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. CBU→SKD→CKD→IPO

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