Supply Chain Glossary
This supply chain management glossary will provide a list of definitions for terms and phrases that are relevant when understanding some of the unfamiliar concepts in supply chain management.
Just In Time (JIT)
Just in Time or JIT method creates the movement of material into a specific location at the required time, i.e. just before the material is needed in the manufacturing process.
Just in Time or JIT method creates the movement of material into a specific location at the required time, i.e. just before the material is needed in the manufacturing process.
Kanban
Kanban is a Japanese production technique that uses cards or electronic signals in a computer system to monitor and control workflow in a factory.
Kanban is a Japanese production technique that uses cards or electronic signals in a computer system to monitor and control workflow in a factory.
Activity Based Costing (ABC)
Activity based costing is a methodology that measures the cost and performance of cost objects
Activity based costing is a methodology that measures the cost and performance of cost objects
Assemble to Order
Assemble to order is a production method that occurs when an item is assembled after receipt of a customer's order
Assemble to order is a production method that occurs when an item is assembled after receipt of a customer's order
Change Management
Change Management is the process that is used to help the company, employees and partners adapt successfully to the changes taking place.
Change Management is the process that is used to help the company, employees and partners adapt successfully to the changes taking place.
Continuous Replenishment
Continuous replenishment is based on the principal of pulled logistics.
Continuous replenishment is based on the principal of pulled logistics.
Cross Docking
Cross docking reduces costs by shipping material as it is received.
Cross docking reduces costs by shipping material as it is received.
Cycle Counting
Cycle counting is important procedure in the warehouse as it ensures inventory accuracy.
Cycle counting is important procedure in the warehouse as it ensures inventory accuracy.
Enterprise Resource Planning
Enterprise Resource Planning (ERP) software is used by companies to help them achieve efficiencies in their supply chain.
Enterprise Resource Planning (ERP) software is used by companies to help them achieve efficiencies in their supply chain.
Evaluated Receipts Settlement
Evaluated Receipts Settlement is a method of paying vendors without vendor generated invoices.
Evaluated Receipts Settlement is a method of paying vendors without vendor generated invoices.
Freight Forwarder
Freight forwarder is used by companies who need to ship items internationally.
Freight forwarder is used by companies who need to ship items internationally.
Last In, First Out (LIFO)
LIFO can be used in the warehouse where the first items moved out are the last to arrive in the warehouse
LIFO can be used in the warehouse where the first items moved out are the last to arrive in the warehouse
Maintenance, Repair, and Operating Supplies (MRO)
MRO items are consumed as part of the production and plant maintenance process.
MRO items are consumed as part of the production and plant maintenance process.
Public Warehouse
A public warehouse provides short or long-term storage to companies that require additional warehouse space.
A public warehouse provides short or long-term storage to companies that require additional warehouse space.
Radio Frequency (RF)
Radio frequency (RF) is a form of wireless communication used in warehousing.
Radio frequency (RF) is a form of wireless communication used in warehousing.
Radio Frequency Identification (RFID)
RFID uses RF technology and is hoped that the technology will improve the efficiency of inventory tracking and management.
RFID uses RF technology and is hoped that the technology will improve the efficiency of inventory tracking and management.
Six Sigma
Six Sigma is a business management strategy. It will identify and remove the causes of defects and errors in manufacturing and business processes.
Six Sigma is a business management strategy. It will identify and remove the causes of defects and errors in manufacturing and business processes.
Third Party Logistics Provider (3PL)
A Third Party Logistics (3PL) provider is a firm that provides outsourced or "third party" logistics.
A Third Party Logistics (3PL) provider is a firm that provides outsourced or "third party" logistics.
Vendor Managed Inventory (VMI)
Vendor Managed Inventory (VMI) is where the buyer of a product provides information to a vendor of that product and the vendor takes full responsibility for maintaining an agreed inventory of the material.
Vendor Managed Inventory (VMI) is where the buyer of a product provides information to a vendor of that product and the vendor takes full responsibility for maintaining an agreed inventory of the material.