Glossary

A price that can be directly tied to the production of specific goods or services. They are often variable costs and fluctuate with production levels such as inventory.

Material, from raw items to parts, used in the manufacturing process to make products.

Measures the net profit contribution attributable to a specific product or product line.

Retail locations that purchase products directly from your organization or responding entity.

Shipping orders directly from a manufacturer’s plant or distribution center to the customer’s retail store, and bypassing the customer’s distribution center.

See Direct Store Delivery (DSD).

See Data Interchange Standards Association (DISA).

Plans to recover hardware and software related to information system outages. See Contingency Planning.

The port where cargo is unloaded from the vessel.

A production process where the output can be counted and the object being created is a distinct unit.

Cutting out the middleman in a supply chain, such as when a manufacturer ships directly to a retailer and bypasses the distributor.

Carrier activities involved with the controlling of equipment and driver management. Includes arranging for fuel, drivers, crews, equipment, and terminal space.

The port or carrier's location from which a shipment departs.

Geographically dispersed inventory, such as where a company maintains inventory in multiple distribution centers to provide a higher level of customer service.

All aspects of managing the movement of materials from the manufacturer to the customer, including transportation, warehousing, and inventory control.

A warehouse-type facility that stores inventory and then processes the shipments to their next or final destination.

Where one or more companies participate in the flow of goods and services from the manufacturer to the final user or consumer.

Overseeing the various channels that a company uses to get its products to customers, including planning, organizing, and monitoring the distribution.

Organizing and managing the distribution of goods and materials from the point of origin to the point of consumption. See Distribution.

Determining the demands for inventory at distribution centers and consolidating demand information in reverse as input to the production and materials system.

Calculating and organizing the key resources needed to distribute a product or service, including warehouse space, workforce, money, trucks, freight cars, etc.

See Distribution Center (DC).

A business that purchases and resells products made by others. Usually maintains a finished goods inventory. Also called a wholesaler.

Changing the destination or the consignee (or both) while the shipment is en route.

Document used to accept cargo at an ocean pier or accepted location. Provides receipt for the ocean carrier and proof of delivery for the delivering carrier.