SUPPLY CHAIN VISION LOGISTICS TERMS and GLOSSARY Updated October 2003 Channel: 1)A method whereby a business dispenses its product, such as a retail or distribution subscribe to a website to browse offline, automatically display updated gy that allows users to channel, call center or web based electronic storefront. 2 )A push technol pages on their screen savers,and download or receive notifications whe n pages in the website are modified. Channels are available only in browsers that support channel definitions, such as Microsoft Internet Explorer version 4.0 Channel Conflict: This occurs when various sales channels within a company's supply chain compete with each other for the same business. An example is where a retail channel is in competition with a web based channel set up by the company Channel Partners: Members of a supply chain (i.e. suppliers, manufacturers, distributors, retailers, etc. )who work in conjunction with one another to manufacture, distribute, and sell a specific product Channels of Distribution: Any series of firms or individuals that participates in the flow of goods and services from the raw material supplier and producer t the final user or consumer Also see: Distribution Channel Cl: See Continuous Improvement CIF: Abbreviation for cost. insurance. freight Clearinghouse: A conventional or limited purpose entity generally restricted to providing specialized services, such as clearing funds or settling accounts Click-and-Mortar: With reference to a traditional brick-and-mortar company that has expanded its presence online. Many brick-and-mortar stores are now trying to establish an online presence but often have a difficult time doing so for many reasons. Click-and-mortar is"the successful combination of online and real world experience Clip Art: A collection of icons, buttons, and other useful image files, along with sound and video files that can be inserted into documents/web pages Clipboard: a temporary storage area on a computer for cut or copied items CLM: See Council of logistics Management Definitions compiled by Kate vitasek Bellevue. Washington Please note: The Council of Logistics Management does not take responsibility for the content of these definitions, nor does the Council endorse these as official definitions except as noted
SUPPLY CHAIN VISIONS LOGISTICS TERMS and GLOSSARY Updated October 2003 Definitions compiled by: Kate Vitasek Supply Chain Visions Bellevue, Washington Please note: The Council of Logistics Management does not take responsibility for the content of these definitions, nor does the Council endorse these as official definitions except as noted. Channel: 1) A method whereby a business dispenses its product, such as a retail or distribution channel, call center or web based electronic storefront. 2) A push technology that allows users to subscribe to a website to browse offline, automatically display updated pages on their screen savers, and download or receive notifications when pages in the website are modified. Channels are available only in browsers that support channel definitions, such as Microsoft Internet Explorer version 4.0 Channel Conflict: This occurs when various sales channels within a company's supply chain compete with each other for the same business. An example is where a retail channel is in competition with a web based channel set up by the company. Channel Partners: Members of a supply chain (i.e. suppliers, manufacturers, distributors, retailers, etc.) who work in conjunction with one another to manufacture, distribute, and sell a specific product. Channels of Distribution: Any series of firms or individuals that participates in the flow of goods and services from the raw material supplier and producer to the final user or consumer. Also see: Distribution Channel CI: See Continuous Improvement CIF: Abbreviation for cost, insurance, freight. Clearinghouse: A conventional or limited purpose entity generally restricted to providing specialized services, such as clearing funds or settling accounts. Click-and-Mortar: With reference to a traditional brick-and-mortar company that has expanded its presence online. Many brick-and-mortar stores are now trying to establish an online presence but often have a difficult time doing so for many reasons. Click-and-mortar is "the successful combination of online and real world experience." Clip Art: A collection of icons, buttons, and other useful image files, along with sound and video files that can be inserted into documents/web pages. Clipboard: A temporary storage area on a computer for cut or copied items. CLM: See Council of Logistics Management
SUPPLY CHAIN VISION LOGISTICS TERMS and GLOSSARY Updated October 2 Closed-loop MRP: A system built around material requirements planning that includes the additional planning processes of production planning(sales and operations planning), master production scheduling, and capacity requirements planning. Once this planning phase is complete and the plans have been accepted as realistic and attainable, the execution processes come into play. These processes include the manufacturing control processes of input-output ( capacity)measurement, detailed scheduling and dispatching, as well as anticipated delay reports from both the plant and suppliers, supplier scheduling, and so on. The term closed loop implies not only that each of these processes is included in the overall system, but also that feedback is provided by the execution processes so that the planning can be kept valid at all times CMI: See Co-managed Inventor COA: See Certificate of analysis Co-destiny: The evolution of a supply chain from intra-organizational management to inter- organizational management Co-packer: A contract co-packer produces goods and/or services for other companies, usually under the other company's label or name. Co-Packers are more frequently seen in CPG and OOaS Co-Managed Inventory(CMD): A form of continuous replenishment in which the manufacturer is responsible for replenishment of standard merchandise, while the retailer manages the replenishment of promotional merchandise Code: A numeric, or alphanumeric, representation of text for exchanging commonly used information. For example: commodity codes, carrier codes Codifying: The process of detailing a new standard COGS: See Cost of Goods Sold Collaborative Planning, Forecasting and Replenishment(CPFR): 1)A collaboration process whereby supply chain trading partners can jointly plan key supply chain activities from production and delivery of raw materials to production and delivery of final products to end customers. Collaboration encompasses business planning, sales forecasting, and all operations required to replenish raw materials and finished goods. 2)A process philosophy for facilitating collaborative communications. CPFR is considered a standard, endorsed by the voluntary Inter ndustry Commerce Standard Definitions compiled by Kate vitasek Bellevue. Washington Please note: The Council of Logistics Management does not take responsibility for the content of these definitions, nor does the Council endorse these as official definitions except as noted
SUPPLY CHAIN VISIONS LOGISTICS TERMS and GLOSSARY Updated October 2003 Definitions compiled by: Kate Vitasek Supply Chain Visions Bellevue, Washington Please note: The Council of Logistics Management does not take responsibility for the content of these definitions, nor does the Council endorse these as official definitions except as noted. Closed-loop MRP: A system built around material requirements planning that includes the additional planning processes of production planning (sales and operations planning), master production scheduling, and capacity requirements planning. Once this planning phase is complete and the plans have been accepted as realistic and attainable, the execution processes come into play. These processes include the manufacturing control processes of input-output (capacity) measurement, detailed scheduling and dispatching, as well as anticipated delay reports from both the plant and suppliers, supplier scheduling, and so on. The term closed loop implies not only that each of these processes is included in the overall system, but also that feedback is provided by the execution processes so that the planning can be kept valid at all times. CMI: See Co-managed Inventory COA: See Certificate of Analysis Co-destiny: The evolution of a supply chain from intra-organizational management to interorganizational management. Co-packer: A contract co-packer produces goods and/or services for other companies, usually under the other company's label or name. Co-Packers are more frequently seen in CPG and Foods. Co-Managed Inventory (CMI): A form of continuous replenishment in which the manufacturer is responsible for replenishment of standard merchandise, while the retailer manages the replenishment of promotional merchandise. Code: A numeric, or alphanumeric, representation of text for exchanging commonly used information. For example: commodity codes, carrier codes, Codifying: The process of detailing a new standard. COGS: See Cost of Goods Sold Collaborative Planning, Forecasting and Replenishment (CPFR): 1) A collaboration process whereby supply chain trading partners can jointly plan key supply chain activities from production and delivery of raw materials to production and delivery of final products to end customers. Collaboration encompasses business planning, sales forecasting, and all operations required to replenish raw materials and finished goods. 2) A process philosophy for facilitating collaborative communications. CPFR is considered a standard, endorsed by the Voluntary Interindustry Commerce Standards
SUPPLY CHAIN VISION LOGISTICS TERMS and GLOSSARY Updated October 2003 Combined Lead Time: See Cumulative Lead Time Commercial Invoice: The commercial invoice is a legal document between the supplier and the customer that clearly describes the sold goods, and the amount due on the customer. The commercial invoice is one of the main documents used by customs in determing customs duties It is also the primary document used for billing and accounts receivable Committed Capability: The portion of the production capability that is currently in use, or is scheduled for use Commodity: An item that is traded in commerce. The term usually implies an undifferentiated product competing primarily on price and availability Commodity Buying: Grouping like parts or materials under one buyers control for the procurement of all requirements to support production Commodity Procurement Strategy: The purchasing plan for a family of items. This would nclude the plan to manage the supplier base and solve problems Common Carrier: Transportation available to the public that does not provide special treatment to any one party and is regulated as to the rates charged, the liability assumed, and the service provided. A common carrier must obtain a certificate of public convenience and necessity from the Federal trade commission for interstate traffic Communication Protocol: The method by which two computers coordinate their communications. BISYNC and MNP are two examples optimize business performance, top management must define and create the necessary culure o Company Culture: A system of values, beliefs, and behaviors inherent in a company Competitive Advantage: Value created by a company for its customers that clearly distinguishes it from the competition, and provides its customers a reason to remain loyal Competitive Benchmarking: Benchmarking a product or service against competitors. Also see Benchmarking Competitive Bid: A price/service offering by a supplier that must compete with offerings from otner suppliers Complete On-Time Delivery(COTD): A measure of customer service. All items on any given order must be delivered on time for the order to be considered as complete and on time Definitions compiled by Kate vitasek Bellevue. Washington Please note: The Council of Logistics Management does not take responsibility for the content of these definitions, nor does the Council endorse these as official definitions except as noted
SUPPLY CHAIN VISIONS LOGISTICS TERMS and GLOSSARY Updated October 2003 Definitions compiled by: Kate Vitasek Supply Chain Visions Bellevue, Washington Please note: The Council of Logistics Management does not take responsibility for the content of these definitions, nor does the Council endorse these as official definitions except as noted. Combined Lead Time: See Cumulative Lead Time Commercial Invoice: The commercial invoice is a legal document between the supplier and the customer that clearly describes the sold goods, and the amount due on the customer. The commercial invoice is one of the main documents used by customs in determing customs duties. It is also the primary document used for billing and accounts receivable. Committed Capability: The portion of the production capability that is currently in use, or is scheduled for use. Commodity: An item that is traded in commerce. The term usually implies an undifferentiated product competing primarily on price and availability. Commodity Buying: Grouping like parts or materials under one buyer’s control for the procurement of all requirements to support production. Commodity Procurement Strategy: The purchasing plan for a family of items. This would include the plan to manage the supplier base and solve problems. Common Carrier: Transportation available to the public that does not provide special treatment to any one party and is regulated as to the rates charged, the liability assumed, and the service provided. A common carrier must obtain a certificate of public convenience and necessity from the Federal Trade Commission for interstate traffic. Communication Protocol: The method by which two computers coordinate their communications. BISYNC and MNP are two examples. Company Culture : A system of values, beliefs, and behaviors inherent in a company. To optimize business performance, top management must define and create the necessary culture. Competitive Advantage: Value created by a company for its customers that clearly distinguishes it from the competition, and provides its customers a reason to remain loyal. Competitive Benchmarking: Benchmarking a product or service against competitors. Also see: Benchmarking Competitive Bid: A price/service offering by a supplier that must compete with offerings from other suppliers. Complete & On-Time Delivery (COTD): A measure of customer service. All items on any given order must be delivered on time for the order to be considered as complete and on time
SUPPLY CHAIN VISION LOGISTICS TERMS and GLOSSARY Updated October 2 Complete manufacture to Ship Time: Average time from when a unit is declared shippable by manufacturing until the unit actually ships to a customer Compliance: Meaning that products, services, processes and/or documents comply with Compliance Checking: The function of EDI processing software that ensures that all transmissions contain the mandatory information demanded by the eDI standard. Compares information sent by an EDI user against EDI standards and reports exceptions. Does not ensure that documents are complete and fully accurate, but does reject transmissions with missing data elements or syntax errors Compliance Monitoring: A check done by the VAN/third party network or the translation software to ensure the data being exchanged is in the correct format for the standard being used Compliance Program: A method by which two or more EDI trading partners periodically report conformity to agreed upon standards of control and audit. Management produces statements of compliance, which briefly note any exceptions, as well as corrective action planned or taken, in accordance with operating rules. Auditors produce an independent and objective statement of opinion on management statements Component: Material that will contribute to a finished product but is not the finished product itself. Examples would include tires for an automobile, power supply for a personal computer, or a zipper for a ski parka Computer Aided Engineering( CAE): The use of computers to model design options to stimulate their performane Configuration: The arrangement of components as specified to produce an assembly Configure/Package-to-Order: A process where the trigger to begin manufacture, final assembly or packaging of a product is an actual customer order or release, rather than a market forecast. In order to be considered a Configure-to-Order environment, less than 20% of the and process documentation is available at time of order ltep and virtually all necessary design Confirmation: With regards to EDI, a formal notice(by message or code) from a electron mailbox system or EDI server indicating that a message sent to a trading partner has reached its intended mailbox or been retrieved by the addressee Definitions compiled by Kate vitasek Bellevue. Washington Please note: The Council of Logistics Management does not take responsibility for the content of these definitions, nor does the Council endorse these as official definitions except as noted
SUPPLY CHAIN VISIONS LOGISTICS TERMS and GLOSSARY Updated October 2003 Definitions compiled by: Kate Vitasek Supply Chain Visions Bellevue, Washington Please note: The Council of Logistics Management does not take responsibility for the content of these definitions, nor does the Council endorse these as official definitions except as noted. Complete Manufacture to Ship Time: Average time from when a unit is declared shippable by manufacturing until the unit actually ships to a customer. Compliance: Meaning that products, services, processes and/or documents comply with requirements. Compliance Checking: The function of EDI processing software that ensures that all transmissions contain the mandatory information demanded by the EDI standard. Compares information sent by an EDI user against EDI standards and reports exceptions. Does not ensure that documents are complete and fully accurate, but does reject transmissions with missing data elements or syntax errors. Compliance Monitoring: A check done by the VAN/third party network or the translation software to ensure the data being exchanged is in the correct format for the standard being used. Compliance Program: A method by which two or more EDI trading partners periodically report conformity to agreed upon standards of control and audit. Management produces statements of compliance, which briefly note any exceptions, as well as corrective action planned or taken, in accordance with operating rules. Auditors produce an independent and objective statement of opinion on management statements. Component: Material that will contribute to a finished product but is not the finished product itself. Examples would include tires for an automobile, power supply for a personal computer, or a zipper for a ski parka. Computer Aided Engineering (CAE): The use of computers to model design options to stimulate their performance. Configuration: The arrangement of components as specified to produce an assembly. Configure/Package-to-Order: A process where the trigger to begin manufacture, final assembly or packaging of a product is an actual customer order or release, rather than a market forecast. In order to be considered a Configure-to-Order environment, less than 20% of the value-added takes place after the receipt of the order or release, and virtually all necessary design and process documentation is available at time of order receipt. Confirmation: With regards to EDI, a formal notice (by message or code) from a electronic mailbox system or EDI server indicating that a message sent to a trading partner has reached its intended mailbox or been retrieved by the addressee
SUPPLY CHAIN VISION LOGISTICS TERMS and GLOSSARY Updated October 2003 Confirming Order: A purchase order issued to a supplier, listing the goods or services and terms of an order placed orally or otherwise before the usual purchase document Conformance: An affirmative indication or judgment that a product or service has met the requirements of a relevant specification, contract, or regulation. Synonym: Compliance Consignee: The party to whom goods are shipped and delivered. The receiver of a freigh shipment Consignment: 1)A shipment that is handled by a common carrier. 2) The process of a supplier placing goods at a customer location without receiving payment until after the goods are used or sold. Also see: Consignment Inventory Consignment Inventory: 1) Goods or product that are paid for when they are sold by the reseller, not at the time they are shipped to the reseller. 2)Goods or products which are owned by the vendor until they are sold to the consumer Consignor: The party who originates a shipment of goods(shipper). The sender of a freight shipment, usually the seller Consolidation: Combining two or more shipments in order to realize lower transportation rates Inbound consolidation from vendors is called make-bulk consolidation: outbound consolidation to customers is called break-bulk consolidation Consortium: A group of companies that work together to jointly produce a product, service, or project Constraint: A bottleneck, obstacle or planned control that limits throughput or the utilization of Consumer- Centric Database: Database with information about a retailer's individual consumers, used primarily for marketing and promotion Consuming the Forecast: The process of reducing the forecast by customer orders or other types of actual demands as they are received. The adjustments yield the value of the remaining forecast for each Container: 1)A"box", typically ten to forty feet long, which is used primarily for ocean freight shipments. For travel to and from ports, containers are loaded onto truck chassis' or on railroad flatcars. 2)The packaging, such as a carton, case, box, bucket, drum, bin, bottle, bundle, or bag that an item is packed and shipped in Definitions compiled by Kate vitasek Bellevue. Washington Please note: The Council of Logistics Management does not take responsibility for the content of these definitions, nor does the Council endorse these as official definitions except as noted
SUPPLY CHAIN VISIONS LOGISTICS TERMS and GLOSSARY Updated October 2003 Definitions compiled by: Kate Vitasek Supply Chain Visions Bellevue, Washington Please note: The Council of Logistics Management does not take responsibility for the content of these definitions, nor does the Council endorse these as official definitions except as noted. Confirming Order: A purchase order issued to a supplier, listing the goods or services and terms of an order placed orally or otherwise before the usual purchase document. Conformance: An affirmative indication or judgment that a product or service has met the requirements of a relevant specification, contract, or regulation. Synonym: Compliance. Consignee: The party to whom goods are shipped and delivered. The receiver of a freight shipment. Consignment: 1) A shipment that is handled by a common carrier. 2) The process of a supplier placing goods at a customer location without receiving payment until after the goods are used or sold. Also see: Consignment Inventory Consignment Inventory: 1) Goods or product that are paid for when they are sold by the reseller, not at the time they are shipped to the reseller. 2) Goods or products which are owned by the vendor until they are sold to the consumer. Consignor: The party who originates a shipment of goods (shipper). The sender of a freight shipment, usually the seller. Consolidation: Combining two or more shipments in order to realize lower transportation rates. Inbound consolidation from vendors is called make-bulk consolidation; outbound consolidation to customers is called break-bulk consolidation. Consortium: A group of companies that work together to jointly produce a product, service, or project. Constraint: A bottleneck, obstacle or planned control that limits throughput or the utilization of capacity. Consumer-Centric Database: Database with information about a retailer’s individual consumers, used primarily for marketing and promotion. Consuming the Forecast: The process of reducing the forecast by customer orders or other types of actual demands as they are received. The adjustments yield the value of the remaining forecast for each period. Container: 1) A "box", typically ten to forty feet long, which is used primarily for ocean freight shipments. For travel to and from ports, containers are loaded onto truck chassis’ or on railroad flatcars. 2) The packaging, such as a carton, case, box, bucket, drum, bin, bottle, bundle, or bag, that an item is packed and shipped in