Email your Logistics Guide

F.A.Q.

Q. What is the Supply Chain?

A. The supply chain, sometimes referred to as a logistics network, is a description of the processes, events and resources that are identified from the beginning of the chain at the supplier to the end of the chain at the customer. In some models of the supply chain this can be extended to include the supplier's supplier and the customer's customer.

Q. What is ERP?

A. ERP or Enterprise Resource Planning is a business software system that is based on a common database. The software covers the whole enterprise including business functions such as Supply Chain Management, Financials, Sales, Manufacturing, Human Resources and Transportation. Examples of ERP software includes SAP and Oracle.

Q. What is 3PL?

A. A 3PL or third-party logistics provider is a company that provides outsourced or third party logistics services. The 3PL company can provide transportation and warehousing services that can be customized to the specific needs of its clients.

Q. What is Six Sigma?

A. Six Sigma is a management strategy that can be used to identify and remove the causes of defects in a company's business and manufacturing processes. Software packages such as JMP, IBM Websphere Business Modeller and Minitab are available to support Six Sigma implementations.

Q. What is RFID?

A. Radio Frequency Identification (RFID) is a technology that uses radio frequency (RF) to transmit a signal from an antenna to a RFID tag or transponder. The tag is activated and then transmits data back to the antenna. The data that is sent back from the tag is used to trigger an event. RFID is used in inventory applications as tags can be read from several yards and beyond the line of sight of the RFID reader. Since 2005, Wal-Mart has required their top suppliers to use RFID on all shipments.

Q. What is SCOR?

A. Supply Chain Operations Reference (SCOR) is a supply chain model that was developed by the Supply Chain Council to measure total supply chain performance. The model begins at the supplier's supplier and concludes with the customer's customer. The model is based on three pilars; process modelling, performance measurements and best practices.

Q. What is Reverse Logistics?

A. Reverse logistics is a term that covers the actions taken to reuse items that have been delivered to the customer but that need to be returned to the manufacturer. The term covers all aspects of returns management, but also the logistics of items that are send back to the manufacturer from distributors as unsold.

Q. What is TQM?

A. TQM or Total Quality Management is an enterprise wide management of quality. The strategy has been used in management for over fifty years, but its use by NASA has made the concept more popular. TQM's aim is to bring quality to each operation in the enterprise by using a combination of technology and processes.

Q. What is the Product Life Cycle?

A. The product life cycle covers a number of stages that a product goes through. When a product is created it is in its Market Introduction stage where costs are high and companies have to stimulate demand. Next comes the Growth stage, where the product reaches profitability due to increased sales volume. Thirdly there is the Mature stage, where maximum sales are achieved, competition increases with prices and profits falling. Finally there is the Saturation stage where sales and profits decline.

Q. What is cGMP?

A. The term cGMP stands for "current Good Manufacturing Practice" and is used in the food, pharmaceutical, medical device industries. The term covers the regulations for the manufacture, processing, packing, and storage of items. GMP regulations cover issues including record keeping, sanitation, cleanliness, equipment verification, process validation, and complaint handling. In the USA the Food and Drug Administration (FDA) require companies to have current systems to comply with the regulation.