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| broad set of activities carried out by orgs to analyze sourcing opportunities, develop sourcing strategies, select suppliers, and carry out all the activities required to procure goods/services |
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| purchased cost of goods from outside suppliers |
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| balance sheet item that shows the amount a company paid for the inventory it has on hand at a particular point in time |
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| measure of financial performance, earnings / total assets, higher the better |
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| term used to describe the effect on $1 in cost savings increasing pretax profits by $1 and the $1 increase in sales increasing pretax profits only by $1 multiplied by the pretax profit margin |
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| application of quantitative techniques to purchasing data in an effort to better understand spending patterns and identify opportunities for improvement |
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| profiles the major forces and trends that are impacting an industry (pricing, competition, regulatory forces, substitution, tech changes, and supply/demand trends) |
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| spending that occurs when internal customers purchase directly from nonqualified suppliers and bypass established purchasing procedures |
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| use of resources within the firm to provide goods/service. "make" |
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| use of supply chain partners to provide goods/service. "buy" |
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| high-lvl, often strategic, decision regarding which products/services will be provided internally and which will be provided externally |
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| organizational strengths or abilities, developed over a long period, that customers find valuable and competitors find difficult or impossible to copy |
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| process by which a firm seeks to identify and quantify all of the major costs associated with various sourcing options |
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| costs tied directly to the level of operations or supply chain activities, such as the production of a good or transportation |
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| costs that are not tied directly to the level of operations or supply chain activities |
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| structured approach used by decision makers to develop a sourcing strategy for a product/service, based on the value potential and the relative complexity or risk represented by a sourcing opportunity |
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| electronic data interchange |
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| info technology that allows supply chain partners to transfer data electronically between their info systems |
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| supplier that has demonstrated its performance capabilities via previous purchase contracts and therefore receives preference during the supplier selection |
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| inquiry to a potential supplier about that supplier's products/services for potential use in the biz. inquiry can provide certain biz requirements or be a more exploratory nature |
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| multicriteria decision model |
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| models that allow decision makers to evaluate various alternatives across multiple decision criteria |
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| request for quotation (RFQ) |
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| formal request for the suppliers to prepare bid, based on the terms and conditions set by the buyers |
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| performing activities in a manner that meet the needs of the present without compromising the ability of future generations to meet their needs |
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| part of scm that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services and related info between the point of consumption in order to meet customers' requirements |
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| a shipment made directly, w/ no additional stops, changing of trucks, or loading of additional cargo |
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| less than truckload shipment |
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| smaller shipment, often combined with other loads to reduce costs and improve truck efficiencies |
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| transportation solution that seeks to exploit the strengths of multiple trans modes via physical, info, and monetary flows that are as seamless as possible |
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| specialized rail car the size of a standard truck trailer that can be quickly switched from rail to ground trans |
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| any operation that stores, repackages, stages, sorts, or centralize goods. orgs use this to reduce trans costs, improve operational flexibility, shorten customer lead times, and lower inventory costs |
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| consolidation warehousing |
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| form of warehousing that pulls together shipments from a number of sources in the same geographic area and combines them into larger and hence more economical shipping loads |
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| fomr of warehousing in which large incoming shipments are received and then broken down into smaller outgoing shipments to demand points in a geographic area. cross docking combines the economies of large incoming shipments with flexibility of smaller local shipments |
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| specialized form of cross docking in which the incoming shipments are from a single source or manufacturer |
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| form of warehousing in which strategically placed hubs are used as sorting or transfer facilities. the hubs are typically located at convenient, high traffic locations. spokes refer to the routes serving the destinations associated w/ the hubs |
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| type of truck trailer that is half the size of a regular one |
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| fomr of warehousing that combines classic warehouse operations with light manufacturing and packaging duties to allow firms to put off final assembly or packaging of goods until the last possible moment |
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| form of warehousing in which a wide array of goods is held close to the source of demand in order to assure short customer lead times |
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| form of warehousing that attempts to position seasonal goods close to the marketplace. at the end of each season, the goods are either liquidated or moved back to amore centralized location |
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| system that includes the equipment and procedures needed to move goods within a facility, between a facility and transportation mode, and between different trans modes |
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| the way goods and materials are packaged in order to facilitate physical, informational, and monetary flows via the supply chain |
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| functional strategy which ensures that an orgs logistics choices - transportation, warehousing, info systems, and even form of ownership - are consistent with its overall biz strategy and support the performance dimensions that targeted customers value |
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| trans service provider that handles shipments on a case by case basis, w/o the need for long term agreements or contracts |
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| trans service provider that handles shipments for other firms based on long term agreements or contracts |
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| third party logistics provider |
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| service firm that handles all of the logistics requirements for other companies |
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| 100%(total orders - orders w/ defect / total orders) |
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| cost of a product plus all costs driven by logistic activities |
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| an agent who serves as an intermediary between an org shipping a product and the actual carrier, typically on international shipments |
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| agent who handles customs requirements on behalf of another firm |
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| complete supply chain dedicated to the reverse flow of products and materials for the purpose of returns, repair, remanufacture, and/or recycling |
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| weighted ce3nter of gravity method |
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| attempts to identify the best location for a single asset given multiple demand points |
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| set of interrelated components that collect/retrieve, process, store, and distribute info to support decision making, coordination, and control |
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| customer relationship mgmt |
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| term broadly referring to planning and control activities and info systems that link a firm with its downstream customers |
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| supplier relationship mgmt |
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| term broadly referring to planning and control activities and info systems that link a firm with its upstream suppliers |
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| term that refers to the info flows between higher and lower levels of planning and control systems within an org |
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| enterprise resource planning systems |
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| large, integrated, computer based biz transaction processing and reporting system. pull together all of the classic biz functions into a single integrated package that uses a common database |
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| computer based info systems that allows users to manipulate and present data in a manner that aids higher level decision making |
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| network design applications |
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| logistics info systems that address such long term strategic questions as facility location and sizing, as well as transportation networks. these applications often make use of simulation and optimization modeling |
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| warehouse and transportation systems |
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| logistics info systems that support tactical planning efforts by allocating fixed logistics capacity in the best possible way, given biz requirements |
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| warehouse mgmt. transportation execution systems |
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| logistics info systems that initiate and control the movement of materials between supply chain partners |
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| biz process modeling tools |
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| software tools that aid biz teams in the analysis, modeling, and redesign of biz processes |
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| biz process mgmt. systems products |
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| software tools that allow analysts to model processes and then automate the execution of the process at run time |
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| model for enabling ubiquitous, convenient, on demand network access to a shared pool of configurable computing resources that can be rapidly provisioned and released with minimal mgmt. effort or service provider interaction |
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| computer aided design system |
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| info system that allows engineers to develop, modify, share, and even test designs in a virtual world. help orgs avoid the time and expense of paper-based drawings and physical prototypes |
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| computer aided design/manufacturing systems |
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| designs are translated into machine instructions, which are then fed automatically into computer controlled manufacturing equipment |
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| design for manufacturability |
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| systematic consideration of manufacturing issues in the design and development process, facilitating the fabrication of the product's components and their assembly into the overall product |
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| planned elimination of superficial, accidental, and deliberate differences between similar parts in the interest of reducing part and supplier proliferation |
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| product architecture in which each functional element maps into its own physical chunk. different chunks perform different functions. the interactions between chunks are minimal, and they are generally well defined |
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| design for maintainability |
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| systematic consideration of maintainability issues over a products projected life cycle in the design and development process |
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| approach to product and process design which seeks to ensure that the org is capable of providing products or services that meet 6 sigma quality levels |
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| design for the environment |
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| approach to new product design that addresses environmental, safety, and health issues over the product's projected life cycle in the design and development process |
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