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The entire process of producing and selling a product, from the raw materials to the final customer.
The cost advantages that a business obtains due to expansion, often leveraged in lateral supply chains by outsourcing to specialized providers.
Cost efficiencies gained by producing a wider variety of products or services together rather than separately.
The integration of digital technology into all areas of supply chain operations, enabling predictive analytics, automation, and end-to-end visibility.
The European term for supply chain digital transformation, emphasizing automation, smart factories, and data-driven decision-making.
A logistics practice where products are unloaded from an incoming vehicle and loaded directly into an outbound vehicle, with little or no storage in between.
The process of retrieving products from a warehouse to fulfill a customer's order. This can be done manually or with automated systems.
The final leg of the delivery process, from a distribution center or hub to the final customer's doorstep. It is often the most expensive and time-consuming part.
The process of storing, handling, and delivering finished goods from manufacturers or distribution centers to retailers, wholesalers, or end customers efficiently and cost-effectively.
The paths or routes through which goods and services flow from producers to end customers. They can include direct channels (manufacturer to customer) and indirect channels (wholesalers, distributors, retailers, etc.). Distribution channels determine how products reach the market efficiently.
A buffer of inventory kept to mitigate the risk of stockouts due to unexpected changes in supply or demand.
A unique alphanumeric code assigned to a specific product to identify and track it within a warehouse or inventory system.
Software designed to support and optimize warehouse and distribution center management, from receiving and putaway to order fulfillment and shipping.
Warehouses can be categorized based on ownership, function, and storage needs, including public, private, bonded, distribution centers, and automated warehouses.
A warehouse is a facility for storing goods before distribution. Unlike normal shipment, it serves as an intermediate hub for ops.
The process of forecasting, influencing, and managing customer demand to align supply chain activities with market needs.
Estimating future customer demand using historical data, market research, and statistical methods.
The difference between actual demand and forecasted demand, used to evaluate the reliability of forecasting methods.
A process that balances demand forecasts with supply capabilities, aligning plans across marketing, sales, and operations.
The broader process that includes S&OP, master scheduling, and other planning activities to align resources with demand.
A systematic process of analyzing an organization's spending and sourcing needs to make a strategic plan for sourcing and purchasing goods and services.
A commercial document and first official offer issued by a buyer to a seller, indicating types, quantities, and agreed prices for products or services.
A comprehensive approach to managing an enterprise's interactions with the organizations that supply the goods and services it uses.
The process of identifying, evaluating, and engaging suppliers to meet supply chain needs.
Obtaining goods or services internally within the organization instead of external suppliers.
Internationally recognized rules by the ICC defining responsibilities of sellers and buyers for goods delivery.
A service provider that arranges storage, consolidation, and shipping of merchandise on behalf of shippers.
Using multiple transport modes for goods in one container without handling the goods when changing modes.
Ensures timely movement of goods across the supply chain, balancing cost, speed, and reliability.
Various transport options such as road, rail, air, sea, and pipeline, each with unique cost and speed tradeoffs.
A method to minimize waste and maximize productivity in the manufacturing process.
A strategy to produce or receive goods only when needed, reducing inventory and waste.
An approach focused on continuous improvement and customer satisfaction across all operations.
A Japanese term meaning 'continuous improvement' involving all employees to enhance efficiency and quality.
A visual scheduling system from Japan that signals demand and helps manage workflow in production.
A supply chain designed for disaster relief and humanitarian aid, which must be agile, resilient, and responsive under uncertain conditions.
The ability of a supply chain to respond quickly to unpredictable changes in demand or supply, critical for humanitarian and volatile environments.
A specialized supply chain focused on balancing cost efficiency with safe and effective patient care.
A system mandated in healthcare to uniquely identify medical devices, improving tracking, billing, and safety.
A strategy where critical supplies are centralized to spread risk and reduce the likelihood of shortages in healthcare or crisis supply chains.
A group of business processes that includes demand management (forecasting and order servicing), production and resource planning, and master scheduling.
A long-term plan, extending five to ten years or more, that focuses on marshalling resources and determining actions to support the organization's mission and goals.
A plan that states the organizational strategy in more specific terms and sets goals for achieving the strategy over the next one to three years, typically stated in dollars and grouped by product family.
A high-level view of future production requirements over a 12 to 18-month horizon, providing the rate of production at the product family level as an output of S&OP.
The output of master scheduling, which is typically a weekly plan at the item level detailing what will be produced.
A modular suite of integrated business applications built around a central database to support planning, manufacturing, purchasing, finance, sales, logistics, and other functions across the enterprise.
Modules where users interact with the ERP system for tasks such as order placement, inventory movement, billing, and purchasing. They align tactical decisions with strategic goals.
Computer systems that use mathematical algorithms to optimize and simulate logistics and manufacturing across strategic, tactical, and operational levels of the supply chain.
A module within APS that forecasts demand using order history, customer data, seasonality, and marketing events.
Coordinates the capacities and constraints of resources across the supply chain using inputs such as demand forecasts, costs, and product characteristics.
Quantitative measures used to track, evaluate, and improve the efficiency, effectiveness, and adaptability of supply chain processes.
A framework that measures organizational performance from multiple perspectives—customer, business process, financial, and learning/innovation—ensuring alignment with supply chain objectives.
A real-time management tool that presents key performance indicators in an easy-to-read format to monitor supply chain performance.
The Supply Chain Operations Reference model, a standardized framework for evaluating and improving supply chain performance across plan, source, make, deliver, return, and enable processes.
Part of the SCOR model focused on balancing resources and requirements to create supply chain strategies.