supply chain acronyms and definitions

Supply Chain Glossary

Acronym Term Description

ABC Classification The prioritisation and ranking based on a given criteria. e.g.. volume, value, profitability, criticality etc.

3PL Third Party Logistics (Service) Provider

A distribution company that offers transport, warehousing, inventory and information systems management to companies in the Supply Chain. See also Third Party Distribution Company.

4PL Fourth Party Logistics Provider

A 4PL provider refers to a specialised organisation that manages and coordinates logistics services on behalf of another company but that does not supply or operate its own assets and resources.

ABC Activity Based Costing

A method of measuring the cost of products, services, customers, and other relevant “cost objects”. ABC first assigns the cost of resources to the activities performed by the organization, according to their use of resources. Then, the costs of activities are assigned to the products, services, or customers, according to their use of activities.

ABM Activity Based Management

The management processes that use the information provided by an activity-based cost analysis to improve the profitability of an organisation. ABM includes performing activities more efficiently, eliminating the need to perform activities that do not add value for customers, improving the design of products, and improving the relationship with customers and suppliers. The goal of ABM is to enable customer needs to be satisfied while making fewer demands on the organisation’s resources.

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AGV Automatic Guided Vehicle

An unmanned, computer controlled item of mechanical handling equipment for moving merchandise around a warehouse. The AGV moves pallets or roll cages using it's own independent power source, usually following a predetermined path around the warehouse.

AI Application Identifier A two-, three-, or four-digit prefix used within UCC/EAN-128 Symbols to define the meaning of information that follows.

AIM® Association des Industries de Marque

AIM is the European Brands Association. It represents the branded goods industries in Europe on key issues which affect the ability of brand manufacturers to design, distribute and market their brands. AIM’s membership groups 1800 companies of all sizes through corporate members and national associations in 21 countries.

APO Advanced Planner and Optimiser Integrated system module from SAP covering Demand & Supply Planning.

APR Adjustable Pallet Racking The variant of selective pallet racking where the components are adjustable and can be reconfigured for different unit load dimensions.

APS Advanced Planning and Scheduling

Designation for demand and supply planning application modules, down to detailed execution scheduling.

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ASN Advanced Shipping Notice See Dispatch Advice.

ATC Alternative Trade Channel

Refers to all trade channels that are regarded as not being part of the primary trade for traditional grocery channel, but are of high importance to certain categories and shopping and consumption occasions. The list of Alternative Trade Channels will be different from one market to the other.

BBD Best Before Date The date of minimum durability until which a foodstuff retains its specific properties when properly stored. (EU Official definition)

BPCS Business Planning & Control System Enterprise resource planning system from System Software Associates, Inc.

C&C Cash & Carry An operation run by a third party to sell goods on to businesses and consumers in small retail quantities. Unlike a wholesaler, buyers often collect the product themselves.

CCSCustomer / Channel / Sales Area Contribution Statement

The CCS offers a way to measure the contribution of an individual customer or a channel to the companies overhead and profits. In order to be able to manage profitable customer / channel / sales area development we must be able to measure their performance by considering the total cost of doing business with them.

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CDO Cash-On-Delivery The term applied when physical payment for goods is made in exchange, at the time of delivery.

CMI Co-Managed Inventory

The vendor (supplier) has the responsibility for maintaining national and / or regional distribution centre stock levels for retailers, wholesalers and distributors in an efficient and cost-effective manner. The main difference with VMI is that the customer validates the pro-forma replenishment order and sends Company a confirmed order to be delivered.

CP Control ProceduresTechnical instruction document concerning concepts and procedures related to quality monitoring and control, distributed by Nestec, CT-AID. (available on the Corporate Technical, Production and R&D intranet site)

CPFRCollaborative Planning, Forecasting and Replenishment

CPFR is the sharing of forecasts and related business information among business partners in the Supply Chain to enable automatic product replenishment.

CRM Customer Relationship Management

CRM Customer Relationship Management - a formal approach, often accompanied by computerised databases to ensure that all dealings with customers are efficiently managed.

CRP Continuous Replenishment Planning

A replenishment process which seeks to regularly 'top-up' customer RDCs, and stores directly by suppliers, using an automated ordering process, based on the sales history and forecast. It is a recognized ECR practice and basically the same as CMI.

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CU Consumer Unit The smallest level of packaging that relates to what the consumer purchases from a store.

D&SP Demand & Supply Planning

Supply Chain process with mission to ensure that stock of finished goods is available at correct stock location to meet customer demand while optimising the resource utilisation.

DC Distribution Centre A distribution network location (warehouse) where finished goods are stored and customer orders are delivered from.

DNS Domain Name Service A service used on the Internet to help the network route information to the correct computers.

DPA Demand Plan Accuracy Supply Chain KPI measuring the absolute error of the demand plans and the bias on a monthly basis.

DRP Distribution Requirements Planning

The function of determining time-phased requirements for inventory at distribution locations and providing consolidated requirements to the production and materials planning process.

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EAN European Article Numbering

International Article Numbering Association which changed it's identity to GS1 on 18 Feb 2005.

EAS Electronic Article Surveillance

Simple electronic tags that are either on or off. When an item is purchased or borrowed legally, the tag is turned off. When someone passes a gate area holding an item with a tag that has not been turned off, an alarm sounds.

E-business Electronic-business

Is concerned with transforming offline business processes into online processes through an electronic or web-based approach to create sustainable competitive advantage and operational efficiency across employees (B2E), partners, suppliers & customers (B2B) and consumers (B2C).

ECR Efficient Consumer Response

An initiative by suppliers, distributors and retailers to co-operate on improving the Supply Chain, through to the consumer.

EDI Electronic Data Interchange

The paperless exchange of business documents or information by electronic computer-to-computer transfer without human intervention, based on agreed industry coding and message standards.

EFT Electronic Funds Transfer A computerized system that processes financial transactions and related information or performs the exchange of value between two parties.

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EMS Event Management System

Collaboration platform based on the SAP-Project System module that supports the Event Management approach. (see Event Management)

EOQ Economic Order QuantityAn inventory model that determines how much to order by determining the amount that will meet customer service levels while minimising total ordering and inventory holding costs.

EPAL European Pallet Association Owners and authentication authority for the EPAL trademark. See also UIC.

EPC Electronic Product Code This coding scheme, developed by the Auto ID centre uniquely identifies an individual item.

EPCIS EPC Information Service (EPCIS)

EPCIS is a computer system that manages and delivers physical mark-up language (PLM) to information requesters.

EPoS Electronic Point of Sale The point at which sales activity is completed and recorded, traditionally the cash register, where the true real time sale of goods takes place.

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ERP Enterprise Resource Planning

A business management system that integrates all facets of the business, including planning, manufacturing, sales, and marketing.

FEFO First Expiry First Out The method whereby the goods which have the shortest expiry date are delivered (sold) and/or consumed first. This is a Group standard rule for products with open date.

FIFO First In First Out

1. Stock valuation - The method of valuing stocks which assumes that the oldest stock is consumed first and thus issues are valued at the oldest price. 2. Stock rotation - The method whereby the goods which have been longest in stock are delivered (sold) and/or consumed first.

FLT Fork Lift Truck A mechanical handling device used for retrieving and handling pallets within the environment of a warehouse, powered by gas or electricity.

FMCG Fast Moving Consumer Goods

Description of common high volume products such as food, hygiene product, or cleaning supplies. These would be products that the average consumer would frequently purchase such as water, coffee, health & beauty.

FOB Free on BoardINCOTERM between a buyer and a seller, which defines the transfer of risk, cost and responsibilities as they pertain to the movement of the goods. It does not specify the transfer of title.

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FTL Full Truck Load A shipment in which the freight completely fills the trailer or container.

FTZ Foreign Trade Zone

A foreign trade zone is an area within the United States that the government pretends is outside the country, or at least, outside of U.S. Customs territory. One can thus legally import certain types of merchandise into one without going through formal customs entry procedures or paying import duties for a number of different purposes. Note: Similar arrangements exist in many other countries across the globe with varying denominations.

GCI Global Commerce Initiative

An initiative launched in October 1999 and created by manufacturers, retailers and sponsors (Trade Industry Associations, regional ECR initiatives, VICS and standard bodies) to improve the performance of the international Supply Chain for consumer goods through the collaborative development and endorsement of recommended voluntary standards and best practices.

GI General Instructions

Technical instruction document concerning policies, concepts and systems and not addressed to a specific audience, distributed by Nestec, CT-AID (available on the Corporate Technical, Production and R&D intranet site). GIN, GIC, GIS in the old technical document classification.

GIAI Global Individual Asset Identifier Unique EAN.UCC System identification number for a physical entity of any characteristics.

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GLN Global Location Number Unique EAN.UCC System identification number for legal entities, functional entities, and physical locations.

GPS Gross Proceeds of Sales

GPS Global Positioning System Satellite navigation system used for accurately pinpointing the location of receivers, frequently vehicle mounted. Used for vehicle tracking.

GPU Global Positioning Unit

A navigational tool that assists travellers whether travelling by car, boat, plane or foot. These devices provide information pertaining to state and country boundaries, lakes, rivers, interstate highways, even exit information for the federal interstate highway system. The GPU can locate services such as food, lodging and gas stations.

GRAI Global Returnable Asset Identifier

Unique EAN.UCC System identification number for a reusable package or transport equipment of a certain value, such as a beer keg, gas cylinder, pallet, or crate.

GS1 Global Standards 1Voluntary standards organization charged by the GS1 board with the management of the EAN.UCC System and the Global Standard Management Process (GSMP). Previously known as EAN International.

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GS1 MOs GS1 Member Organisations

A member of GS1 (former EAN International, UCC) that is responsible for administering the EAN.UCC System in its country (or assigned area) and for managing the correct use of the EAN.UCC System by its member companies.

GS1 US Global Standards 1 See GS1. Previously known as Uniform Code Council. (UCC)

GSRN Global Service Relation Number

Unique EAN.UCC System identification number used to identify the recipient of services in the context of a service relationship.

GTAG Global TagIs an RFID standard developed by the UCC and EAN international. The interface protocols developed by this project team are currently going through the process to become the international standard.

GTIN Global Trade Item NumberThe Global Trade Item Number is used for the unique identification of trade items world-wide. EAN/UCC-8, UCC-12, EAN/UCC-13 and EAN/UCC-14 numbering structures are used, all of them can be considered as 14-digit Global trade Item Identification numbers.

ID Identification NumberA numerical name for something in the Supply Chain to provide unique identification for it. ID numbers are used to retrieve information previously exchanged between trading partners and stored in their computer database files.

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IMSP Inter-Market Supply Planning

Group standard procedures based on the weekly /daily exchange of information directly between the producing and receiving companies.

IRA Inventory Record Accuracy

No. of Items counted and correct (within tolerance) x 100% divided by Total No. of Items counted. Also referred to as inventory accuracy.

ISO International Organization for Standardization

A non-governmental organisation which mission is to promote the development of standardisation and related activities in the world in view of facilitating the international exchange of goods and services.

ITF Interleaved Two of Five Interleaved 2 of 5 is a continuous, self checking symbology primarily used in industrial and retail applications.

JIT Just-In-TimeAn inventory control system that manages the flow of material or products such that they arrive at a desired location Just-In-Time for use or further action. This broadly refers to the philosophies of short lead times and low inventory levels across the Supply Chain.

KPI Key Performance Indicators

Measures used to assess business performance in conjunction with defined business goals, objectives and processes.

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LI Laboratory Instruction Technical instruction document concerning validated, formal methods for testing product, raw materials and packaging materials. (for laboratories or on line)

LIFO Last In First OutThe method whereby the goods which have been shortest in stock are delivered (sold) and/or consumed first. May be used in very specific situations, e.g. distribution channel with very long delivery lead time compared to others.

LTL Less Than Truckload A shipment in which the freight does not completely fill the trailer or container; or a particular consignor's freight when combined with others to produce a full truckload or full container load.

LTT Logistics Trade Terms See distribution allowances.

M&R Maintenance & Repair The activity required in order to maintain distribution equipment in a condition that ensures safe, reliable and efficient operation.

MHE Mechanical Handling Equipment

Any equipment used to give mechanical advantage in the handling of product. Includes pallet trucks, fork lift trucks, cranes etc.

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MPS Master Production Scheduling

The activity to establish a feasible production plan ensuring the appropriate production source and total level of stock for locally produced goods, in order to meet the demand plan in the most cost-effective way.

MRP Materials Requirements Planning

Activity of calculating time-phased requirements for materials based on bill of material data, inventory data and production schedule.

MRP II Manufacturing Resource Planning

MRP II is a method for planning of all the resources of a manufacturing company. It is made up of a variety of functions, each linked together: business planning, production planning, master production scheduling, material requirements planning, capacity requirements planning and the execution systems for capacity and priority.

NDC National Distribution Centre

A single distribution network location where the national finished goods stock for a business, or range of products, is stored and distributed from.

NPS Net Proceeds of Sales

ONS Object Name ServiceA system for looking up unique EPC's and pointing computers to information about the item associated with the code. ONS is similar to the domain name system , which directs computers to sites on the internet.

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OTDIF On Time Delivery In Full A performance measure of compliance with a customer order. Delivering what was ordered, in the manner it was ordered, for the time it was ordered, in the place it was required.

POD Proof of Delivery The document or signal that is sent when a delivery or shipment has been received and checked.

POS Point of Sales (or point of purchase). This can mean a retail shop, a checkout counter in a shop, or a variable location where a transaction occurs with the consumer (e.g. vending machine).

POS data Point of Sales DataIs consumer purchase information transferred electronically from POS to a database to support analytical and strategic decision making by our Customers (i.e. Organized Trade) and / or their suppliers.

PPI Process Performance Indicator

A measure of the performance of a specific activity or process within the Supply Chain. For example cases picked per shift is a measurement of the picking activity within the distribution operation. PPIs are more focussed on specific activities and process than KPIs and tend to be used more routinely. (daily, weekly etc.)

QA Quality Assurance All the planned and systematic activities, preventive measures and precautions taken to ensure that the predefined quality of a product or a service will be reached and consistently maintained.

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QR Quick Response

A consumer-driven system of replenishment in which high-quality products and accurate information flow through a paperless (EDI) system between all distribution points from manufacturing line to retail checkout counter. Distributors, carriers and suppliers act as trading partners and focus on improving the total supply system.

RDC Regional Distribution Centre

Distribution network location, with the role of a regional hub, where the finished goods stock for a geographical area is stored in limited quantity for onward distribution.

RFID Radio Frequency Identification

A method of identifying unique items using radio waves. The big advantage over bar code technology is that lasers must see a bar code to read it. Radio waves do not require direct line-of-sight and can pass through materials, such as cardboard and plastic.

RFT Radio Frequency TerminalWireless terminal for real-time and mobile data communication using radio frequency connection via a radio controller integrated on the local area network. They can be handheld or vehicle mounted terminals.

RSP Reusable Secondary Packaging

Additional packaging designed to facilitate self-service sales or to advertise and market the product (e.g. crates and trays) that can be used more than once, however the reverse logistic flow must be ensured.

RTI Returnable Transit Items Reusable methods of moving products. Examples include wooden pallets, metal roll cages, plastic crates and plastic/metal dollies.

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RTP Returnable Transit Packaging

Packaging that can be returned to suppliers for re-use. Sometimes also referred to as Reusable Secondary Packaging. (RSP)

SAP Systeme Anwendungen Produkte

Systeme Anwendungen Produkte or Systems Applications Products in data processing. SAP is the world's largest inter-enterprise software company and the world's fourth-largest independent software supplier, overall. It was founded in Walldorf, Germany in 1972.

SBO Sales Based OrderingA system of building a store's replenishment order by using EPoS data to build a forecast of future requirements. Stock levels, shelf fills and lead times can all be included in the order generation calculation.

SCM Supply Chain Management

End to End Management of the flow of goods and services from the procurement of primary raw and packaging materials to the delivery of finished products to the consumer. This means that all strategic and operational decisions along a given Supply Chain should be in terms of service, costs and capability to react to market opportunities.

SCS Supply Chain Standards The operating and performance standards agreed between two or more parties for the efficient management of the Supply Chain.

SKU Stock Keeping UnitAlso referred to as a Traded Unit. A uniquely identifiable product unit. One product may have a number of variations, each of which is an individual stock keeping unit. The most common format is the case or carton.

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SLA Service Level Agreement A bi-lateral agreement between service user and service provider stating the level of service to be provided and the dispute resolution procedures.

SSCC Serial Shipping Container Code

The EAN·UCC number comprising 18 digits for identifying uniquely a logistic unit (e.g. pallet, container).

TDC Total Delivered Costs

Total Delivered costs represent the financial scope of the Operation EXCELLENCE 2007 initiative. It consists of Cost of Goods Sold (variable, fixed and depreciation), Distribution (variable and fixed), Bad Goods and the Capital Charge on Trade Net Working Capital and Fixed assets

TL Technical Letter Technical instruction document that substitutes a letter, in order to have a Technical instruction identification for easy reference.

TM Technical Manuals

Technical instruction document concerning Engineering issues not related to specific products or product groups, distributed by Nestec, CT-AID (available on the Corporate Technical, Production and R&D intranet site). TMN, TMC, TMR, PI in the old technical document classification.

TQM Total Quality ManagementAn approach to business management that focuses on quality and typically has: a strong customer orientation, total involvement, measurement systems, systematic support, and continuous improvement.

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TSP Transshipment PointDistribution network location through which deliveries are made to customers from another network location and where inbound deliveries are reconfigured for onward delivery to customers. A TSP differs from an RDC in that it normally holds no stock.

U.P.C. Universal Product CodeA bar coding and numbering system of North America developed in the late 1960's and early 1970's by the U.S. food and grocery industry and used for product identification of consumer items that are typically scanned at retail point-of-sale.

UCC Uniform Code Council Previously the Numbering Organisation in the USA to administer and manage the EAN·UCC system standards in the USA and Canada now replaced by GS1.

UHF Ultra High Frequency A band of the electromagnetic spectrum in the radio wave range.

UN / EDIFACT

United Nations/Electronic Data Interchange For Administration, Commerce and Transport

A set of internationally agreed standards, directories and guidelines for the electronic interchange of data.

VICS Voluntary Interindustry Commerce Standards

A global organisation focused on the improvement of the flow of product and information throughout the entire Supply Chain in the retail industry.

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VMI Vendor Managed Inventory

The vendor (supplier) has the responsibility for maintaining national and / or regional distribution centre stock levels for retailers, wholesalers and distributors in an efficient and cost-effective manner. The replenishment orders are based on the inventory data of the customer distribution centre (stock levels and withdrawals) and in line with the agreed service levels.

VNA Very Narrow AisleWhere the aisle width (~1.45m) allows only for forward and backward movement along the aisle. Suitable fork lift trucks (FLTs) are needed for such an operation, invariably using guides (wires or rails) to provide accurate directional control.

WIP Work-in-Process Parts and subassemblies in the process of becoming completed finished goods.

WMS Warehouse Management System

System for the control of all the operations in a storage facility from receiving to shipping, often enhanced by tools permitting the optimisation of downstream transports

XML Extensible Mark-up Language

A standard for flexible structuring of messages, designed particularly to overcome the limitations of HTML.

Active Tag An RFID tag that uses a battery to power its microchip and communicate with a reader.

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Cost of Distribution

The total of all cost classified as distribution activities. This will include all movement and storage of finished goods from leaving the factory to the point those goods are delivered to the customer. It also includes cost of pallets, cost of the customer service function and distribution common charges.

Cost to Serve

The cost to serve a customer is the sum of the costs of all the activities performed in an organisation to fulfil individual customer requirements in terms of service.In the CCS, this represents distribution expenses and allowances, selling expenses and product customisation costs.

Inventory Carring Costs Costs, which remain practically unchanged over the calendar year when the volume of operations (sales) varies only within narrow limits. Beyond that, they change by steps.

Fixed Costs Costs, which remain practically unchanged over the calendar year when the volume of operations (sales) varies only within narrow limits. Beyond that, they change by steps.

Present Value Today's value of future cash flows, discounted at an appropriate rate.

AmbientThe generic term applied to products stored and transported at ambient temperature, requiring no specific temperature control equipment. Generally the temperature range is between +5oC and +30oC.

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Auto ID CentreThe Auto-ID Centre was industry funded program founded in October 1999 by the UCC, Massachusetts Institute of Technology (MIT), P&G and Gillette. It was replaced in the autumn of 2003 by the Auto ID labs and the EPCglobal organization.

Average InventoryThe Average Inventory level over a period of time. ;maybe computed on a daily, weekly, monthly, yearly or other period basis by averaging the opening and closing inventory levels. (simple: 2 or weighted with time)

Back Order Product ordered but out of stock and promised to ship when the product becomes available.

BackhaulAny return load taken after the main delivery has been made, not necessarily from the same warehouse. Term also used to designate pickups by customers at the supplier's despatch location.

Bar Code Scanners Electronic device to read bar codes and convert them into electrical signals understandable by a computer device.

Bar CodesNumber transformed into a meaningful series of dark lines and light spaces between them that a scanner can transform back into a number, and this number is the key for a data base with all other information on the product, service or site.

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Batch Picking Picking, by article or order, where the orders for a specified time period are divided into batches that improves the overall order assembly performance.

Benchmarking

The process of comparing the performance of a business unit or operation against the practices of other units in or outside your firm or industry -- for the purpose of improving performance. Companies also benchmark internally by comparing present with past performance.

Best Practice Also known as competitive benchmarking, the methodology that determines state-of-industry performance or application.

Bill of Lading A transportation document issued by a carrier that records the receipt of goods for shipment and the contract terms. It is not an invoice.

Bit The smallest unit of digital information - a single one or zero. A 96-bit EPC is a string of 96 ones and zeros.

Block Storage Or bulk storage. Pallets stored on top of another in an area without individual pallet racking.

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Box VanA distribution vehicle, usually used in secondary distribution, constructed as a single unit, no trailer, where the storage section resembles a box, either with a hung door or roller shutter door.

Break-BulkConsolidation of a number of small shipments for various customers into a larger load. Shipped to a location near the customers; then the small shipments are distributed to the customers.

Brokerage A business that provides broker services; or the fee paid to a broker.

Bulk Storage See block storage.

Business Excellence Strategy

Establishes clear competencies and responsibilities promoting communication and performance measurement to continuously improve efficiency and effectiveness within the entire organization.

Carrier Business partner who provides transportation services.

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Case The level of packaging at which each SKU is normally sold to Company's customers.

Category A distinct, separate and manageable group of products that are perceived by consumer to be interrelated

Category ManagementThe organisation of multi-functional teams around customer oriented categories, and giving these teams responsibility for the strategy, operations and performance of the category across the different functions of the business.

Central Distribution Centre See also National Distribution Centre. A distribution network location through which all deliveries of a specific range of products pass.

Champion Person in charge of coaching and coordinating joint multi-functional or multi-partner processes, e.g. the Demand and Supply Planning Process of a product division.

Check Digit A digit calculated from the other digits of an Element String, used to check that the data has been correctly composed. (see EAN.UCC Check Digit Calculation)

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CHEPCHEP is the global leader in pallet and container pooling services, serving customers in a wide range of industrial and retail Supply Chains. All pallets are marked with the CHEP or GKN logo and are painted in blue.

Chilled Generally this is in the temperature range +2°C to +4°C but can vary by product category.

Class 0 tags Tags with a number embedded at point of manufacturer; write once, read many times.

Class 1 tags Tags on which the user inserts a number at the point of using the tag; tags that can be written once, read many.

Composite DeliveryA store delivery that has both ambient grocery and chilled/frozen products transported on the same trailer or vehicle. The trailer will be divisible into different temperature compartments.

Composite Distribution Centre

A multi-temperature distribution centre. The receipt, storage and handling of products typically takes place in a variety of on-site chambers each operating at a specific temperature.

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Consignee The party to whom goods are shipped and delivered. The receiver of a freight shipment.

Consolidated Deliveries The loading of two or more suppliers' deliveries to a retailer's RDC on a single vehicle. This aims to improve load utilisation and reduce unloading time at the RDC.

Consolidation Centre

Distribution network location, irrespective of ownership and operational control, used to bring together the finished goods from a number of independent regional manufacturers within one warehouse. The objective is to improve efficiency in both warehousing and onward delivery to customer RDCs.

Container The transport unit used to move goods over long distances. A container is usually multi modal in that it can be moved by road, rail or sea.

Contingency Planning Planning for unexpected events, usually where those events would have a significant impact on the operation, for example disaster planning.

Continuous ImprovementThe management/organisational methodology whereby process and activity improvements are identified and implemented on a continual basis. This methodology is distinct from improvement through step change.

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Counter Balance Truck A fork lift truck (FLT) where the forks and the mast are in front of the leading wheels.

Cross AislesAisles running perpendicular to the aisles between racks. Cross aisles are used to improve the access to pallet locations for cross warehouse movements. They will often have pallet spaces above them.

Cross-Docking The process of moving goods directly from the receiving dock to the shipping dock, without the need to place the merchandise in storage.

Curtain-Sided vehicle or trailer

Distribution vehicles or trailers where the fabric of the storage area can be drawn back, like a curtain, to facilitate loading. This method allows side loading and unloading.

Customer CollectionAlso referred to as Customer Pick-Up or Customer Backhaul. Where the customer collects from a distribution network location, usually associated with the Back Haul principle where a customer vehicle is delivering near a supplier's distribution centre.

Customer ProfileA group of key statistics and measures relating to a customer, that defines the nature of that customer in order to categorise and improve the performance of serving that customer.

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Customer Service That part of the Customer Service & Distribution process relating to the administration and management of the Company Customer interface.

Customer Service Level The magnitude of the performance measures applied to the collection of goods and services referred to collectively as Customer Service.

Cycle CountingA cycle count is one a stock take undertaken on a regular and defined basis. It can be related to high value or fast moving lines articles more frequently than slow moving ort low value articles lines. The cycle can also be randomly generated by the system.

Cycle Time The amount of time it takes to complete a business process. For example, the amount from when a service is ordered until it is received by the customer.

Data Standard A definition of how data is to be consistently defined and used.

Data StructureThe UCC and EAN numbering structures defined in the various lengths required for the different identification purposes which all share a hierarchical composition. Their composition blends the needs of international control with the needs of the users.

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Delivery Total amount of goods received together at a specific delivery point and time. Also referred to as Drop.

Delivery Lead Time The length of time between the order acquisition and the actual delivery receipt by the customer.

Delivery Point The physical location where an order or shipment is delivered to. For example: store, kiosk, depot etc.

Delivery tour The route taken to deliver customer orders that starts end ends at a depot or transhipment point.

Demand Chain Another name for the Supply Chain, with emphasis on customer or end-user demand pulling materials and product through the chain.

Demand Plan Best possible estimate of future demand including base demand and events uplifts.

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Despatch advice

The Despatch Advice is a message specifying details for the goods despatched under conditions agreed between the buyer and the seller with the function of advising the consignee of the detailed contents of a consignment. The message relates to a single despatch point and a single or multiple destination points and it may cover a number of different items, packages or orders. The message allows the consignee to know what

Despatch Location Physical location from which goods are shipped to another despatch location or delivered to customers. Can be Company owned or third party.

Despatch Plan Time-phased plan of future movements of goods from a Despatch location.

Display PalletA pallet of goods of same or different SKU's prepared for direct use in the store to position or display the material(s) without further need of shelf stacking. Note: these pallets may have different food prints to a standard or homogenous pallet.

Distribution See Physical Distribution.

Distribution AllowancesDistribution Allowances are the allowances or rebates given to the customer to encourage him to configure his orders in a manner that improves Supply Chain efficiency; also referred to as Logistic Trade Terms. (LTT)

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Distribution Chain The sequence of storage, handling and transport requirements dependant on product type (e.g. Vending, temperature sensitive etc) required to get the product to the consumer.

Distribution Network The description of distribution facilities serving as supply and replenishment points for a given product range from factory to customer and / or consumer.

Distributor A customer appointed by the Company to perform sales and distribution functions to the end-customer over a significant part of our product range.

Dolly A wheeled base unit that is used to move crates, cases or other transit items through the Supply Chain. A roll cage is an example of a Dolly.

Double Deep Racking Racking system, where one pallet is stored behind another.

Drive-in Racking A racking system where the pallets are stored one in front of another, supported on cantilevered, front to back, rails between which a fork lift truck can move.

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Drive-through racking Similar to Drive-in Racking but where pallets are retrieved from the opposite end from put away in order to improve stock rotation.

Drop see Delivery.

Drop Body [vehicle] A distribution vehicle where the storage compartment can be detached from the vehicle unit, allowing the vehicle to pick up another storage compartment, or drop body.

Drop Size The physical size of a single delivery made at one location.

Drop TrailersTrailers that are uncoupled from a tractor unit at a depot or store without the tractor unit waiting for the load to be unloaded. This releases the tractor unit for further trucking or delivery work.

DunnageMaterial used around cargo to prevent damage, breakage or secure lading for transportation. Normally furnished by the shipper, and weight for same is charged for in the rating of the shipment.

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EAN International See GS1.

EAN Member Organisation See GS1 Member Organisations.

EAN.UCC Company Prefix An identification number assigned by the Member Organisation to a company for use in allocating item reference.

EAN.UCC Prefix A number with 2 or more digits, co-administered by GS1 and GS1 US denoting the format and meaning of a particular Element String.

EAN.UCC System The specifications, standards, and guidelines co-administered by GS1 and GS1 US.

EANCOM The international Electronic Data Interchange (EDI) standard provided by GS1 and GS1, conforming to the UN/EDIFACT standard.

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Economic ProfitIs the amount of profit earned by a company after deducting a capital charge to recognise the cost to a shareholder of investing capital in a business. The capital charge is based on the Adjusted Cost of Capital (ACC) multiplied by the invested capital.

Electronic Message A composition of Element Strings from scanned data and transaction information assembled for data validation and unambiguous processing in a user application.

EPCglobal

This new entity is a joint venture between the Uniform Code council (UCC) and EAN international approved in September 2003 to serve as a registry for the electronic product code (EPC) to administer standards related to the codes, and to direct implementation and commercialisation of the EPC vision and EPC network.

Event ManagementA common framework within Company to manage domestic or international projects such as new product launches, promotions or sourcing changes, involving all concerned functions.

Exchange PalletPallet intended for use among a designated group of shippers and receivers where ownership of the pallet is transferred with the ownership of the unit load; common pool pallet.

EZ Pass An RFID device used to automate payment at highway toll booths in North America.

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Factory Gate Pricing

Factory Gate Pricing The practice, common in many industry sectors, of goods being priced ‘at the factory gate’ i.e. with the purchaser arranging and paying for the transportation down the Supply Chain. Currently a topic of great debate in the grocery industry.

Factory Warehouse A warehouse within, or attached to a factory to store raw & packaging materials and / or finished goods ready for shipment.

Finished GoodsA product that has completed it's final stage of manufacturing, ready to be sent to the trade. Some finished goods might undergo additional work, such as labelling or re-packing for promotions.

Flow-through Racking

A racking system where the pallets are stored one behind another on inclined rollers, allowing the free flow of pallets through the racking, using gravity. The number of pallets per channel can vary considerable but would normally be between 7 and 15 pallets deep. Put away and retrieval are from opposite ends and FIFO is applicable.

Food Service Customer A customer organised to serve consumers products prepared for consumption e.g. through restaurants, canteen, or vending devices.

Freight Claim A claim against the carrier due to the loss of, or injury to, freight and/or erroneous rates and weights in assessment of freight charges.

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Freight Forwarder

One who gathers together less than truckload shipments from various shippers and consolidates them into solid car loads or truck loads, each car or truck being made up of articles taking a similar classification; he forwards them to a destination consigned to his own branch or agent.

FrozenA temperature at which frozen food is to be stored and distributed without the quality deteriorating below an acceptable standard. This is usually between -25°C and -28°C for storage, and below -18°C for transportation.

Full Range The ability to offer from a single location the Full Range of products listed.

Full-Service Leasing An equipment-leasing arrangement that includes full service support for maintaining the leased equipment in a fit condition for carrying out the task it was leased for.

Functional Manager A manager within the hierarchy of a function, responsible for the operation of part or all of that function within a defined geographical area i.e. factory, market or zone.

Gantt ChartA Gantt Chart is a horizontal bar chart that graphically displays time relationships. Gantt Charts provide a method for determining the sequence and particular actions which need to be taken to achieve a given objective.

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GlobalisationThe growing interdependence of countries world-wide through the increasing volume and variety of cross-border transactions in goods and services, and also through the more rapid and widespread diffusion of technology.

Goods Outwards This usually entails order assembly, load marshalling and vehicle loading.

Goods Receipt This usually covers the activities of vehicle unloading, receipt/scanning and transfer to put away.

Green Laning Green Laning is the introduction of a ‘fast-track’ for unloading without additional controls at receiver.

Handling Costs The cost involved in moving, transferring, preparing, and otherwise handling inventory.

Handling unitA handling unit (HU) is a physical unit consisting of packaging materials and the material contained in them. A HU has a single, scannable identification number (Serial Shipping Container Code) that can be used to call up the data for the handling unit.

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High bay storage Warehouse storage using narrow aisles and racking between 12 and 30 metres high. Used to store a large numbers of pallets on a small floor area. See also Stacker Cranes.

Inbound Logistics The control and movement of materials from suppliers and vendors into production processes or storage facilities.

INCOTERMS International commercial terms developed by the International Chamber of Commerce to define sellers' and buyers' responsibilities as they pertain to the movement of the goods.

In-house Distribution When the services carried out under the collective term 'distribution' are done by Company employees at Company owned facilities.

In-line Loading The direct loading from production line into containers or trailers, usually on to slip sheets.

Inter-modal Transportation Transporting freight by using two or more transportation modes such as truck and ocean.

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Inter-Operability The ability to communicate master data in a standardised and transparent way throughout the global data synchronisation network.

Interrogator A particular type of agile reader that can also write to certain type of tags.

Inventory The merchandise a business has on hand, or the merchandise on hand in the production process.

Inventory Cover The time for which a given inventory level is expected to cover demand. Usually expressed in weeks.

Inventory TurnsThis ratio measures how many times a company's inventory has been sold during a period of time. Operationally, inventory turns are measured as total throughput divided by average level of inventory for a given period.

ISO 1 pallet Euro-Pallet 1200mm x 800mm.

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ISO 2 pallet Industry pallet 1200mm x 1000mm.

ISO 3676ISO standard entitled: Packaging – Unit load sizes – Dimensions. This sets out the standard plan dimension for unit loads. Preferred 1200mmx1000mm, accepts 1200mmx800mm and 1140mmx1140mm.

ISO 6780

ISO standards entitled: General-purpose flat pallets for the transit of goods – Principle dimensions and tolerances. This sets out the standard plan and vertical dimensions for the pallets derived from the standard unit load sizes. Preferred size: 1200mmx1000mm, accepts 1200mmx800mm and 1140mmx1140mm.

Item See SKU.

Item Reference The part of the Global Trade Item Number® (GTIN®) allocated by the user to identify a trade item for a given EAN.UCC Company Prefix.

Kitting Assembly of components or parts into defined groups, prior to a further operation, such as unit assembly.

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Layer Pre-defined number of cases per SKU that cover the pallet footprint without overhang.

Layer Picking Concentrating the picking of layers into a separate area to improve picking efficiency and pallet build.

Line Haul ChargesThe charges from the point of origin to destination (store door to store door). These charges include one pick up and one delivery, plus movement between the two points. Anything in addition to this is covered under access charges.

Load Marshalling The arrangement of pallets, and other transit packaging, in to a loading pattern in the appropriate place on the warehouse floor ready for vehicle loading.

Loading Time The elapsed time required to load a vehicle, container or trailer from prepared load to ready to move. This will include scanning, loading, documentation and vehicle checks.

Logistic UnitAny "container" that permits the physical grouping and identification of goods for shipping. It could be a carton, a plastic wrap, a pallet, or a trailer, depending upon the industry of goods.

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Logistic Unit Identifier Identification of an item of any composition established for transport and/or storage that needs to be managed through the Supply Chain

LotA lot is a quantity of a specified product manufactured / filled / packaged under identical conditions and associated with a separate release decision. It can be expected to be uniform in its quality characteristics.

Master Data Alignment Activity aimed at ensuring the synchronisation of master data between partners along the Supply Chain.

Master Schedule Attainment

Supply Chain KPI measuring the absolute deviation of the actual production vs. a committed Master Schedule on a weekly basis.

Materials Handling The physical handling of products and materials.

Materials Management The management of material and product flows, including procurement, movement and storage, from acquisition through production to delivery.

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Menu Pricing Invoicing terms designed to encourage a customer to optimise an order in terms of the total costs of its delivery.

Merchandising The In-store organisation of the shelf space and products in order to maximise the sale of those products.

Mini-max Inventory Levels

Minimum and maximum inventory levels defined for a given product, which have to be respected in order to achieve, in average, a desired target customer service level. The minimum and maximum inventory levels are normally defined with minimum and maximum coverage of future demand.

Narrow Aisle Where the aisle width allows only for fork lift trucks with small turning circles, reach trucks, usually in the order of 2.6m-2.9m.

On Time Performance The proportion of the time that a transit system adheres to its published schedule times within stated tolerances.

Open Book CostingA method of costing a distribution operation. All costs of the operation are visible between service provider and customer. Normally the customer understands, accepts and meets the costs and the service provider charges a fee for managing the contract.

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Opening Stock Stock situation at the beginning of a planning period.

Order Assembly The accumulation of all the elements, full pallets, layers and picked cases, of an order in to a single place prior to load marshalling.

Order CycleThis includes the time and processes involved from the placement of the order to the receipt of the shipment. It includes the following processes: (1) communicating the order; (2) order processing; and (3) transporting the shipment.

Order Fill Rate The percentage of orders received from customers that are delivered in full and on time.

Order Fulfilment Comprises both Perfect Order and Perfect invoice, case fill rate and on time delivery.

Order Lead TimeThe time between placing an order and receiving a delivery. This can be measured at different points in the Supply Chain e.g. for stores this is the time between the ordering of an article and its delivery to store.

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Order Management The process carried out to match available stock to customer orders within the current guidelines for stock management.

Order Picking See Picking.

Order Processing The administrative process carried out to a customer order from receipt to invoicing.

Order to Cash The purpose of this process begins with capturing the customer's demand, execution, delivery, billing and payment application.

Outbound Logistics The movement and control of materials from suppliers to customers.

Outlet See Retail outlet.

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Outsource The practice of procuring the service(s) collectively known as 'distribution' from a source outside the Company business entity i.e. a third party.

PalletUnit Load Platform, a portable, horizontal, rigid platform used as a base, occasionally equipped with a superstructure, for assembling, storing, stacking, handling and transporting goods as a unit load through a distribution system.

Pallet Identification and Tracking

The aggregate of activities performed to ensure that pallets are uniquely identified and can be individually tracked all along the Supply Chain.

Partnerships and Strategic Alliances Companies who enter into agreements designed to benefit both parties.

Passive Tag An RFID tag that does not use a battery . The tag draws energy from an electromagnetic field created by the reader.

Perfect Invoice An invoice that is correct in terms of quantity, pricing, and results in payment in full and on time. (non legitimate delays excepted)

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Perfect Order An order that is complete and achievable. The aim of Order Preparation is to "clean" orders of any errors to create perfect orders.

Physical Distribution All logistics activities from the production line to the final user, including traffic, packaging, materials handling, warehousing, order entry, customer service, inventory control, etc.

Pick & Pack Picking of product from inventory and packing into shipment containers.

Pick by Line Picking for a group of customer orders on the basis of SKU and assembling into individual orders after the picking process is complete.

Pick Face The primary location in a warehouse at which order picking, of less than pallet loads, is undertaken.

Pick to Belt Picking by article where product is moved to the order assembly area by a moving belt running between the pick faces. (thus mechanising part of the picking process).

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Pick to LightSystem using a series of visual displays, typically a light and/or digital readout, to direct operators automatically to the appropriate pick faces and to indicate the quantity required.

Pick to Store Picking and Assembling orders store by store. This may be carried out for both direct delivery to store and delivery to another network location for cross docking.

Picking A process used to fulfil orders for quantities less than a full pallet.

Picking Area An area dedicated to the picking of customer orders.

Picking Profile The statistical summary for the characteristics of an SKU, order, destination or customer relating to the proportion picked.

Postponement The delay of final activities (i.e., assembly, production, packaging, etc.) until the latest possible time.

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Primary Distribution Distribution from a manufacturing point or central stock holding location to another stock holding location, usually an RDC.

Primary Transport A transport movement between network locations, for the deployment of stock, that has no customer order associated with. It may also be referred to as 'Transport 1' in some markets.

Process A group of interrelated activities which, together, achieves a desired outcome, product or service while consuming resources.

Product Code See SKU.

Product Group Homogeneous family of products. See also Category.

Product Life Cycle

Product Life Cycle A cycle that products experience throughout their life that consists of a conception stage, growth, maturity and decline; each part of the cycle calls for different materials management and distribution strategies; product life cycle can be as short as a few months as with fad items or as long as several decades.

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Product Profile The statistical analysis of the selling patterns of a products or group of products into summary format for the purpose planning and costing.

Product Recall / Withdrawal

Removal and segregation, from circulation, of a quantity of product because it represents a health hazard, violates official regulations or does not meet quality standards.

Production Lead Time The time between commencing production of an item and its completion, ready for sale.

Productivity A measure of the performance of a process expressed as a unit of output per unit of labour input. For example; Cases picked per man hour.

Project Charter Document defining an agreement of what the project is committed, the overall budget, time constraints, resources, and standards within which it must be completed.

Pull System A system where goods and materials are effectively pulled through the Supply Chain in response to goods being purchased by the consumer.

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Push Back Racking A racking system where pallets are stored, 2, 3 or 4 deep, on front to back extendable rails. This allows the rear pallets to move forward under gravity to occupy the front location.

Push System A system where goods are produced and pushed into the Supply Chain in response to demand estimates but in quantities that minimise production costs.

Put Away The activity for placing pallets in to, usually predetermined, storage locations following receipt, usually through 'Goods Inward'.

Quality ControlThe aggregate of activities performed to make sure that the quality of products manufactured and released corresponds in all respects to the specifications that has been set for them.

Radial Delivery See Route Delivery.

Reach Truck A Fork Lift Truck designed to operate in narrow aisles, where the mast is mounted behind the front wheels to reduce its turning circle when carrying a pallet.

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Replenishment The process of moving inventory of an item from a reserve storage location to the primary picking area.

Residual Stock The stock remaining, usually from a bulk consignment to a picking centre, after the customer orders have been satisfied.

Resource managementWhere this is a system function, e.g. in a warehouse management system, it applies to the managed allocation of resources (labour, equipment and services) in the execution of tasks.

Retail Outlet Customer store, shop, supermarket, hypermarket, kiosk etc Also known as "shop" or "store".

Returnable Asset A reusable entity owned by a company, used for transport and storage of goods.

Rigid Vehicle A non-articulated goods vehicle, where the load carrying capacity is permanently attached.

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Road Train Term used in Australia for vehicles longer than 30m and combining a tractor and one or two trailers. (known as double road train or triple road train)

Roll Cage The lightweight metal cages on wheels that are a commonly used way of picking and moving stores orders through distribution centres to delivery at stores.

Route Delivery Delivery from a DC or TSP to customer delivery points.

Routine Maintenance Maintenance and repair activities carried out to set a routine.

Safety Stock Quantity of stock planned to be in inventory to protect against fluctuations in demand or supply.

Satellite Tracking SystemThe tracking of vehicles and trailers using signals transmitted via satellite receivers, which can pinpoint the location and re-transmit the details to a central control location. This allows the precise locating of equipment and loads.

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Secondary Distribution See Route Delivery.

Secondary TransportThe transport associated with the movement of finished goods to a customer delivery point, usually associated with a customer order. It may be referred to as 'Transport 2' in some markets.

Selective Pallet RackingThe basic racking format for the storage of pallets. Pallets are stored on cross beams in back-to-back racks, single deep, separated by aisles.. This format allows for the reliable identification and retrieval of any pallet without impact on another.

Service Reference A number assigned by the service provider to identify the recipient of services in the context of a service relationship.

Shared User DistributionDistribution services that are provided for more than one client, from a common facility. The main advantage of this type of operation is that it achieves critical mass and lower cost than would otherwise be unattainable with a single user.

Shelf Stable ProductA product that can be stored at ambient temperature for extended periods of time, usually measured in months, without the product quality deteriorating beyond an acceptable level. For example; Pasta, Coffee, Water etc.

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Shelf-Life The length of time after production or filling for which the specific properties of the product can be guaranteed under defined storage conditions.

Shelf-space Management an associated discipline of merchandising that works to maximise the financial benefit to the store of well managed shelf space.

Shipper The party which tenders goods for transportation.

Shipping Pallet Pallet designed to be used for a single one-way trip from shipper to receiver; it is then disposed; see Expendable Pallet.

Shrinkage Stock loss that cannot be accounted for and may be the result of theft, spoilage, wastage or damage.

Stack ability Maximum number of pallets which can be stacked upon each other for a given article.

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Stacker Cranes The Mechanical Handling Equipment used in conjunction with very narrow aisles and racking higher than ~9m for the put away and retrieval of pallets to/from racking.

Stock Availability A term that refers to the amount of stock available for ordering. Checking stock availability is the verification of the available stock in the stock allocation process.

Stock Cover The stock cover expresses how many periods of future demand are covered by the available stock on hand.

Stock Policy

A stock policy determines the rules according to which stocks of a given product should be replenished in order to achieve, in average, a desired target customer service level. The stock policy is normally defined with minimum and maximum coverage of future demand.

Store See Retail Outlet

Store ReturnsProducts returned from a store because they are deemed unsuitable for sale, damaged, not ordered etc. Store returns may also be the waste packaging returned to the RDC for recycling, the crates, roll cages and pallets returned for reuse.

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Supply Chain

Company Supply Chain to Customers & Consumers represents the physical, transactional, and information networks that integrate the movement of materials, funds, and related information from the acquisition of raw materials to delivery of finished products to the end user. It links all internal Company functions & external trading partners with agreed levels of service & cost to serve; quality and safety are not negotiable

Supply WarehouseA warehouse that stores raw materials or components. Goods from different suppliers are picked, sorted, staged, or sequenced at the warehouse to assemble plant orders. Example: Joint warehouse for packaging materials supplied to different plants.

Symbol

The combination of symbol characters and features required by a particular symbology, including Quiet Zone, start and stop characters, data characters and other auxiliary patterns, which together form a complete scannable entity; an instance of a symbology and a data structure.

Symbol CharacterA group of bars and spaces in a symbol which is decoded as a single unit. It may represent an individual digit, letter, punctuation mark, control indicator, or even multiple data characters.

Tariff A tax assessed by a government on goods entering or leaving a country. The term is also used in transportation in reference to the fees and rules applied by a carrier for its services.

Task InterleavingTerm used in describing functionality of warehouse management systems to mix tasks to reduce travel time. Sending a forklift driver to put away a pallet on his way to his next pick is an example of task interleaving.

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Task Management System function, e.g. in a Warehouse Management System , controlling the task execution.

Tele sales Active or passive acquisition of orders by direct telephone contact with the customer.

Temperature Controlled Any distribution service requiring product to be stored and delivered at a controlled temperature.

ThroughputA measure of [warehousing] input/output volume, either by weight or number of units. It is also the total amount of units received plus the total amount of units shipped, divided by two, at constant stock.

Ti-Hi A term applied to a pallet defining the number of cases. Ti is the number of cases per layer and Hi the number of layers per pallet.

Time-definite Services Delivery is guaranteed on a specific day or at a certain time of the day.

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Tipping A term used to describe the unloading of a trailer. The products are not in fact tipped out of the trailer.

TraceabilityThe ability to trace the history, application or location of an item or activity (or similar items or activities) by means of recorded information. Traceability includes internal tracking inside our company Supply Chain, as well as upstream and downstream traceability.

Tractor Trailer Tractor and semi trailer combination.

Tractor UnitTruck designed primarily to pull a semi trailer by means of a fifth wheel mounted over the rear axle(s). Sometimes called a truck tractor or highway tractor to differentiate from it from a farm tractor.

Trade ItemAny item (product or service) upon which there is a need to retrieve pre-defined information and that may be priced or ordered or invoiced at any point in any Supply Chain.

Traded Unit see SKU.

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Trading Partner A party to transactions in the Supply Chain, such as a supplier (seller) or a customer (buyer).

Traffic Management The management and controlling of transportation modes, carriers and services.

Transaction A balanced set of asset movement records, such as a stock reduction balanced by the corresponding receivables during an invoicing transaction.

TranshipmentA number of orders consolidated and batch picked, taken to another location, split into customer orders at this location, where applicable consolidated with other shipments onto one vehicle.

Transit Time The time from despatch of a transport until its arrival at destination.

TripThe period during which a vehicle is continuously travelling from its point of origin to its destination. The vehicle may stop for short periods during the trip without causing discontinuation of the trip if no change occurs in the loaded weight.

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Trunking The bulk transport element between distribution centres and factories.

Turn Around Time The time taken to unload and load a vehicle, container or trailer, making it ready for it's next movement.

UCC/EAN-128 Bar Code Symbol

A subset of the Code 128 Bar Code Symbol that is used exclusively for UCC.EAN defined data structures. UCC/EAN-128 Symbols can be printed as stand-alone linear symbols of as a composite symbol with an accompanying 2D Composite Component (TM) printed directly above the UCC/EAN-128 linear component.

UIC International Railway Union, the controlling body for the EPAL trademark and the Euro-Pallet standard.

Unit Load Assembly of goods on a pallet for handling, moving, storing and stacking as a single entity.

Unloading Time Time taken to check and unload a vehicle, container or trailer and prepare the contents for put away or onward movement.

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Use by date The date after which the consumption of highly perishable foodstuff constitutes an immediate danger to human health. (see also Best Before Date)

Value Added Increased or improved value, worth, functionality or usefulness.

Van delivery Delivery of customer orders from a secondary distribution vehicle.

Van Sales

A traditional method of sales and secondary distribution, whereby inventory is sold directly from a van/truck to a customer. All excess inventory is returned to stock at the conclusion of the selling period. The sale is captured by either invoice or cash collection at the time of the sale taking place.

Variable Cost Costs which vary more or less proportionally to the sales volume.

Variable Measure Trade Item

An item always produced in the same pre-defined version (type, design, packaging, etc.) that may be sold at any point in the Supply Chain, which either may vary in weight/size by its nature or which may be traded without a pre-defined weight/size/length.

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Visibility The ability to access or view pertinent data or information as it relates to logistics and the Supply Chain.

WholesalerA customer who buys Company products and in turn provides a sales and distribution service to his customers, without a formal agreement with Company. A wholesaler is a shared user operation where title of the goods does not remain with Company.

Wide Aisle The term applied to aisles wider than 3.0m where counterbalance fork lift trucks can be operated.

Win-Win Scenario Is the principle where two parties achieve mutual benefit from a proposal.

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supply chain acronyms and definitions

Documents

systeme anwendungen produkte

fork lift trucks

fork lift truck

remain practically unchanged

uniform code council

technical instruction document

foreign trade zone

technical document classification