Glossary

One of the key elements that comprises the total supply chain management costs. Includes related costs of purchasing, transporting, and storing goods needed.

The percentage of local raw material in the end product. The sum of the localized raw material weights divided by the weight of the finished product.

A computer-based purchasing and inventory management system designed to determine the optimal timing and quantities of materials to purchase.

A document that details safety information about a hazardous material, including the ingredients, handling procedures, first aid procedures and precautions.

The physical movement and storage of products and materials between procurement and shipping; includes receiving, inspecting, sorting, packaging, etc.

Managing the movement and storage of materials and products from procurement through production; includes sourcing, acquition, handling, storage, etc.

The materials management function that is responsible for ensuring that the materials supplied are timed to match the materials demanded.

Where the reporting relationships are set up as a matrix - a grid - instead of the traditional vertical hierarchy and employees may report to two or more managers.

A pre-established limit to the number of items that can be ordered at one time.

Business transactions conducted via mobile devices. A subset of E-Commerce but specifically with the use of mobile devices such as smartphones or tablets.

The mathematical average of a given set of values.

A unit of measurement used in water transportation rate making and equivalent to forty cubic feet.

The middle number in a sorted list of numbers, the value separating the higher half from the lower half of a data set.

Combining multiple shipments from suppliers and to go directly to a buyer, bypassing the seller.

An agreement that unites two existing companies into one new company. Often used to expand operations, consolidate market positions, or acquire technologies.

See Manufacturing Execution Systems (MES).

In EDI, the exchange of data organized in segments. Typically, it is associated with a common business transaction, such as a purchase order or shipping notice.

Work performance indicators for the results achieved in an activity, process, or organizational unit. The measures enable periodic comparison and benchmarking.

1,000 kilograms, or approximately 2,204.6 pounds.

An intermodal shipment that is moved from a foreign country to the U.S. by water and then across the U.S. by railroad to an interior, non-port city, or vice versa.

An allowance, based upon distance, that railroads give to shippers using private railcars to help offset the cost of operating and maintaining the private railcars.

The charge by the carrier to the shipper based on the number of miles the commodity is shipped. It usually includes a base rate and fuel surcharge.

The completion of a scheduled event that marks a defined phase within a project or the flow of goods.

A port to port shipment that is moved in two legs instead of one: first by water with an intermediary stop, and then by railroad to the destination. Or vice versa.

The shipment weight the carrier’s tariff specifies as the lowest weight required to use the TL or CL rate. The rate discount volume does not apply for lower weights.