Equip your business. The MRP system usually retains its ability to net against any occasional inventories of the item. 5-Point Annual Average: Method frequently used in PMG studies to establish a representative average for a one-year period. Picking: The operations involved in pulling products from storage areas to complete a customer order. Operating Ratio: A measure of operating efficiency defined as Operating expenses divided by the Operating revenues x 100. Localized Raw Material: A raw material found only in certain locations. Mileage Allowance: An allowance, based upon distance, that railroads give to shippers using private railcars. MRO: See Maintenance, Repair, and Operating Supplies (MRO). Activities may occur in a linked sequence and activity-to-activity assignments may exist. Build to Inventory: A "push" system of production and inventory management. Acknowledgement: A communication by a supplier to advise a purchaser that a purchase order has been received. Also see: 80/20 Rule. The message header segment also carries the message type code, which identifies the business transaction type. Order Entry and Maintenance: This includes costs associated with maintaining the customer database, credit check, accepting new orders, and adding them to the order system, as well as later order modifications. Insurance and Taxes: The cost of insuring inventories and taxes associated with the holding of inventory. Also, a model set of legal rules governing commercial transmissions, such as sales, contracts, bank deposits and collections, commercial paper, and letters or credit. Aggregate Forecast: An estimate of sales, oftentimes phased, for a grouping of products or product families produced by a facility or firm. ESI: See Early Supplier Involvement (ESI). Bulk Cargo: Unpacked dry cargo such as grain, iron ore or coal. Primarily used by Inland water carriers, basic barges have open tops, but there are covered barges for both dry and liquid cargoes. Collaborative Planning, Forecasting, and Replenishment (CPFR): (1) A collaboration process whereby supply chain trading partners can jointly plan key supply chain activities from production and delivery of raw materials, to production and delivery of final products to end customers. Once this planning phase is complete and the plans have been accepted as realistic and attainable, the execution processes come into play. : An identifier assigned to a container by a carrier. Compare the best Sales software of 2021 for your business. Obsolete Inventory: Inventory for which there is no forecast demand expected. CY/CY: See Container Yard to Container Yard (CY/CY). Web Browser: A client application that fetches and displays web pages and other World Wide Web resources to the user. DRP: See Distribution Requirements Planning (DRP). Bill of Resources: A listing of resources required by an activity. Value-Added Productivity Per Employee: Contribution made by employees to total product revenue minus the material purchases divided by total employment. Product Characteristics: All of the elements that define a product's character, such as size, shape, weight, etc. Also see: Sales and Operations Planning. Cargo: Merchandise carried by a means of transportation. An example is where a retail channel is in competition with a web-based channel set up by the company. Fulfillment includes order management, picking, packaging, and shipping. Direct Cost: A cost that can be directly traced to a cost object since a direct or repeatable cause-and-effect relationship exists. Freight forwarders provide the ability to respond quickly and efficiently to changing customer and consumer demands and international shipping (import/export) requirements. Total Productive Maintenance (TPM): Team-based maintenance process designed to maximize machine availability and performance and product quality. Basing-Point Pricing: A pricing system that includes a transportation cost from a particular city or town in a zone or region even though the shipment does not originate at the basing point. Warehouse Management System (WMS): The systems used in effectively managing warehouse business processes and direct warehouse activities, including receiving, putaway, picking, shipping, and inventory cycle counts. Bleeding Edge: An unproven process or technology so far ahead of its time that it may create a competitive disadvantage. National Industrial Transportation League: An association representing shippers' and receivers' interests in matters of transportation policy and regulation. Cartage: There are two definitions for this term: 1) charge for pick-up and delivery of goods 2) movement of goods locally (short distances). Break-Even Point: The level of production or the volume of sales at which operations are neither profitable nor unprofitable. Founded in 1984 Smart has helped thousands of customers plan for future demand utilizing industry-leading statistical analytics. Aggregate planning usually includes the development, analysis and maintenance of plans for total sales, total production, targeted inventory, and targeted inventory, and targeted customer backlog for families of products. In doing this, the equipment becomes capable of discriminating against unacceptable quality, and the automated process becomes more reliable. Product Description: The user's description of the product. APU: APUs automatically shut down the main locomotive engine idle while maintaining all vital main engine systems at greatly reduced fuel consumption. Sales and Operations Planning (S&OP): A strategic planning process that reconciles conflicting business objectives and plans future supply chain actions. In attributes sampling, the presence or absence of a characteristic is noted in each of the units inspected. It's what creates the "winner takes all" quality of most B2B hubs. World Trade Organization (WTO): An organization established on January 1, 1995 replacing the previous General Agreement on Tariffs and Trade GATT that forms the cornerstone of the world trading system. Free Alongside Ship: A term of sale indicating that the seller is liable for all changes and risks until the goods sold are delivered to the port on a dock that will be used by the vessel. Maritime Administration (Mar Ad): A U.S. government agency, not actively involved in vessel operation, that administers laws for maintenance of a merchant marine for the purposes of defense and commerce. Cage: (1) A secure enclosed area for storing highly valuable items (2) A pallet-sized platform with sides that can be secured to the tines of a forklift and in which a person may ride to inventory items stored well above the warehouse floor. Also see: Categorical Plan. 3D Loading: 3D loading is a method of space optimizing designed to help quickly and easily plan the best compact arrangement of any 3D rectangular object set (boxes) within one or more larger rectangular enclosures (containers). Budgets show the types, number of, and cost of resources that activities are expected to consume based on forecasted workloads. Market Dominance: The absence of effective competition for railroads from other carriers and modes for the traffic to which the rail rate applies. All Rights Throughput, inventory, and operating expense are examples. In Bond: Goods are held or transported In-Bond under customs control either until import duties or other charges are paid, or to avoid paying the duties or charges until a later date. United States Railway Association: The planning and funding agency for Conrail; created by the 3-R Act of 1973. Reasonable estimates founded in data were accepted as means to assess overall performance. Capacity Planning: Assuring that needed resources (e.g., manufacturing capacity, distribution center capacity, transportation vehicles, etc.) Production Planning and Scheduling: The systems that enable creation of detailed, optimized plans and schedules, taking into account the resource, material, and dependency constraints to meet the deadlines. Keep track of all aspects of Service Issues, from ticketing and technician routing to inventory control and vehicle maintenance. Freight Forwarder: An organization which provides logistics services as an intermediary between the shipper and the carrier, typically on international shipments. Unlike a UPC number, which only provides information specific to a group of products, the GTIN gives each product its own specific identifying number, giving greater accuracy in tracking. Surrogate [item] Driver: In ABC costing, a substitute for the ideal cost driver, but closely correlated to the ideal driver, where [item] is Resource, Activity, or Cost Object. This concept implies that since a past outlay is the same regardless of the alternative selected, it should not influence the choice between alternatives. Blanket Purchase Order: A long-term commitment to a supplier for material against which short-term releases will be generated to satisfy requirements. A geographical area with a rich history dating back to prehistoric times, Mexico became a country in 1821 after gaining independence from Spain at the end of the colonial period. Integrated Logistics: A comprehensive, system-wide view of the entire supply chain as a single process, from raw materials supply through finished goods distribution. Express: (1) Carrier payment to its customers when ships, rail cars, or trailers are unloaded or loaded in less than the time allowed by contract and returned to the carrier for use. Also see: Acceptance Sampling. Engineering Change: A revision to a drawing or design released by engineering to modify or correct a part. The freight rates that apply to all items in the class are called "class rates.". Manufacturer's Representative: One who sells goods for several firms but does not take title to them. EASA enables customers to blend the agility and flexibility of Excel, with the convenience and security of a low-code platform. General Order (GO): A customs term referring to a warehouse where merchandise not entered within five working days after the carrier's arrival is stored at the risk and expense of the importer. Artificial Intelligence: A field of research seeking to understand and computerize the human thought process. MAKE Cycle Time: The amount of time it takes to complete a business process. Full Truckload (FTL): Same as Full Containerload, but in reference to motor carriage instead of containers. Cross Docking: A distribution system in which merchandise received at the warehouse or distribution center is not put away, but instead is readied for shipment to retail stores. (2) A term used to describe the process of making (usually) significant and major revisions or modifications to business processes. Class I Carrier: A classification of regulated carriers based upon annual operating revenues -- motor carriers of property; $5 million; railroads; $50 million; motor carriers of passengers; $3 million. Also see: Return Material Authorization. This usually means making a payment for goods or transferring funds electronically. Confirming Order: A purchase order issued to a supplier listing the goods or services and terms of an order placed orally or otherwise before the usual purchase document. Agglomeration: A net advantage a company gains by sharing a common location with other companies. Upstream: Principal direction of movement for customer orders which originate at point of demand or use, as well as other flows, such as return product movements, payments for purchases, etc. Conveyor: A materials handling device that moves freight from one warehouse area to another. Transaction: A single completed transmission, e.g., transmission of an invoice over an EDI network. Sigma: A Greek letter commonly used to designate the standard deviation of a population. This practice can help assure contract compliance and facilitate automated payments (self billing). Bar Code Scanner: A device to read bar codes and communicate data to computer systems. Linking systems is key for e-business. Customization: Creating a product from existing components into an individual order. Return Product Authorization (RPA): Also called Return Material or Goods Authorization (RMA or RGA). Cost Variance: In cost accounting the difference between what has been budgeted for an activity and what it actually costs. On-Demand: Pertaining to work performed when demand is present. Includes all material that becomes obsolete while in a distribution channel. If there's an increase in production sales value with no change in labor costs, productivity has increased while unit cost has decreased. Export Management Company: A private firm that serves as the export department for several manufacturers, soliciting and transacting export business on behalf of its clients in return for a commission, salary, or a retainer plus commission. Also see: Indirect Cost. Valuation Charges: Transportation charges to shippers who declare a value of goods higher than the value of the carriers' limits of liability. Sunk Cost: 1) The unrecovered balance of an investment. A manifest usually covers an entire load regardless of whether the load is to be delivered to a single destination or many destinations. Keiretsu: A form of cooperative relationship among companies in Japan where the companies largely remain legally and economically independent, even though they work closely in various ways, such as sole sourcing and financial backing. Synonym: Finished Goods Inventory. American Waterway Operators: A domestic water carrier industry association representing barge operators on inland waterways. Fixed Overhead: Traditionally, all manufacturing costs, other than direct labor and direct materials, that continue even if products are not produced. Smart Inventory Planning & Optimization (IP&O) is the company’s next generation suite of native web applications, helping inventory carrying organizations reduce inventory, improve service levels and streamline Sales, Inventory and Operations Planning. Intermodal Marketing Company (IMC): An intermediary that sells intermodal services to shippers. Fully Allocated Cost: The variable cost associated with a particular output unit plus a common cost allocation. See also Delivery Order. Intercorporate hauling: A private carrier hauling a subsidiary's goods and charging the subsidiary a fee; this is legal if the subsidiary is wholly owned or if the private carrier has common carrier authority. ... KC Forwarding is on of the leading Forwarding Agent for Air Freight & Sea Freight and logistic company in Malaysia. Customer-related activity levels may include customer, market, channel, and project levels. Denied Party Listing (DPL): A list of organizations that is unauthorized to submit a bid for an activity or to receive a specific product. Although frequently stated in different terms (dollars versus units), these tactical plans should agree with each other and with the business plan. The importing country pledges to monitor the shipment and prevent its re-export, except in accordance with its own export control regulations. Configuration: The arrangement of components as specified to produce an assembly. Flow-Through Distribution: A process in a distribution center in which products from multiple locations are brought in to the D.C. and are re-sorted by delivery destination and shipped in the same day. Prepaid shipping charges may be added to the customer invoice, or the cost may be bundled into the pricing for the product. Co-Packer: A contract co-packer produces goods and/or services for other companies, usually under the other company's label or name. * Metrics that are aligned to strategy, and linked to the shop floor or line-level workers. who work in conjunction with one another to manufacture, distribute, and sell a specific product. Rate at which operations are neither profitable nor unprofitable ' interests in matters transportation... 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