Supply Chain Management Glossary
3PL (Third-Party Logistics)
The use of an outside partner to perform some part of the supply chain function, such as warehousing or delivery.
Center-of-Gravity
Locating warehouses or distribution centers based on amount of product shipped. This determines a warehouse location associated with product transfer between a manufacturing plant and customer markets.
Connectivity
The capability to effectively exchange information with external supply chain partners in a timely and efficient manner and format.
Inventory Pull
Supply chain methodology whereby a manufacturer waits to produce a product until a customer orders it.
Inventory Push
Supply chain methodology whereby a manufacturer produces a product before a customer orders it, based on demand forecasts or anticipated sales.
Just-in-time (JIT)
An inventory management method focused on inventory reduction by delivering materials or products or materials just when they will be needed in production.
Kanban
Japanese forecasting and inventory-reduction method whereby a manufacturer can schedule parts and materials arrival to the time when they will be needed in production.
Postponement
Delaying product change or inventory location decisions closer to the time of purchase to reduce costs in the supply chain.
Supply Chain Design
How a supply chain is structured. Parameters include partner selections, production facilities, warehouse locations, delivery fleet management and supporting supply chain management software.
Supply Chain Execution (SCE)
The ability to move manufactured products from the distributor warehouse to the customer.
Supply Chain Inventory Visibility
Supply chain management software that monitors inventory and other events across a supply chain.
Supply Chain Management (SCM)
Integration of end-to-end business processes from various source suppliers through production to final delivered customer product.
Supply Chain Operations Reference Model (SCOR)
Supply chain model developed by the Supply Chain Council (SCC). The goal of SCOR is to provide a uniform set of methods, metrics and benchmarks for determining supply chain performance.
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