the pro­duc­tion, con­sid­er­ing cus­tomers expec­ta­tions and their evo­lu­tion.

Quar­an­tine
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.

Rack
Set of shelves for pal­lets, con­sisted of sev­eral sup­port­ing beams and rib­bands bound­ing stor­age loca­tions


Re-​engineering
Oppo­site to Kaisen, it is a method of the company’s processes reor­ga­ni­za­tion which pur­pose is the per­for­mance improve­ment.

Reach Stacker
Motor­ized and mobile crane equipped with a frontal lift­ing device allow­ing it to lift and to stack mar­itime con­tain­ers.

Receiv­ing
One of the ware­hous­ing processes. It allows a client to guar­an­tee the qual­i­ta­tive and quan­ti­ta­tive con­for­mity of the deliv­ered goods.

Replen­ish­ment
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

Require­ments
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.

Reverse logis­tics
All logis­tic oper­a­tions aim­ing at the return of a prod­uct (cus­tomer towards sup­plier): prod­ucts return, empty pack­ag­ings return…

Reversible pal­let
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…

Safety Stock
Level of stock allow­ing avoid­ing short­ages in spite of the risks.

Saison­al­ity Coef­fi­cient
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.

Sales Admin­is­tra­tion
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.

Sched­ul­ing
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.


Self Billing
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.

Sen­si­tiv­ity analy­sis
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.

Ser­vice Aisle
In the ware­house, the ser­vice aisles paths allow the oper­a­tors to reach stor­ing and pick­ing loca­tions.

Ser­vice fac­tor
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
Ser­vice rate indi­ca­tor (for a ware­house, a trans­port…).

Ship­per
The owner of the trans­ported goods.

Ship­ping cen­ter
Rout­ing cen­ter for prod­ucts with the aim of their expe­di­tion to the cus­tomers.

Ship­ping doc­u­men­ta­tion
cf Spec Sheet

Sin­gle use pal­let
Pal­let intended to serve only once.

Single-​deck pal­let
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. CBUSKDCKDIPO

Solvers
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…).

Stack pal­let
Pal­let intended to never leave the ware­house.

Stacker
Fork-​lift with strong arms allow­ing to stack loads.

Stack­ing
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.

Stock
All raw mate­ri­als, goods, sta­tionery, half-​finished prod­ucts, fin­ished prod­ucts, packagings…which belong to a com­pany at a given date.

Stock cover
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)

Stock Out
It is a sta­tus in an inven­tory sys­tem which indi­cates the non-​availability of a par­tic­u­lar prod­uct or item demanded by the cus​tomer​.It can lead to a back­o­rder.

Stock unit
Pack­ag­ing of goods in the ware­house (pal­let, card­board or box, SU).

Strad­dle Car­rier
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.

Sup­ply chain
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.

Sup­port­ing beam
Hor­i­zon­tal part of a rack which sup­ports loads (pal­lets, prod­ucts, etc.).

Takt Time
Aver­age time between two uni­tary clients demands.

Tense Flow
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
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…

Track­ing
Goods local­iza­tion : where is what ?

Trailer
Sep­a­ra­ble rear part of a lorry

Trailer on flat car TOFC
It is a road trailer trans­ported by rail on a flat car.

Transpalette
Han­dling device allow­ing to trans­port pal­lets hor­i­zon­tally.

Trans­ship­ment
Action to directly send goods from arrival docks to depar­ture docks, with­out stock tran­sit.

Twenty feet Equiv­a­lent Unit TEU
Con­tainer ISO 20′ unit

Two-​bin sys­tem
Sim­pli­fied Kan­ban in which sup­ply is done by replace­ment of pack­ing when they are emp­tied.

Two-​way pal­let
Pal­let per­mit­ting the entry of the fork arms of fork-​lift trucks or palett trucks from two oppo­site direc­tions only.

Value Chain
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.

Voice Pick­ing
Audio sys­tem to pilot order pick­ing

Ware­house
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.

Ware­house man­age­ment
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.

Waste
Activ­ity or infor­ma­tion flows that gen­er­ate a cost which is not com­pen­sated by a ben­e­fit.

Wave
Prepa­ra­tion of var­i­ous orders simul­ta­ne­ously


Width of the aisle
Dis­tance between 2 stor­ing areas.

Work-​in-​process
Prod­uct sub­jected to the var­i­ous stages of the man­u­fac­tur­ing process, included between raw mate­r­ial and fin­ished prod­uct.

Work­flow
Soft­ware allow­ing to man­age a process to be real­ized by a cer­tain num­ber of peo­ple.

Work­ing stock
Mea­sures the amount of stock avail­able for the nor­mal demand, exclud­ing excess stock and safety stock.

YTD
Year To Date






ABC Analy­sis
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

ABC Clas­si­fi­ca­tion
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.


Active inven­tory
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

Allot­ment
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.

AM
Invest­ment man­age­ment in SAP

Appli­ca­tions pack­age
Soft­ware prod­uct con­ceived to be sup­plied to sev­eral users with the aim of the same use.

Artic­u­lated trailer
It is a trailer which front part, devoid of wheels and engine, artic­u­lates itself on the rear part of a lorry.

ATA car­net
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.

Avail­able Inven­tory
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 avail​abil​ity​.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.

Back­o­rder
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.

Bar code
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.

Barge
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

BB
Best Before

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

Box­car
It is a closed rail­car for freight trans­porta­tion by train.

Buffer stock
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.

Bulk stor­age
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.

Capac­ity con­trol
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

Car­ry­ing cost
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.

Cat­e­gory Man­age­ment
Col­lab­o­ra­tive man­age­ment between sup­pli­ers and retail­ers con­cern­ing prod­ucts and addi­tional ser­vices offers.

Cell
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.

CIM Pyra­mide
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
Co-​packing regroups var­i­ous prod­ucts into a same pack­ag­ing. It is very uses in case of pro­mo­tional oper­a­tions.

Com­bined trans­porta­tion
Goods trans­porta­tion by using sev­eral ways of trans­porta­tion (ex: pig­gy­back­ing is the com­bined trans­porta­tion rail and road).

Com­mer­cial Invoice
cf Spec Sheet

Com­mis­sion­ing
Phase of the project in which the cus­tomer and the sup­plier study the cor­re­spon­dence between what was ordered and what is effec­tively pro­duced.

Com­part­ment
Stor­age loca­tion in shelves area


Con­ges­tion sur­charge
Tax on sea trans­porta­tion for stay­ing in over­loaded har­bours. Gen­er­ally a fixed amount by TEU.

Con­sol­i­da­tion /​groupage
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…

Con­tainer
Trans­port pack­ag­ing with nor­mal­ized dimen­sions.


Con­tainer Freight Sta­tion CFS
Place where con­tain­ers are loaded or unloaded.

Con­tainer load
Load­ing of a mar­itime con­tainer

Con­tainer offload
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


Cross dock­ing
Cf Trans­ship­ment.


Cross Train­ing
Man­age­ment prin­ci­ple in which mul­ti­ple employ­ees are trained to per­form each pro­duc­tion task, there by elim­i­nat­ing skills monop­oly through poly­va­lence devel­op­ment.

CRP
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 neg​a​tive​.It depends on the evo­lu­tion of the cur­rency in which is estab­lished the price list.

Custom’s clear­ance
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.

Cycle count­ing
Stock phys­i­cal inven­tory, done in sched­uled inter­vals of time to cor­rect dis­crep­an­cies that affect the per­ma­nent inven­tory.


Cycle Inven­tory
Inven­tory Man­age­ment term cor­re­spond­ing to the amount of prod­ucts in inven­tory dur­ing the time between replen­ish­ment and reple­tion.

Cycle Time
Time included between the raw mate­r­ial arrival in pro­duc­tion and the exit of the fin­ished prod­uct

Data min­ing
Data search mode in bases for ana­lytic exploita­tion

Data ware­house
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.

Dead­head
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…).

Decision-​support pack­age
Soft­ware prod­uct allow­ing mod­eliz­ing the effects of a deci­sion and allow­ing a user to esti­mate the con­se­quences to help in his decision-​taking process.

Decou­pling stock
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.

Delayed Dif­fer­en­ci­a­tion
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.

Demand pull
Type of pro­duc­tion where prod­ucts pro­ceed to the next oper­a­tion only when this one demands it.

Demur­rage Charges
The demur­rage charges are billed by car­ri­ers when cus­tomers keeps their trail­ers and trac­tors for longer than agreed time peri­ods.

Deposit Con­sign­ment
Pro­vi­sion of stock by a sup­plier to his cus­tomer. Cus­tomer invoic­ing of the cus­tomer take place after stock con­sump­tion

Deten­tion
Tax for delay in the con­tainer resti­tu­tion.

DIFOT
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.

DIFO­TAI
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.

Dis­crep­ancy
Dif­fer­ence between phys­i­cal and IT stock .

Dis­tri­b­u­tion
All the activ­i­ties related to prod­ucts expe­di­tion from a pro­ducer to a cus­tomer.

Dis­tri­b­u­tion by value
Cf ABC Analy­sis

Dis­tri­b­u­tion cen­ter
Ware­house that objec­tive is the dis­tri­b­u­tion of prod­ucts to the cus­tomers.

Dis­tri­b­u­tion cost
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.

Doc­u­men­tary Credit
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.

Double-​deck pal­let
Flat pal­let with a top deck and a bot­tom deck.

Drive in
Type of accu­mu­la­tion stor­ing, ade­quate for LIFO man­age­ment.

Drive through
Type of stock­ing cross­ing for a man­age­ment in FIFO

e-​procurement
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.

EAN 128
Euro­pean Arti­cle Num­ber 128. Nor­mal­ized cod­i­fi­ca­tion of logis­tics infor­ma­tion of a pack­ag­ing and its con­tent.

EAN­COM
Com­mu­ni­ca­tion method based on EDI­FACT stan­dard.

Eco­nomic Order Quan­tity EOQ
Sup­ply quan­tity opti­mized from an eco­nom­i­cal point of view.

Eco­nomic quan­tity
Sup­ply or pro­duc­tion quan­tity opti­mized from an eco­nom­i­cal point of view.

Eco­nomic Value Added EVA
Eco­nomic value cre­ation on an activ­ity eval­u­a­tion

ECR
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, …”

EDI­FACT
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.

Expo­nen­tial Smooth­ing
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.

Extended com­pany
Whole com­posed of a com­pany and its direct part­ners (cus­tomers, sup­pli­ers, sub­con­trac­tors…) con­sid­ered as an inte­grated whole hav­ing to func­tion as a unique com­pany.

Extrap­o­la­tion coef­fi­cient
Coef­fi­cient fore­cast­ing the future evo­lu­tion of stock or activ­ity value (gen­er­ally 5 years range).

FI
Finance man­age­ment in SAP

Fifth Party Logis­tics 5PL
Sub­con­tracted com­pany for logis­tic orga­ni­za­tions con­cep­tion. It does not pilot, nor man­age, nei­ther exe­cute logis­tic oper­a­tions.

Fill Rate
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.

Flow
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).

Flow Rack
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
Flow­cast­ing is a recent approach of Sup­ply Chain Man­age­ment in the retail sec­tor.


Fork­lift truck
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.

For­ward­ing agent
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.


Four-​way pal­let
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.

Free-​entry pal­let
Pal­let hav­ing entries through which the fork-​arm wheels of a pal­let truck can pass with­out leav­ing the ground.

Freight Con­sol­i­da­tion
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

FTE
Full Time Equiv­a­lent

Full Con­tainer Load FCL
Sys­tem of inter­na­tional trans­porta­tion a unique ship­per load a con­tainer for a unique des­ti­na­tion.

Gantt Chart
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).

Han­dling
Phys­i­cal move­ment of the goods in the ware­house (stock, orders prepa­ra­tion, pick­ing resup­ply­ing, expe­di­tion…)

Han­dling costs
Costs asso­ci­ated to the manip­u­la­tion of the goods (load­ing, unload­ing, receiv­ing, pick­ing, ship­ment…).

Hold­ing cost
Also called car­ry­ing cost .



Hub
Ware­house cross-​docking ori­ented more than stock­ing.

IATA
Inter­na­tional Air Trans­port Asso­ci­a­tion

IATA Agent
For­warder spe­cial­ized in trans­port by air

Import licence
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.

Inbound
Regroups all logis­tic oper­a­tions for flows arriv­ing at the spec­i­fied logis­tic entity.

Inbound logis­tics
Des­ig­nates all logis­tics activ­i­ties between sup­pli­ers and man­u­fac­tur­ing plants.

Inbound pool­ing
Refers to the freight con­sol­i­da­tion between sup­pli­ers and man­u­fac­tur­ing facil­i­ties at a logis­tics ter­mi­nal.

Incoterm
Inter­na­tional norm for the def­i­n­i­tion of inter­na­tional com­mer­cial terms.


Inland car­rier
It refers to a trans­porta­tion com­pany spe­cial­ized in trans­porta­tion between a port and des­ti­na­tion points over the land.

Inner pack­ag­ing
Pack­ag­ing con­tain­ing mul­ti­ple SU and con­tained in an outer pack­ag­ing.

Inspec­tion Cer­tifi­cate
cf Spec Sheet

Insur­ance Cer­tifi­cate
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.

Inven­tory
Man­ual and visual con­trol allow­ing to know the quan­tity and loca­tion of goods in ware­house.


Inven­tory con­trol
Mea­sures used for the con­trol of the effi­ciency of the inven­tory con­trol meth­ods.

Inven­tory short­age
Occurs when stock level is at zero.

Inven­tory turnover
Indi­ca­tor of stock renewal for a given period (ratio of stock releases on the cor­re­spond­ing aver­age phys­i­cal stock).


Inven­tory turnover ratio
Cf Inven­tory Turnover

Inven­tory val­u­a­tion
Account­ing deter­mined method for inven­tory eval­u­a­tion : bal­anced aver­age price, price of replace­ment, method FIFO, method LIFO, etc.


Inven­tory write-​off
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.

Kit­ting
Pick­ing and group­ing of ele­ments con­sti­tut­ing an arti­cle.

Lad­der
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
Lead time between the order recep­tion and its deliv­ery.

Lead-​time
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.

Life cycle
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

Logis­tics
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.

Mark down
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, …).

Mar­shalling allowance
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 ).

Max­i­mum weight
Max­i­mal weight autho­rized for a mean of trans­port.

MM
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.

Mul­ti­modal trans­porta­tion
See Com­bined trans­porta­tion.

Mul­ti­modal­ity
A mul­ti­modal plat­form is served by many dif­fer­ent means of trans­porta­tion.

Net Require­ments
Dif­fer­ence between the require­ments and the avail­able stock + planed receiv­ing (tak­ing into account the buffer stock level).

Non-​reversible pal­let
Double-​deck flat pal­let with only one load-​carrying sur­face.

Notchet stringer pal­let
Pal­let with stringers in each of which there are 2 notches.

Offload­ing
Offload /​Load of goods from a vehi­cle onto another one.

Order Back­log
All the cus­tomers orders suc­cess­ful reg­is­tered, but not yet deliv­ered, or all the sup­pli­ers orders trans­mit­ted but not yet received

Order con­trol
All the processes intended to run the man­u­fac­tur­ing orders.

Order cycle
Lead time between the order emis­sion and its recep­tion.

Order Entry
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.

Order Inter­val
It is the time between 2 orders place­ment.

Order line
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.

Order pick­ing
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.

OTIF
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 cus​tomer​.It can lead to a back­o­rder.

Out­bound
Regroups all logis­tic oper­a­tions for flows going out of the spec­i­fied logis­tic entity.

Out­bound Logis­tics
Des­ig­nates all logis­tics activ­i­ties between man­u­fac­tur­ing plants and final cus­tomers

Out­bound pool­ing
Refers to the freight con­sol­i­da­tion between man­u­fac­tur­ing facil­i­ties and final cus­tomers at a logis­tics ter­mi­nal.

Outer pack­ag­ing
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.


Over­lap pal­let
Pal­let with stringer boards in both top and bot­tom deck.

Pack­ing List
cf Spec Sheet

Pareto
Prod­ucts clas­si­fi­ca­tion con­sid­er­ing flows, inven­to­ries,…

Peak coef­fi­cient
Coef­fi­cient mea­sur­ing vari­a­tions of stock or activ­ity value com­pared to its aver­age.

Per­for­mance yield
Achieve­ment degree of estab­lished objec­tives.

Perimeter-​base pal­let
Win­dow pal­let which has the outer bot­tom deck boards arranged as a com­plete frame with one or two cen­tre boards.

Per­pet­ual inven­tory
Inven­tory done via a real-​time stocks update sys­tem.

PERT Dia­gram
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.

Phys­i­cal dis­tri­b­u­tion
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.

Pick­ing
Action to take ordered arti­cles to pre­pare one or sev­eral orders.

Pick­ing Fork-​Lift
Used for the order pick­ing, dif­fer­ent accord­ing to pick­ing phys­i­cal lev­els height (on the ground, mid­dle or high).

Pig­gy­back traf­fic
Com­bined trans­porta­tion rail /​road.

Point Of Deliv­ery POD
Site spec­i­fied on the order as that where the deliv­er­ies must take place.

Poka Yoke
It’s a japan­ese human-​mistakes risk lim­i­ta­tion method. Poka Yoke can be a process as well as a phys­i­cal tool.

Post Man­u­fac­tur­ing
Oper­a­tions of pro­duc­tion car­ried out before ship­ment to the cus­tomer and given to logis­tics depart­ment: delayed dif­fer­en­ti­a­tion, tests, assem­blies, labelling…

PP
Pro­duc­tion man­age­ment in SAP

Pro­cure­ment lead time
Lead time between an order need iden­ti­fi­ca­tion and its sat­is­fac­tion.

Proof Of Deliv­ery POD
Proof Of Deliv­ery

Pull Flow
Oppo­site to push flow. The flow is pull when the quan­tity of every ref­er­ence to pro­duce is defined by the client needs.

Push Flow
Oppo­site to pull flow. The flow is pushed when are shipped on the cus­tomers mar­ket all the prod­ucts ensued from pro­duc­tion process.

Put-​away
One of the ware­hous­ing processes. It con­sists in stor­ing the goods after real­iza­tion of the receiv­ing process.


Qual­ity control-​QC
Meth­ods and means imple­mented to mea­sure and main­tain the qual­ity of a prod­uct made in accor­dance with its spec­i­fi­ca­tions.

Qual­ity man­age­ment
All the activ­i­ties that intended to estab­lish or to main­tain the qual­ity of the pro­duc­tion, con­sid­er­ing cus­tomers expec­ta­tions and their evo­lu­tion.

Quar­an­tine
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.

Rack
Set of shelves for pal­lets, con­sisted of sev­eral sup­port­ing beams and rib­bands bound­ing stor­age loca­tions


Re-​engineering
Oppo­site to Kaisen, it is a method of the company’s processes reor­ga­ni­za­tion which pur­pose is the per­for­mance improve­ment.

Reach Stacker
Motor­ized and mobile crane equipped with a frontal lift­ing device allow­ing it to lift and to stack mar­itime con­tain­ers.

Receiv­ing
One of the ware­hous­ing processes. It allows a client to guar­an­tee the qual­i­ta­tive and quan­ti­ta­tive con­for­mity of the deliv­ered goods.

Replen­ish­ment
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

Require­ments
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.

Reverse logis­tics
All logis­tic oper­a­tions aim­ing at the return of a prod­uct (cus­tomer towards sup­plier): prod­ucts return, empty pack­ag­ings return…

Reversible pal­let
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…

Safety Stock
Level of stock allow­ing avoid­ing short­ages in spite of the risks.

Saison­al­ity Coef­fi­cient
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.

Sales Admin­is­tra­tion
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.

Sched­ul­ing
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.


Self Billing
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.

Sen­si­tiv­ity analy­sis
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.

Ser­vice Aisle
In the ware­house, the ser­vice aisles paths allow the oper­a­tors to reach stor­ing and pick­ing loca­tions.

Ser­vice fac­tor
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
Ser­vice rate indi­ca­tor (for a ware­house, a trans­port…).

Ship­per
The owner of the trans­ported goods.

Ship­ping cen­ter
Rout­ing cen­ter for prod­ucts with the aim of their expe­di­tion to the cus­tomers.

Ship­ping doc­u­men­ta­tion
cf Spec Sheet

Sin­gle use pal­let
Pal­let intended to serve only once.

Single-​deck pal­let
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. CBUSKDCKDIPO

Solvers
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…).

Stack pal­let
Pal­let intended to never leave the ware­house.

Stacker
Fork-​lift with strong arms allow­ing to stack loads.

Stack­ing
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.

Stock
All raw mate­ri­als, goods, sta­tionery, half-​finished prod­ucts, fin­ished prod­ucts, packagings…which belong to a com­pany at a given date.

Stock cover
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)

Stock Out
It is a sta­tus in an inven­tory sys­tem which indi­cates the non-​availability of a par­tic­u­lar prod­uct or item demanded by the cus​tomer​.It can lead to a back­o­rder.

Stock unit
Pack­ag­ing of goods in the ware­house (pal­let, card­board or box, SU).

Strad­dle Car­rier
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.

Sup­ply chain
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.

Sup­port­ing beam
Hor­i­zon­tal part of a rack which sup­ports loads (pal­lets, prod­ucts, etc.).

Takt Time
Aver­age time between two uni­tary clients demands.

Tense Flow
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
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…

Track­ing
Goods local­iza­tion : where is what ?

Trailer
Sep­a­ra­ble rear part of a lorry

Trailer on flat car TOFC
It is a road trailer trans­ported by rail on a flat car.

Transpalette
Han­dling device allow­ing to trans­port pal­lets hor­i­zon­tally.

Trans­ship­ment
Action to directly send goods from arrival docks to depar­ture docks, with­out stock tran­sit.

Twenty feet Equiv­a­lent Unit TEU
Con­tainer ISO 20′ unit

Two-​bin sys­tem
Sim­pli­fied Kan­ban in which sup­ply is done by replace­ment of pack­ing when they are emp­tied.

Two-​way pal­let
Pal­let per­mit­ting the entry of the fork arms of fork-​lift trucks or palett trucks from two oppo­site direc­tions only.

Value Chain
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.

Voice Pick­ing
Audio sys­tem to pilot order pick­ing

Ware­house
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.

Ware­house man­age­ment
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.

Waste
Activ­ity or infor­ma­tion flows that gen­er­ate a cost which is not com­pen­sated by a ben­e­fit.

Wave
Prepa­ra­tion of var­i­ous orders simul­ta­ne­ously


Width of the aisle
Dis­tance between 2 stor­ing areas.

Work-​in-​process
Prod­uct sub­jected to the var­i­ous stages of the man­u­fac­tur­ing process, included between raw mate­r­ial and fin­ished prod­uct.

Work­flow
Soft­ware allow­ing to man­age a process to be real­ized by a cer­tain num­ber of peo­ple.

Work­ing stock
Mea­sures the amount of stock avail­able for the nor­mal demand, exclud­ing excess stock and safety stock.

YTD
Year To Date




We use cookies to improve our website and your experience when using it. Cookies used for the essential operation of the site have already been set. To find out more about the cookies we use and how to delete them, see our privacy policy.

I accept cookies from this site.

EU Cookie Directive Module Information