Global Supply Chain Management
Expert-defined terms from the Professional Certificate in Business Calculations in Supply Chain Management course at Greenwich School of Business and Finance. Free to read, free to share, paired with a professional course.
A2A stands for Anywhere to Anywhere , a type of delivery service th… #
Related terms include door-to-door delivery and point-to-point transportation. A2A is commonly used in e-commerce and retail industries, where customers expect fast and flexible delivery options. For example, an online retailer may offer A2A delivery to customers, allowing them to receive their purchases at any location, whether it's their home, office, or a designated pickup point.
ABC Analysis is a method used in inventory management to categorize items based… #
The analysis involves dividing inventory into three categories: A (high-value items), B (medium-value items), and C (low-value items). Related terms include inventory management and supply chain optimization. ABC Analysis is used to prioritize inventory management efforts and optimize stock levels, reducing waste and improving efficiency. For instance, a company may use ABC Analysis to identify its most valuable inventory items and implement a just-in-time inventory system to minimize stockouts and overstocking.
Active Supply Chain Management refers to the proactive mana… #
Related terms include supply chain visibility and real-time monitoring. Active Supply Chain Management involves using data analytics and other tools to anticipate and respond to changes in the supply chain, reducing the risk of disruptions and improving overall performance. For example, a company may use real-time monitoring to track inventory levels and shipping schedules, allowing it to quickly respond to changes in demand or supply.
Air Freight refers to the transportation of goods by air , often us… #
Related terms include air cargo and express shipping. Air Freight is commonly used in industries such as electronics, pharmaceuticals, and perishable goods, where speed and reliability are critical. For instance, a company may use air freight to transport high-value electronics from a manufacturing facility to a distribution center, ensuring rapid delivery and minimizing the risk of damage or loss.
APICS stands for American Production and Inventory Contr… #
Related terms include supply chain certification and operations management. APICS offers a range of certifications, including the Certified Supply Chain Professional (CSCP) and the Certified in Production and Inventory Management (CPIM) designations. For example, a supply chain professional may obtain APICS certification to demonstrate their expertise and knowledge in supply chain management, enhancing their career prospects and professional development.
Asset Management refers to the strategic management of physical… #
Related terms include asset utilization and maintenance scheduling. Asset Management involves optimizing the use and maintenance of physical assets to minimize costs and maximize efficiency. For instance, a company may use asset management software to track the location and condition of its vehicles, scheduling maintenance and repairs to minimize downtime and extend the life of the assets.
Backhaul refers to the return trip of a vehicle or ship<… #
Related terms include backhaul management and reverse logistics. Backhaul can be used to transport goods from a delivery location back to a warehouse or distribution center, reducing the need for empty vehicles and minimizing waste. For example, a company may use backhaul to transport returned goods from a retail store back to a distribution center, where they can be repaired, refurbished, or resold.
Bill of Lading is a document that outlines the details of a… #
Related terms include shipping document and freight invoice. The Bill of Lading serves as a contract between the shipper and the carrier, providing proof of delivery and payment. For instance, a company may use a Bill of Lading to verify the receipt of goods at a warehouse or distribution center, ensuring that the correct goods were delivered and that payment is made to the carrier.
Breakbulk refers to the shipment of goods in individual units</… #
Related terms include breakbulk shipping and less-than-container load (LTL) shipping. Breakbulk shipping is often used for oversized or heavy goods that cannot be transported in containers. For example, a company may use breakbulk shipping to transport construction equipment or machinery from a manufacturing facility to a job site.
Brokerage refers to the service of arranging transportation … #
Related terms include freight brokerage and third-party logistics (3PL). Brokerage services can include finding carriers, negotiating rates, and managing shipments. For instance, a company may use a brokerage service to arrange transportation for a shipment of goods from a supplier to a customer, ensuring that the goods are delivered on time and at a competitive rate.
Capacity Planning refers to the process of determining the… #
Related terms include capacity management and resource allocation. Capacity Planning involves analyzing demand and supply to determine the optimal level of production or service capacity, minimizing waste and maximizing efficiency. For example, a company may use capacity planning to determine the optimal number of production lines or staff to meet changing demand patterns.
Cargo Insurance refers to insurance that covers losses</… #
Related terms include marine insurance and freight insurance. Cargo insurance can provide financial protection against losses or damage to goods during transportation, minimizing the risk of financial loss. For instance, a company may purchase cargo insurance to cover the value of goods being transported by sea or air, ensuring that they are protected against loss or damage.
Certified Supply Chain Professional (CSCP) is a certific… #
Related terms include supply chain certification and operations management. The CSCP certification demonstrates a professional's knowledge and skills in supply chain management, including supply chain design, implementation, and management. For example, a supply chain professional may obtain CSCP certification to demonstrate their expertise and knowledge in supply chain management, enhancing their career prospects and professional development.
Cloud Computing refers to the use of remote computing</b… #
Related terms include cloud storage and software-as-a-service (SaaS). Cloud computing can provide scalable and flexible computing resources, reducing the need for on-premise infrastructure and minimizing costs. For instance, a company may use cloud computing to host its supply chain management software, providing access to real-time data and analytics from anywhere.
Cold Chain refers to the transportation and storage of t… #
Related terms include cold storage and refrigerated transportation. Cold chain logistics requires specialized equipment and handling procedures to maintain the required temperature range, ensuring the quality and safety of the goods. For example, a company may use cold chain logistics to transport perishable goods, such as vaccines or frozen foods, from a manufacturing facility to a distribution center.
Containerization refers to the use of intermodal containers … #
Related terms include container shipping and intermodal transportation. Containerization can provide a secure and efficient way to transport goods, reducing the risk of damage or loss. For instance, a company may use containerization to transport goods from a manufacturing facility to a distribution center, where they can be easily transferred to other modes of transportation.
Contract Logistics refers to the outsourcing of logistics <… #
Related terms include third-party logistics (3PL) and outsourced logistics. Contract logistics can provide a flexible and cost-effective way to manage logistics operations, allowing companies to focus on their core business. For example, a company may outsource its logistics operations to a third-party provider, which can manage transportation, warehousing, and distribution on its behalf.
Cross #
Docking refers to the practice of unloading goods from one vehicle and loading them onto another vehicle without storing them in a warehouse. Related terms include cross-dock facility and transload facility. Cross-docking can provide a fast and efficient way to manage goods, reducing the need for storage and minimizing handling costs. For instance, a company may use cross-docking to transfer goods from a truck to a railcar, or from a ship to a truck, without storing them in a warehouse.
Customs Brokerage refers to the service of assisting imp… #
Related terms include customs clearance and trade compliance. Customs brokerage can provide expertise and guidance on customs regulations and procedures, ensuring that goods are cleared and compliant with relevant laws and regulations. For example, a company may use a customs brokerage service to clear goods through customs, ensuring that all necessary documentation and duties are paid.
Demand Planning refers to the process of forecasting and <b… #
Related terms include demand forecasting and sales and operations planning (S&OP). Demand planning involves analyzing historical data and market trends to predict future demand, ensuring that the company can meet customer needs and minimize waste. For instance, a company may use demand planning to forecast sales of a new product, allowing it to adjust production and inventory levels accordingly.
Distribution Center refers to a facility that stores and <b… #
Related terms include warehouse and fulfillment center. Distribution centers can provide a strategic location for storing and distributing goods, allowing companies to respond quickly to changing demand patterns. For example, a company may use a distribution center to store inventory and fulfill customer orders, providing fast and efficient delivery to customers.
Electronic Data Interchange (EDI) refers to the electronic … #
Related terms include electronic commerce and business-to-business (B2B) integration. EDI can provide a fast and efficient way to exchange business documents, such as purchase orders and invoices, reducing the need for paper-based documentation and minimizing errors. For instance, a company may use EDI to exchange documents with its suppliers and customers, streamlining its supply chain operations and improving communication.
Export Management refers to the process of managing the … #
Related terms include international trade and global logistics. Export management involves ensuring that goods are compliant with relevant laws and regulations, and that all necessary documentation and duties are paid. For example, a company may use export management to ensure that its goods are properly cleared and compliant with customs regulations, minimizing the risk of delays or penalties.
Freight Audit refers to the process of reviewing and ver… #
Related terms include freight audit and transportation cost management. Freight audit can provide a way to ensure that freight bills are accurate and that payments are made correctly, minimizing the risk of overpayment or error. For instance, a company may use freight audit to review its freight bills and identify any errors or discrepancies, ensuring that it is paying the correct amount for its transportation services.
Global Supply Chain refers to the network of organizatio… #
Related terms include international supply chain and global logistics. Global supply chain management involves coordinating and managing supply chain operations across different countries and regions, ensuring that goods are delivered quickly and efficiently to customers. For example, a company may use global supply chain management to coordinate the production and delivery of goods from suppliers in different countries, ensuring that it can respond quickly to changing demand patterns.
Inbound Logistics refers to the management of goods and … #
Related terms include inbound shipping and receipt and inspection. Inbound logistics involves managing the receipt, inspection, and storage of goods and materials, ensuring that they are handled and stored properly. For instance, a company may use inbound logistics to manage the receipt and inspection of goods from its suppliers, ensuring that they meet quality and safety standards.
Inventory Management refers to the process of managing and… #
Related terms include inventory control and stock management. Inventory management involves analyzing demand and supply to determine the optimal level of inventory, minimizing waste and maximizing efficiency. For example, a company may use inventory management to determine the optimal level of inventory for a particular product, ensuring that it can meet customer demand without overstocking or understocking.
Just #
in-Time (JIT) refers to a production and inventory management system that aims to produce and deliver products just in time to meet customer demand. Related terms include just-in-time production and lean manufacturing. JIT involves producing and delivering products in small batches, minimizing inventory levels and reducing waste. For instance, a company may use JIT to produce and deliver products to its customers, ensuring that it can respond quickly to changing demand patterns.
Lead Time refers to the time it takes for a product … #
Related terms include lead time reduction and supply chain optimization. Lead time can have a significant impact on a company's ability to respond to changing demand patterns, and reducing lead time can help to improve supply chain efficiency. For example, a company may use lead time reduction strategies to minimize the time it takes to produce and deliver products to its customers.
Less #
than-Container Load (LTL) refers to the shipment of goods in quantities that are less than a full container load. Related terms include less-than-truckload (LTL) shipping and partial load shipping. LTL shipping can provide a cost-effective way to transport small quantities of goods, minimizing the need for full container loads. For instance, a company may use LTL shipping to transport small quantities of goods from a supplier to a distribution center.
Logistics Service Provider (LSP) refers to a company that <… #
Related terms include third-party logistics (3PL) and outsourced logistics. LSPs can provide a range of logistics services, including transportation, warehousing, and distribution. For example, a company may use an LSP to manage its logistics operations, allowing it to focus on its core business.
Material Requirements Planning (MRP) refers to a system use… #
Related terms include material requirements planning and production planning. MRP involves analyzing demand and supply to determine the optimal level of production, minimizing waste and maximizing efficiency. For instance, a company may use MRP to plan and manage the production of goods, ensuring that it can meet customer demand without overproducing or underproducing.
Ocean Freight refers to the transportation of goods by s… #
Related terms include ocean shipping and sea freight. Ocean freight can provide a cost-effective way to transport large quantities of goods over long distances, minimizing the need for air freight or other modes of transportation. For example, a company may use ocean freight to transport goods from a supplier in another country to a distribution center.
Outsourced Logistics refers to the practice of contracting … #
Related terms include third-party logistics (3PL) and contract logistics. Outsourced logistics can provide a flexible and cost-effective way to manage logistics operations, allowing companies to focus on their core business. For instance, a company may outsource its logistics operations to a third-party provider, which can manage transportation, warehousing, and distribution on its behalf.
Procurement refers to the process of acquiring goods and <b… #
Related terms include procurement management and sourcing. Procurement involves analyzing demand and supply to determine the optimal level of procurement, minimizing waste and maximizing efficiency. For example, a company may use procurement to acquire goods and services from suppliers, ensuring that it can meet customer demand without overpaying or underpaying.
Quality Control refers to the process of ensuring that p… #
Related terms include quality assurance and quality management. Quality control involves inspecting and testing products or services to ensure that they meet quality and safety standards, minimizing the risk of defects or errors. For instance, a company may use quality control to inspect and test its products, ensuring that they meet customer expectations and regulatory requirements.
Rail Freight refers to the transportation of goods by ra… #
Related terms include rail shipping and intermodal transportation. Rail freight can provide a cost-effective way to transport large quantities of goods over long distances, minimizing the need for trucking or other modes of transportation. For example, a company may use rail freight to transport goods from a supplier to a distribution center.
Reverse Logistics refers to the process of managing the … #
Related terms include reverse logistics management and returns management. Reverse logistics involves managing the return of products or goods, minimizing waste and maximizing efficiency. For instance, a company may use reverse logistics to manage the return of defective or unwanted products, ensuring that they are properly disposed of or refurbished.
Shipper refers to the company or individual that ships g… #
Related terms include shipper and consignor. The shipper is responsible for ensuring that goods are properly packaged and labeled, and that all necessary documentation and duties are paid. For example, a company may use a shipper to transport goods from a supplier to a distribution center.
Shipping Container refers to a standardized container used… #
Related terms include shipping container and intermodal container. Shipping containers can provide a secure and efficient way to transport goods, minimizing the risk of damage or loss. For instance, a company may use shipping containers to transport goods from a supplier to a distribution center.
Supply Chain Management refers to the coordination and m… #
Related terms include supply chain optimization and logistics management. Supply chain management involves analyzing demand and supply to determine the optimal level of production and delivery, minimizing waste and maximizing efficiency. For example, a company may use supply chain management to coordinate the production and delivery of goods from suppliers to customers.
Supply Chain Visibility refers to the ability to track</… #
Related terms include supply chain visibility and real-time monitoring. Supply chain visibility can provide a way to track and monitor supply chain operations, minimizing the risk of disruptions or delays. For instance, a company may use supply chain visibility to track the location and status of shipments, ensuring that it can respond quickly to changes in the supply chain.
Third #
Party Logistics (3PL) refers to the practice of contracting with a third-party provider to manage logistics operations. Related terms include outsourced logistics and contract logistics. 3PL can provide a flexible and cost-effective way to manage logistics operations, allowing companies to focus on their core business. For example, a company may use 3PL to manage its transportation, warehousing, and distribution operations.
Transportation Management refers to the process of planning … #
Related terms include transportation management and logistics management. Transportation management involves analyzing demand and supply to determine the optimal mode of transportation, minimizing waste and maximizing efficiency. For instance, a company may use transportation management to plan and execute the movement of goods from a supplier to a distribution center.
Vendor #
Managed Inventory (VMI) refers to the practice of managing inventory on behalf of a customer. Related terms include vendor-managed inventory and consignment inventory. VMI involves managing inventory levels and replenishing stock as needed, minimizing waste and maximizing efficiency. For example, a company may use VMI to manage inventory levels for a customer, ensuring that the customer has the right amount of stock on hand to meet demand.
Warehouse Management refers to the process of managing and… #
Related terms include warehouse management and inventory management. Warehouse management involves analyzing demand and supply to determine the optimal level of inventory, minimizing waste and maximizing efficiency. For instance, a company may use warehouse management to manage the receipt, storage, and shipping of goods, ensuring that it can respond quickly to changing demand patterns.
Wholesale refers to the sale of goods or products in lar… #
Related terms include wholesale distribution and business-to-business (B2B) sales. Wholesale involves selling goods or products in large quantities, often at a lower price than retail. For example, a company may use wholesale to sell goods or products to retailers, who then sell them to end customers.
Zero Inventory refers to a production and inventory mana… #
Related terms include just-in-time (JIT) production and lean manufacturing. Zero inventory involves producing and delivering products in small batches, minimizing inventory levels and reducing waste. For instance, a company may use zero inventory to produce and deliver products to its customers, ensuring that it can respond quickly to changing demand patterns.