Supply Chain Acronyms and Definitions

Supply Chain Glossary
Acronym Term Description
The prioritisation and ranking based on a given criteria. e.g.. volume, value, profitability,
ABC Classification
criticality etc.
A distribution company that offers transport, warehousing, inventory and information

Third Party Logistics
3PL systems management to companies in the Supply Chain. See also Third Party Distribution
(Service) Provider
Company.
A 4PL provider refers to a specialised organisation that manages and coordinates logistics
Fourth Party Logistics
4PL services on behalf of another company but that does not supply or operate its own assets
Provider
and resources.
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
ABC Activity Based Costing
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.
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
Activity Based more efficiently, eliminating the need to perform activities that do not add value for
ABM
Management 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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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
AGV Automatic Guided Vehicle
independent power source, usually following a predetermined path around the
warehouse.
A two-, three-, or four-digit prefix used within UCC/EAN-128 Symbols to define the meaning
AI Application Identifier
of information that follows.
AIM is the European Brands Association. It represents the branded goods industries in
Association des Industries Europe on key issues which affect the ability of brand manufacturers to design, distribute
AIM®
de Marque and market their brands. AIM’s membership groups 1800 companies of all sizes through
corporate members and national associations in 21 countries.
Advanced Planner and

APO Integrated system module from SAP covering Demand & Supply Planning.
Optimiser
The variant of selective pallet racking where the components are adjustable and can be
APR Adjustable Pallet Racking
reconfigured for different unit load dimensions.
Advanced Planning and Designation for demand and supply planning application modules, down to detailed
APS
Scheduling execution scheduling.
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ASN Advanced Shipping Notice See Dispatch Advice.
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
ATC Alternative Trade Channel
and consumption occasions. The list of Alternative Trade Channels will be different from
one market to the other.
The date of minimum durability until which a foodstuff retains its specific properties when
BBD Best Before Date
properly stored. (EU Official definition)
Business Planning &

BPCS Enterprise resource planning system from System Software Associates, Inc.
Control System
An operation run by a third party to sell goods on to businesses and consumers in small
C&C Cash & Carry
retail quantities. Unlike a wholesaler, buyers often collect the product themselves.
The CCS offers a way to measure the contribution of an individual customer or a channel to
Customer / Channel /
the companies overhead and profits. In order to be able to manage profitable customer /
CCS Sales Area Contribution
channel / sales area development we must be able to measure their performance by
Statement
considering the total cost of doing business with them.
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The term applied when physical payment for goods is made in exchange, at the time of
CDO Cash-On-Delivery
delivery.
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
CMI Co-Managed Inventory
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.
Technical instruction document concerning concepts and procedures related to quality

CP Control Procedures monitoring and control, distributed by Nestec, CT-AID. (available on the Corporate
Technical, Production and R&D intranet site)
Collaborative Planning,
CPFR is the sharing of forecasts and related business information among business partners
CPFR Forecasting and
in the Supply Chain to enable automatic product replenishment.
Replenishment
CRM Customer Relationship Management - a formal approach, often accompanied by

Customer Relationship
CRM computerised databases to ensure that all dealings with customers are efficiently
Management
managed.
A replenishment process which seeks to regularly 'top-up' customer RDCs, and stores
Continuous Replenishment
CRP directly by suppliers, using an automated ordering process, based on the sales history and
Planning
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.
Demand & Supply Supply Chain process with mission to ensure that stock of finished goods is available at
D&SP
Planning correct stock location to meet customer demand while optimising the resource utilisation.
A distribution network location (warehouse) where finished goods are stored and customer
DC Distribution Centre
orders are delivered from.
A service used on the Internet to help the network route information to the correct
DNS Domain Name Service
computers.
Supply Chain KPI measuring the absolute error of the demand plans and the bias on a
DPA Demand Plan Accuracy
monthly basis.
The function of determining time-phased requirements for inventory at distribution locations

Distribution Requirements
DRP and providing consolidated requirements to the production and materials planning
Planning
process.
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European Article International Article Numbering Association which changed it's identity to GS1 on 18 Feb
EAN
Numbering 2005.
Simple electronic tags that are either on or off. When an item is purchased or borrowed
Electronic Article
EAS legally, the tag is turned off. When someone passes a gate area holding an item with a tag
Surveillance
that has not been turned off, an alarm sounds.
Is concerned with transforming offline business processes into online processes through an
electronic or web-based approach to create sustainable competitive advantage and
E-business Electronic-business
operational efficiency across employees (B2E), partners, suppliers & customers (B2B) and
consumers (B2C).
Efficient Consumer An initiative by suppliers, distributors and retailers to co-operate on improving the Supply
ECR
Response Chain, through to the consumer.
The paperless exchange of business documents or information by electronic computer-to-

Electronic Data
EDI computer transfer without human intervention, based on agreed industry coding and
Interchange
message standards.
A computerized system that processes financial transactions and related information or

EFT Electronic Funds Transfer
performs the exchange of value between two parties.
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Event Management Collaboration platform based on the SAP-Project System module that supports the Event
EMS
System Management approach. (see Event Management)
An inventory model that determines how much to order by determining the amount that
EOQ Economic Order Quantity will meet customer service levels while minimising total ordering and inventory holding
costs.
European Pallet
EPAL Owners and authentication authority for the EPAL trademark. See also UIC.
Association
This coding scheme, developed by the Auto ID centre uniquely identifies an individual
EPC Electronic Product Code
item.
EPC Information Service EPCIS is a computer system that manages and delivers physical mark-up language (PLM)
EPCIS
(EPCIS) to information requesters.
The point at which sales activity is completed and recorded, traditionally the cash register,
EPoS Electronic Point of Sale
where the true real time sale of goods takes place.
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Enterprise Resource A business management system that integrates all facets of the business, including
ERP
Planning planning, manufacturing, sales, and marketing.
The method whereby the goods which have the shortest expiry date are delivered (sold)
FEFO First Expiry First Out
and/or consumed first. This is a Group standard rule for products with open date.
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
FIFO First In First Out
method whereby the goods which have been longest in stock are delivered (sold) and/or
consumed first.
A mechanical handling device used for retrieving and handling pallets within the
FLT Fork Lift Truck
environment of a warehouse, powered by gas or electricity.
Description of common high volume products such as food, hygiene product, or cleaning
Fast Moving Consumer
FMCG supplies. These would be products that the average consumer would frequently purchase
Goods
such as water, coffee, health & beauty.
INCOTERM between a buyer and a seller, which defines the transfer of risk, cost and
FOB Free on Board 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.
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
FTZ Foreign Trade Zone 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.
An initiative launched in October 1999 and created by manufacturers, retailers and

sponsors (Trade Industry Associations, regional ECR initiatives, VICS and standard bodies)
Global Commerce
GCI to improve the performance of the international Supply Chain for consumer goods through
Initiative
the collaborative development and endorsement of recommended voluntary standards
and best practices.
Technical instruction document concerning policies, concepts and systems and not
addressed to a specific audience, distributed by Nestec, CT-AID (available on the
GI General Instructions
Corporate Technical, Production and R&D intranet site). GIN, GIC, GIS in the old technical
document classification.
Global Individual Asset

GIAI Unique EAN.UCC System identification number for a physical entity of any characteristics.
Identifier
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Unique EAN.UCC System identification number for legal entities, functional entities, and
GLN Global Location Number
physical locations.
GPS Gross Proceeds of Sales
Satellite navigation system used for accurately pinpointing the location of receivers,
GPS Global Positioning System
frequently vehicle mounted. Used for vehicle tracking.
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,
GPU Global Positioning Unit
interstate highways, even exit information for the federal interstate highway system. The
GPU can locate services such as food, lodging and gas stations.
Global Returnable Asset Unique EAN.UCC System identification number for a reusable package or transport
GRAI
Identifier equipment of a certain value, such as a beer keg, gas cylinder, pallet, or crate.
Voluntary standards organization charged by the GS1 board with the management of the
GS1 Global Standards 1 EAN.UCC System and the Global Standard Management Process (GSMP). Previously known
as EAN International.
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A member of GS1 (former EAN International, UCC) that is responsible for administering the
GS1 Member
GS1 MOs EAN.UCC System in its country (or assigned area) and for managing the correct use of the
Organisations
EAN.UCC System by its member companies.
GS1 US Global Standards 1 See GS1. Previously known as Uniform Code Council. (UCC)
Global Service Relation Unique EAN.UCC System identification number used to identify the recipient of services in
GSRN
Number the context of a service relationship.
Is an RFID standard developed by the UCC and EAN international. The interface protocols
GTAG Global Tag developed by this project team are currently going through the process to become the
international standard.
The Global Trade Item Number is used for the unique identification of trade items world-
GTIN Global Trade Item Number 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.
A numerical name for something in the Supply Chain to provide unique identification for it.
ID Identification Number ID numbers are used to retrieve information previously exchanged between trading
partners and stored in their computer database files.
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Inter-Market Supply Group standard procedures based on the weekly /daily exchange of information directly
IMSP
Planning between the producing and receiving companies.
No. of Items counted and correct (within tolerance) x 100% divided by Total No. of Items
Inventory Record
IRA counted.
Accuracy
Also referred to as inventory accuracy.
A non-governmental organisation which mission is to promote the development of

International Organization
ISO standardisation and related activities in the world in view of facilitating the international
for Standardization
exchange of goods and services.
Interleaved 2 of 5 is a continuous, self checking symbology primarily used in industrial and

ITF Interleaved Two of Five
retail applications.
An inventory control system that manages the flow of material or products such that they
JIT Just-In-Time 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.
Key Performance Measures used to assess business performance in conjunction with defined business goals,
KPI
Indicators objectives and processes.
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Technical instruction document concerning validated, formal methods for testing product,
LI Laboratory Instruction
raw materials and packaging materials. (for laboratories or on line)
The method whereby the goods which have been shortest in stock are delivered (sold)
LIFO Last In First Out and/or consumed first. May be used in very specific situations, e.g. distribution channel
with very long delivery lead time compared to others.
A shipment in which the freight does not completely fill the trailer or container; or a
LTL Less Than Truckload particular consignor's freight when combined with others to produce a full truckload or full
container load.
LTT Logistics Trade Terms See distribution allowances.
The activity required in order to maintain distribution equipment in a condition that ensures
M&R Maintenance & Repair
safe, reliable and efficient operation.
Mechanical Handling Any equipment used to give mechanical advantage in the handling of product. Includes
MHE
Equipment pallet trucks, fork lift trucks, cranes etc.
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The activity to establish a feasible production plan ensuring the appropriate production
Master Production
MPS source and total level of stock for locally produced goods, in order to meet the demand
Scheduling
plan in the most cost-effective way.
Materials Requirements Activity of calculating time-phased requirements for materials based on bill of material
MRP
Planning data, inventory data and production schedule.
MRP II is a method for planning of all the resources of a manufacturing company. It is

Manufacturing Resource made up of a variety of functions, each linked together: business planning, production
MRP II
Planning planning, master production scheduling, material requirements planning, capacity
requirements planning and the execution systems for capacity and priority.
National Distribution A single distribution network location where the national finished goods stock for a
NDC
Centre business, or range of products, is stored and distributed from.
NPS Net Proceeds of Sales
A system for looking up unique EPC's and pointing computers to information about the item
ONS Object Name Service associated with the code. ONS is similar to the domain name system , which directs
computers to sites on the internet.
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A performance measure of compliance with a customer order. Delivering what was

OTDIF On Time Delivery In Full ordered, in the manner it was ordered, for the time it was ordered, in the place it was
required.
The document or signal that is sent when a delivery or shipment has been received and
POD Proof of Delivery
checked.
(or point of purchase). This can mean a retail shop, a checkout counter in a shop, or a
POS Point of Sales
variable location where a transaction occurs with the consumer (e.g. vending machine).
Is consumer purchase information transferred electronically from POS to a database to

POS data Point of Sales Data support analytical and strategic decision making by our Customers (i.e. Organized Trade)
and / or their suppliers.
A measure of the performance of a specific activity or process within the Supply Chain. For
Process Performance example cases picked per shift is a measurement of the picking activity within the
PPI
Indicator distribution operation. PPIs are more focussed on specific activities and process than KPIs
and tend to be used more routinely. (daily, weekly etc.)
All the planned and systematic activities, preventive measures and precautions taken to
QA Quality Assurance ensure that the predefined quality of a product or a service will be reached and
consistently maintained.
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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
QR Quick Response
manufacturing line to retail checkout counter. Distributors, carriers and suppliers act as
trading partners and focus on improving the total supply system.
Regional Distribution Distribution network location, with the role of a regional hub, where the finished goods
RDC
Centre stock for a geographical area is stored in limited quantity for onward distribution.
A method of identifying unique items using radio waves. The big advantage over bar code
Radio Frequency
RFID technology is that lasers must see a bar code to read it. Radio waves do not require direct
Identification
line-of-sight and can pass through materials, such as cardboard and plastic.
Wireless terminal for real-time and mobile data communication using radio frequency
RFT Radio Frequency Terminal connection via a radio controller integrated on the local area network. They can be
handheld or vehicle mounted terminals.
Additional packaging designed to facilitate self-service sales or to advertise and market

Reusable Secondary
RSP the product (e.g. crates and trays) that can be used more than once, however the reverse
Packaging
logistic flow must be ensured.
Reusable methods of moving products. Examples include wooden pallets, metal roll
RTI Returnable Transit Items
cages, plastic crates and plastic/metal dollies.
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Returnable Transit Packaging that can be returned to suppliers for re-use. Sometimes also referred to as
RTP
Packaging Reusable Secondary Packaging. (RSP)
Systeme Anwendungen Produkte or Systems Applications Products in data processing. SAP

Systeme Anwendungen
SAP is the world's largest inter-enterprise software company and the world's fourth-largest
Produkte
independent software supplier, overall. It was founded in Walldorf, Germany in 1972.
A system of building a store's replenishment order by using EPoS data to build a forecast of
SBO Sales Based Ordering future requirements. Stock levels, shelf fills and lead times can all be included in the order
generation calculation.
End to End Management of the flow of goods and services from the procurement of
Supply Chain primary raw and packaging materials to the delivery of finished products to the consumer.
SCM
Management 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.
The operating and performance standards agreed between two or more parties for the
SCS Supply Chain Standards
efficient management of the Supply Chain.
Also referred to as a Traded Unit. A uniquely identifiable product unit. One product may
SKU Stock Keeping Unit 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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A bi-lateral agreement between service user and service provider stating the level of
SLA Service Level Agreement
service to be provided and the dispute resolution procedures.
Serial Shipping Container The EAN·UCC number comprising 18 digits for identifying uniquely a logistic unit (e.g.
SSCC
Code pallet, container).
Total Delivered costs represent the financial scope of the Operation EXCELLENCE 2007
initiative.
TDC Total Delivered Costs 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
Technical instruction document that substitutes a letter, in order to have a Technical

TL Technical Letter
instruction identification for easy reference.
Technical instruction document concerning Engineering issues not related to specific

products or product groups, distributed by Nestec, CT-AID (available on the Corporate
TM Technical Manuals
Technical, Production and R&D intranet site). TMN, TMC, TMR, PI in the old technical
document classification.
An approach to business management that focuses on quality and typically has: a strong
TQM Total Quality Management customer orientation, total involvement, measurement systems, systematic support, and
continuous improvement.
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Distribution network location through which deliveries are made to customers from another
TSP Transshipment Point 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.
A bar coding and numbering system of North America developed in the late 1960's and
U.P.C. Universal Product Code 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.
Previously the Numbering Organisation in the USA to administer and manage the EAN·UCC
UCC Uniform Code Council
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.
United Nations/Electronic
Data Interchange For A set of internationally agreed standards, directories and guidelines for the electronic
UN / EDIFACT
Administration, Commerce interchange of data.
and Transport
Voluntary Interindustry A global organisation focused on the improvement of the flow of product and information
VICS
Commerce Standards throughout the entire Supply Chain in the retail industry.
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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
Vendor Managed
VMI cost-effective manner. The replenishment orders are based on the inventory data of the
Inventory
customer distribution centre (stock levels and withdrawals) and in line with the agreed
service levels.
Where the aisle width (~1.45m) allows only for forward and backward movement along the
VNA Very Narrow Aisle 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.
Warehouse Management System for the control of all the operations in a storage facility from receiving to shipping,
WMS
System often enhanced by tools permitting the optimisation of downstream transports
Extensible Mark-up A standard for flexible structuring of messages, designed particularly to overcome the
XML
Language 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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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
Cost of Distribution
the customer. It also includes cost of pallets, cost of the customer service function and
distribution common charges.
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.
Cost to Serve
In the CCS, this represents distribution expenses and allowances, selling expenses and
product customisation costs.
Costs, which remain practically unchanged over the calendar year when the volume of
Inventory Carring Costs
operations (sales) varies only within narrow limits. Beyond that, they change by steps.
Costs, which remain practically unchanged over the calendar year when the volume of
Fixed Costs
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.
The generic term applied to products stored and transported at ambient temperature,
Ambient requiring no specific temperature control equipment. Generally the temperature range is
between +5oC and +30oC.
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The Auto-ID Centre was industry funded program founded in October 1999 by the UCC,
Auto ID Centre 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.
The Average Inventory level over a period of time. ;maybe computed on a daily, weekly,
Average Inventory monthly, yearly or other period basis by averaging the opening and closing inventory
levels. (simple: 2 or weighted with time)
Product ordered but out of stock and promised to ship when the product becomes
Back Order
available.
Any return load taken after the main delivery has been made, not necessarily from the
Backhaul same warehouse. Term also used to designate pickups by customers at the supplier's
despatch location.
Electronic device to read bar codes and convert them into electrical signals
Bar Code Scanners
understandable by a computer device.
Number transformed into a meaningful series of dark lines and light spaces between them
Bar Codes 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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Picking, by article or order, where the orders for a specified time period are divided into
Batch Picking
batches that improves the overall order assembly performance.
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
Benchmarking
performance. Companies also benchmark internally by comparing present with past
performance.
Also known as competitive benchmarking, the methodology that determines state-of-

Best Practice
industry performance or application.
A transportation document issued by a carrier that records the receipt of goods for
Bill of Lading
shipment and the contract terms. It is not an invoice.
The smallest unit of digital information - a single one or zero. A 96-bit EPC is a string of 96
Bit
ones and zeros.
Or bulk storage. Pallets stored on top of another in an area without individual pallet
Block Storage
racking.
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A distribution vehicle, usually used in secondary distribution, constructed as a single unit,

Box Van no trailer, where the storage section resembles a box, either with a hung door or roller
shutter door.
Consolidation of a number of small shipments for various customers into a larger load.
Break-Bulk 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.
Establishes clear competencies and responsibilities promoting communication and

Business Excellence
performance measurement to continuously improve efficiency and effectiveness within the
Strategy
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.
A distinct, separate and manageable group of products that are perceived by consumer
Category
to be interrelated
The organisation of multi-functional teams around customer oriented categories, and

Category Management giving these teams responsibility for the strategy, operations and performance of the
category across the different functions of the business.
See also National Distribution Centre. A distribution network location through which all
Central Distribution Centre
deliveries of a specific range of products pass.
Person in charge of coaching and coordinating joint multi-functional or multi-partner

Champion
processes, e.g. the Demand and Supply Planning Process of a product division.
A digit calculated from the other digits of an Element String, used to check that the data
Check Digit
has been correctly composed. (see EAN.UCC Check Digit Calculation)
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CHEP is the global leader in pallet and container pooling services, serving customers in a
CHEP 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.
Tags on which the user inserts a number at the point of using the tag; tags that can be
Class 1 tags
written once, read many.
A store delivery that has both ambient grocery and chilled/frozen products transported on
Composite Delivery the same trailer or vehicle. The trailer will be divisible into different temperature
compartments.
A multi-temperature distribution centre. The receipt, storage and handling of products

Composite Distribution
typically takes place in a variety of on-site chambers each operating at a specific
Centre
temperature.
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Consignee The party to whom goods are shipped and delivered. The receiver of a freight shipment.
The loading of two or more suppliers' deliveries to a retailer's RDC on a single vehicle. This
Consolidated Deliveries
aims to improve load utilisation and reduce unloading time at the RDC.
Distribution network location, irrespective of ownership and operational control, used to

bring together the finished goods from a number of independent regional manufacturers
Consolidation Centre
within one warehouse. The objective is to improve efficiency in both warehousing and
onward delivery to customer RDCs.
The transport unit used to move goods over long distances. A container is usually multi
Container
modal in that it can be moved by road, rail or sea.
Planning for unexpected events, usually where those events would have a significant
Contingency Planning
impact on the operation, for example disaster planning.
The management/organisational methodology whereby process and activity

Continuous Improvement 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.
Aisles running perpendicular to the aisles between racks. Cross aisles are used to improve
Cross Aisles the access to pallet locations for cross warehouse movements. They will often have pallet
spaces above them.
The process of moving goods directly from the receiving dock to the shipping dock,
Cross-Docking
without the need to place the merchandise in storage.
Curtain-Sided vehicle or Distribution vehicles or trailers where the fabric of the storage area can be drawn back,
trailer like a curtain, to facilitate loading. This method allows side loading and unloading.
Also referred to as Customer Pick-Up or Customer Backhaul. Where the customer collects
Customer Collection from a distribution network location, usually associated with the Back Haul principle where
a customer vehicle is delivering near a supplier's distribution centre.
A group of key statistics and measures relating to a customer, that defines the nature of
Customer Profile that customer in order to categorise and improve the performance of serving that
customer.
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That part of the Customer Service & Distribution process relating to the administration and
Customer Service
management of the Company Customer interface.
The magnitude of the performance measures applied to the collection of goods and
Customer Service Level
services referred to collectively as Customer Service.
A cycle count is one a stock take undertaken on a regular and defined basis. It can be
Cycle Counting 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.
The amount of time it takes to complete a business process. For example, the amount from
Cycle Time
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.
The UCC and EAN numbering structures defined in the various lengths required for the
Data Structure 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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Total amount of goods received together at a specific delivery point and time. Also
Delivery
referred to as Drop.
The length of time between the order acquisition and the actual delivery receipt by the
Delivery Lead Time
customer.
The physical location where an order or shipment is delivered to. For example: store, kiosk,
Delivery Point
depot etc.
The route taken to deliver customer orders that starts end ends at a depot or transhipment
Delivery tour
point.
Another name for the Supply Chain, with emphasis on customer or end-user demand
Demand Chain
pulling materials and product through the chain.
Demand Plan Best possible estimate of future demand including base demand and events uplifts.
Page 30 5/24/2008
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
Despatch advice 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
Physical location from which goods are shipped to another despatch location or delivered
Despatch Location
to customers. Can be Company owned or third party.
Despatch Plan Time-phased plan of future movements of goods from a Despatch location.
A pallet of goods of same or different SKU's prepared for direct use in the store to position
Display Pallet 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 Allowances are the allowances or rebates given to the customer to encourage
Distribution Allowances him to configure his orders in a manner that improves Supply Chain efficiency; also
referred to as Logistic Trade Terms. (LTT)
Page 31 5/24/2008
The sequence of storage, handling and transport requirements dependant on product type
Distribution Chain
(e.g. Vending, temperature sensitive etc) required to get the product to the consumer.
The description of distribution facilities serving as supply and replenishment points for a
Distribution Network
given product range from factory to customer and / or consumer.
A customer appointed by the Company to perform sales and distribution functions to the
Distributor
end-customer over a significant part of our product range.
A wheeled base unit that is used to move crates, cases or other transit items through the
Dolly
Supply Chain. A roll cage is an example of a Dolly.
Double Deep Racking Racking system, where one pallet is stored behind another.
A racking system where the pallets are stored one in front of another, supported on
Drive-in Racking
cantilevered, front to back, rails between which a fork lift truck can move.
Page 32 5/24/2008
Similar to Drive-in Racking but where pallets are retrieved from the opposite end from put
Drive-through racking
away in order to improve stock rotation.
Drop see Delivery.
A distribution vehicle where the storage compartment can be detached from the vehicle
Drop Body [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.
Trailers that are uncoupled from a tractor unit at a depot or store without the tractor unit
Drop Trailers waiting for the load to be unloaded. This releases the tractor unit for further trucking or
delivery work.
Material used around cargo to prevent damage, breakage or secure lading for
Dunnage transportation. Normally furnished by the shipper, and weight for same is charged for in the
rating of the shipment.
Page 33 5/24/2008
EAN International See GS1.
EAN Member Organisation See GS1 Member Organisations.
An identification number assigned by the Member Organisation to a company for use in

EAN.UCC Company Prefix
allocating item reference.
A number with 2 or more digits, co-administered by GS1 and GS1 US denoting the format
EAN.UCC Prefix
and meaning of a particular Element String.
EAN.UCC System The specifications, standards, and guidelines co-administered by GS1 and GS1 US.
The international Electronic Data Interchange (EDI) standard provided by GS1 and GS1,
EANCOM
conforming to the UN/EDIFACT standard.
Page 34 5/24/2008
Is the amount of profit earned by a company after deducting a capital charge to

Economic Profit 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.
A composition of Element Strings from scanned data and transaction information

Electronic Message
assembled for data validation and unambiguous processing in a user application.
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
EPCglobal
code (EPC) to administer standards related to the codes, and to direct implementation and
commercialisation of the EPC vision and EPC network.
A common framework within Company to manage domestic or international projects such

Event Management as new product launches, promotions or sourcing changes, involving all concerned
functions.
Pallet intended for use among a designated group of shippers and receivers where
Exchange Pallet 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.
Page 35 5/24/2008
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
Factory Gate Pricing
transportation down the Supply Chain. Currently a topic of great debate in the grocery
industry.
A warehouse within, or attached to a factory to store raw & packaging materials and / or
Factory Warehouse
finished goods ready for shipment.
A product that has completed it's final stage of manufacturing, ready to be sent to the
Finished Goods trade. Some finished goods might undergo additional work, such as labelling or re-packing
for promotions.
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
Flow-through Racking
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.
A customer organised to serve consumers products prepared for consumption e.g. through
Food Service Customer
restaurants, canteen, or vending devices.
A claim against the carrier due to the loss of, or injury to, freight and/or erroneous rates and
Freight Claim
weights in assessment of freight charges.
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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
Freight Forwarder
articles taking a similar classification; he forwards them to a destination consigned to his
own branch or agent.
A temperature at which frozen food is to be stored and distributed without the quality
Frozen 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.
An equipment-leasing arrangement that includes full service support for maintaining the
Full-Service Leasing
leased equipment in a fit condition for carrying out the task it was leased for.
A manager within the hierarchy of a function, responsible for the operation of part or all of
Functional Manager
that function within a defined geographical area i.e. factory, market or zone.
A Gantt Chart is a horizontal bar chart that graphically displays time relationships. Gantt
Gantt Chart Charts provide a method for determining the sequence and particular actions which need
to be taken to achieve a given objective.
Page 37 5/24/2008
The growing interdependence of countries world-wide through the increasing volume and
Globalisation 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.
This usually covers the activities of vehicle unloading, receipt/scanning and transfer to put
Goods Receipt
away.
Green Laning is the introduction of a ‘fast-track’ for unloading without additional controls at
Green Laning
receiver.
Handling Costs The cost involved in moving, transferring, preparing, and otherwise handling inventory.
A handling unit (HU) is a physical unit consisting of packaging materials and the material
Handling unit 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.
Page 38 5/24/2008
Warehouse storage using narrow aisles and racking between 12 and 30 metres high. Used
High bay storage
to store a large numbers of pallets on a small floor area. See also Stacker Cranes.
The control and movement of materials from suppliers and vendors into production
Inbound Logistics
processes or storage facilities.
International commercial terms developed by the International Chamber of Commerce to

INCOTERMS
define sellers' and buyers' responsibilities as they pertain to the movement of the goods.
When the services carried out under the collective term 'distribution' are done by
In-house Distribution
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.
Page 39 5/24/2008
The ability to communicate master data in a standardised and transparent way throughout
Inter-Operability
the global data synchronisation network.
Interrogator A particular type of agile reader that can also write to certain type of tags.
The merchandise a business has on hand, or the merchandise on hand in the production
Inventory
process.
The time for which a given inventory level is expected to cover demand. Usually expressed
Inventory Cover
in weeks.
This ratio measures how many times a company's inventory has been sold during a period
Inventory Turns 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.
Page 40 5/24/2008
ISO 2 pallet Industry pallet 1200mm x 1000mm.
ISO standard entitled: Packaging – Unit load sizes – Dimensions. This sets out the standard
ISO 3676 plan dimension for unit loads. Preferred 1200mmx1000mm, accepts 1200mmx800mm and
1140mmx1140mm.
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
ISO 6780
pallets derived from the standard unit load sizes. Preferred size: 1200mmx1000mm, accepts
1200mmx800mm and 1140mmx1140mm.
Item See SKU.
The part of the Global Trade Item Number® (GTIN®) allocated by the user to identify a
Item Reference
trade item for a given EAN.UCC Company Prefix.
Assembly of components or parts into defined groups, prior to a further operation, such as
Kitting
unit assembly.
Page 41 5/24/2008
Layer Pre-defined number of cases per SKU that cover the pallet footprint without overhang.
Concentrating the picking of layers into a separate area to improve picking efficiency and
Layer Picking
pallet build.
The charges from the point of origin to destination (store door to store door). These charges
Line Haul Charges include one pick up and one delivery, plus movement between the two points. Anything in
addition to this is covered under access charges.
The arrangement of pallets, and other transit packaging, in to a loading pattern in the
Load Marshalling
appropriate place on the warehouse floor ready for vehicle loading.
The elapsed time required to load a vehicle, container or trailer from prepared load to
Loading Time
ready to move. This will include scanning, loading, documentation and vehicle checks.
Any "container" that permits the physical grouping and identification of goods for shipping.
Logistic Unit It could be a carton, a plastic wrap, a pallet, or a trailer, depending upon the industry of
goods.
Page 42 5/24/2008
Identification of an item of any composition established for transport and/or storage that
Logistic Unit Identifier
needs to be managed through the Supply Chain
A lot is a quantity of a specified product manufactured / filled / packaged under identical

Lot conditions and associated with a separate release decision. It can be expected to be
uniform in its quality characteristics.
Activity aimed at ensuring the synchronisation of master data between partners along the
Master Data Alignment
Supply Chain.
Master Schedule Supply Chain KPI measuring the absolute deviation of the actual production vs. a
Attainment committed Master Schedule on a weekly basis.
Materials Handling The physical handling of products and materials.
The management of material and product flows, including procurement, movement and
Materials Management
storage, from acquisition through production to delivery.
Page 43 5/24/2008
Invoicing terms designed to encourage a customer to optimise an order in terms of the

Menu Pricing
total costs of its delivery.
The In-store organisation of the shelf space and products in order to maximise the sale of
Merchandising
those products.
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
Mini-max Inventory Levels
minimum and maximum inventory levels are normally defined with minimum and
maximum coverage of future demand.
Where the aisle width allows only for fork lift trucks with small turning circles, reach trucks,
Narrow Aisle
usually in the order of 2.6m-2.9m.
The proportion of the time that a transit system adheres to its published schedule times
On Time Performance
within stated tolerances.
A method of costing a distribution operation. All costs of the operation are visible between
Open Book Costing service provider and customer. Normally the customer understands, accepts and meets
the costs and the service provider charges a fee for managing the contract.
Page 44 5/24/2008
Opening Stock Stock situation at the beginning of a planning period.
The accumulation of all the elements, full pallets, layers and picked cases, of an order in to
Order Assembly
a single place prior to load marshalling.
This includes the time and processes involved from the placement of the order to the
Order Cycle 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.
The time between placing an order and receiving a delivery. This can be measured at
Order Lead Time 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.
Page 45 5/24/2008
The process carried out to match available stock to customer orders within the current
Order Management
guidelines for stock management.
Order Picking See Picking.
Order Processing The administrative process carried out to a customer order from receipt to invoicing.
The purpose of this process begins with capturing the customer's demand, execution,
Order to Cash
delivery, billing and payment application.
Outbound Logistics The movement and control of materials from suppliers to customers.
Outlet See Retail outlet.
Page 46 5/24/2008
The practice of procuring the service(s) collectively known as 'distribution' from a source
Outsource
outside the Company business entity i.e. a third party.
Unit Load Platform, a portable, horizontal, rigid platform used as a base, occasionally
Pallet equipped with a superstructure, for assembling, storing, stacking, handling and
transporting goods as a unit load through a distribution system.
Pallet Identification and The aggregate of activities performed to ensure that pallets are uniquely identified and
Tracking can be individually tracked all along the Supply Chain.
Partnerships and Strategic

Companies who enter into agreements designed to benefit both parties.
Alliances
An RFID tag that does not use a battery . The tag draws energy from an electromagnetic
Passive Tag
field created by the reader.
An invoice that is correct in terms of quantity, pricing, and results in payment in full and on
Perfect Invoice
time. (non legitimate delays excepted)
Page 47 5/24/2008
An order that is complete and achievable. The aim of Order Preparation is to "clean" orders
Perfect Order
of any errors to create perfect orders.
All logistics activities from the production line to the final user, including traffic, packaging,
Physical Distribution
materials handling, warehousing, order entry, customer service, inventory control, etc.
Pick & Pack Picking of product from inventory and packing into shipment containers.
Picking for a group of customer orders on the basis of SKU and assembling into individual
Pick by Line
orders after the picking process is complete.
The primary location in a warehouse at which order picking, of less than pallet loads, is
Pick Face
undertaken.
Picking by article where product is moved to the order assembly area by a moving belt
Pick to Belt
running between the pick faces. (thus mechanising part of the picking process).
Page 48 5/24/2008
System using a series of visual displays, typically a light and/or digital readout, to direct
Pick to Light operators automatically to the appropriate pick faces and to indicate the quantity
required.
Picking and Assembling orders store by store. This may be carried out for both direct
Pick to Store
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.
The statistical summary for the characteristics of an SKU, order, destination or customer
Picking Profile
relating to the proportion picked.
The delay of final activities (i.e., assembly, production, packaging, etc.) until the latest
Postponement
possible time.
Page 49 5/24/2008
Distribution from a manufacturing point or central stock holding location to another stock
Primary Distribution
holding location, usually an RDC.
A transport movement between network locations, for the deployment of stock, that has no
Primary Transport
customer order associated with. It may also be referred to as 'Transport 1' in some markets.
A group of interrelated activities which, together, achieves a desired outcome, product or

Process
service while consuming resources.
Product Code See SKU.
Product Group Homogeneous family of products. See also Category.
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
Product Life Cycle
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.
Page 50 5/24/2008
The statistical analysis of the selling patterns of a products or group of products into
Product Profile
summary format for the purpose planning and costing.
Product Recall / Removal and segregation, from circulation, of a quantity of product because it represents
Withdrawal 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.
A measure of the performance of a process expressed as a unit of output per unit of labour
Productivity
input. For example; Cases picked per man hour.
Document defining an agreement of what the project is committed, the overall budget,
Project Charter
time constraints, resources, and standards within which it must be completed.
A system where goods and materials are effectively pulled through the Supply Chain in
Pull System
response to goods being purchased by the consumer.
Page 51 5/24/2008
A racking system where pallets are stored, 2, 3 or 4 deep, on front to back extendable
Push Back Racking
rails. This allows the rear pallets to move forward under gravity to occupy the front location.
A system where goods are produced and pushed into the Supply Chain in response to
Push System
demand estimates but in quantities that minimise production costs.
The activity for placing pallets in to, usually predetermined, storage locations following
Put Away
receipt, usually through 'Goods Inward'.
The aggregate of activities performed to make sure that the quality of products
Quality Control manufactured and released corresponds in all respects to the specifications that has been
set for them.
Radial Delivery See Route Delivery.
A Fork Lift Truck designed to operate in narrow aisles, where the mast is mounted behind
Reach Truck
the front wheels to reduce its turning circle when carrying a pallet.
Page 52 5/24/2008
The process of moving inventory of an item from a reserve storage location to the primary
Replenishment
picking area.
The stock remaining, usually from a bulk consignment to a picking centre, after the
Residual Stock
customer orders have been satisfied.
Where this is a system function, e.g. in a warehouse management system, it applies to the
Resource management 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.
A non-articulated goods vehicle, where the load carrying capacity is permanently

Rigid Vehicle
attached.
Page 53 5/24/2008
Term used in Australia for vehicles longer than 30m and combining a tractor and one or
Road Train
two trailers. (known as double road train or triple road train)
The lightweight metal cages on wheels that are a commonly used way of picking and
Roll Cage
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.
Quantity of stock planned to be in inventory to protect against fluctuations in demand or

Safety Stock
supply.
The tracking of vehicles and trailers using signals transmitted via satellite receivers, which
Satellite Tracking System can pinpoint the location and re-transmit the details to a central control location. This
allows the precise locating of equipment and loads.
Page 54 5/24/2008
Secondary Distribution See Route Delivery.
The transport associated with the movement of finished goods to a customer delivery point,
Secondary Transport usually associated with a customer order. It may be referred to as 'Transport 2' in some
markets.
The basic racking format for the storage of pallets. Pallets are stored on cross beams in
Selective Pallet Racking 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.
A number assigned by the service provider to identify the recipient of services in the
Service Reference
context of a service relationship.
Distribution services that are provided for more than one client, from a common facility.
Shared User Distribution 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.
A product that can be stored at ambient temperature for extended periods of time, usually
Shelf Stable Product measured in months, without the product quality deteriorating beyond an acceptable
level. For example; Pasta, Coffee, Water etc.
Page 55 5/24/2008
The length of time after production or filling for which the specific properties of the product
Shelf-Life
can be guaranteed under defined storage conditions.
an associated discipline of merchandising that works to maximise the financial benefit to

Shelf-space Management
the store of well managed shelf space.
Shipper The party which tenders goods for transportation.
Pallet designed to be used for a single one-way trip from shipper to receiver; it is then
Shipping Pallet
disposed; see Expendable Pallet.
Stock loss that cannot be accounted for and may be the result of theft, spoilage, wastage
Shrinkage
or damage.
Stack ability Maximum number of pallets which can be stacked upon each other for a given article.
Page 56 5/24/2008
The Mechanical Handling Equipment used in conjunction with very narrow aisles and
Stacker Cranes
racking higher than ~9m for the put away and retrieval of pallets to/from racking.
A term that refers to the amount of stock available for ordering. Checking stock availability
Stock Availability
is the verification of the available stock in the stock allocation process.
The stock cover expresses how many periods of future demand are covered by the
Stock Cover
available stock on hand.
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.
Stock Policy
The stock policy is normally defined with minimum and maximum coverage of future
demand.
Store See Retail Outlet
Products returned from a store because they are deemed unsuitable for sale, damaged,
Store Returns 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.
Page 57 5/24/2008
Company Supply Chain to Customers & Consumers represents the physical, transactional,
and information networks that integrate the movement of materials, funds, and related
Supply Chain 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
A warehouse that stores raw materials or components. Goods from different suppliers are
Supply Warehouse picked, sorted, staged, or sequenced at the warehouse to assemble plant orders.
Example: Joint warehouse for packaging materials supplied to different plants.
The combination of symbol characters and features required by a particular symbology,

including Quiet Zone, start and stop characters, data characters and other auxiliary
Symbol
patterns, which together form a complete scannable entity; an instance of a symbology
and a data structure.
A group of bars and spaces in a symbol which is decoded as a single unit. It may represent
Symbol Character an individual digit, letter, punctuation mark, control indicator, or even multiple data
characters.
A tax assessed by a government on goods entering or leaving a country. The term is also
Tariff
used in transportation in reference to the fees and rules applied by a carrier for its services.
Term used in describing functionality of warehouse management systems to mix tasks to

Task Interleaving 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.
Page 58 5/24/2008
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.
Any distribution service requiring product to be stored and delivered at a controlled

Temperature Controlled
temperature.
A measure of [warehousing] input/output volume, either by weight or number of units. It is

Throughput also the total amount of units received plus the total amount of units shipped, divided by
two, at constant stock.
A term applied to a pallet defining the number of cases. Ti is the number of cases per layer
Ti-Hi
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.
Page 59 5/24/2008
A term used to describe the unloading of a trailer. The products are not in fact tipped out of
Tipping
the trailer.
The ability to trace the history, application or location of an item or activity (or similar items
Traceability 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.
Truck designed primarily to pull a semi trailer by means of a fifth wheel mounted over the
Tractor Unit rear axle(s). Sometimes called a truck tractor or highway tractor to differentiate from it from
a farm tractor.
Any item (product or service) upon which there is a need to retrieve pre-defined
Trade Item information and that may be priced or ordered or invoiced at any point in any Supply
Chain.
Traded Unit see SKU.
Page 60 5/24/2008
A party to transactions in the Supply Chain, such as a supplier (seller) or a customer

Trading Partner
(buyer).
Traffic Management The management and controlling of transportation modes, carriers and services.
A balanced set of asset movement records, such as a stock reduction balanced by the
Transaction
corresponding receivables during an invoicing transaction.
A number of orders consolidated and batch picked, taken to another location, split into
Transhipment 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.
The period during which a vehicle is continuously travelling from its point of origin to its
Trip 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.
Page 61 5/24/2008
Trunking The bulk transport element between distribution centres and factories.
The time taken to unload and load a vehicle, container or trailer, making it ready for it's
Turn Around Time
next movement.
A subset of the Code 128 Bar Code Symbol that is used exclusively for UCC.EAN defined
UCC/EAN-128 Bar Code data structures. UCC/EAN-128 Symbols can be printed as stand-alone linear symbols of as
Symbol a composite symbol with an accompanying 2D Composite Component (TM) printed
directly above the UCC/EAN-128 linear component.
International Railway Union, the controlling body for the EPAL trademark and the Euro-
UIC
Pallet standard.
Unit Load Assembly of goods on a pallet for handling, moving, storing and stacking as a single entity.
Time taken to check and unload a vehicle, container or trailer and prepare the contents
Unloading Time
for put away or onward movement.
Page 62 5/24/2008
The date after which the consumption of highly perishable foodstuff constitutes an
Use by date
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.
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
Van Sales
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.
An item always produced in the same pre-defined version (type, design, packaging, etc.)
Variable Measure Trade
that may be sold at any point in the Supply Chain, which either may vary in weight/size by
Item
its nature or which may be traded without a pre-defined weight/size/length.
Page 63 5/24/2008
The ability to access or view pertinent data or information as it relates to logistics and the
Visibility
Supply Chain.
A customer who buys Company products and in turn provides a sales and distribution
Wholesaler 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.
The term applied to aisles wider than 3.0m where counterbalance fork lift trucks can be
Wide Aisle
operated.
Win-Win Scenario Is the principle where two parties achieve mutual benefit from a proposal.
Page 64 5/24/2008

Supply Chain Acronyms and Definitions

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Supply Chain Acronyms and Definitions

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Supply Chain Glossary

Acronym Term Description

A distribution company that offers transport, warehousing, inventory and information

An unmanned, computer controlled item of mechanical handling equipment for moving

Advanced Planner and

ASN Advanced Shipping Notice See Dispatch Advice.

Business Planning &

Technical instruction document concerning concepts and procedures related to quality

CRM Customer Relationship Management - a formal approach, often accompanied by

The function of determining time-phased requirements for inventory at distribution locations

The paperless exchange of business documents or information by electronic computer-to-

A computerized system that processes financial transactions and related information or

An initiative launched in October 1999 and created by manufacturers, retailers and

Global Individual Asset

GPS Gross Proceeds of Sales

A non-governmental organisation which mission is to promote the development of

Interleaved 2 of 5 is a continuous, self checking symbology primarily used in industrial and

LTT Logistics Trade Terms See distribution allowances.

MRP II is a method for planning of all the resources of a manufacturing company. It is

NPS Net Proceeds of Sales

A performance measure of compliance with a customer order. Delivering what was

Is consumer purchase information transferred electronically from POS to a database to

A consumer-driven system of replenishment in which high-quality products and accurate

Additional packaging designed to facilitate self-service sales or to advertise and market

Systeme Anwendungen Produkte or Systems Applications Products in data processing. SAP

Technical instruction document that substitutes a letter, in order to have a Technical

Technical instruction document concerning Engineering issues not related to specific

Also known as competitive benchmarking, the methodology that determines state-of-

A distribution vehicle, usually used in secondary distribution, constructed as a single unit,

Bulk Storage See block storage.

Establishes clear competencies and responsibilities promoting communication and

Carrier Business partner who provides transportation services.

The organisation of multi-functional teams around customer oriented categories, and

Person in charge of coaching and coordinating joint multi-functional or multi-partner

A multi-temperature distribution centre. The receipt, storage and handling of products

Distribution network location, irrespective of ownership and operational control, used to

The management/organisational methodology whereby process and activity

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

Distribution See Physical Distribution.

Drop see Delivery.

EAN International See GS1.

EAN Member Organisation See GS1 Member Organisations.

An identification number assigned by the Member Organisation to a company for use in

Is the amount of profit earned by a company after deducting a capital charge to

A composition of Element Strings from scanned data and transaction information

A common framework within Company to manage domestic or international projects such

International commercial terms developed by the International Chamber of Commerce to

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

ISO 2 pallet Industry pallet 1200mm x 1000mm.

Item See SKU.

A lot is a quantity of a specified product manufactured / filled / packaged under identical

Materials Handling The physical handling of products and materials.

Invoicing terms designed to encourage a customer to optimise an order in terms of the

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

Order Picking See Picking.

Outlet See Retail outlet.

Partnerships and Strategic

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

A group of interrelated activities which, together, achieves a desired outcome, product or

Product Code See SKU.

Product Group Homogeneous family of products. See also Category.

Radial Delivery See Route Delivery.

A non-articulated goods vehicle, where the load carrying capacity is permanently