Supply Chain
the sequence of organizations - their facilities, functions, and activities - that are involved in producing and delivering a product or service
Supply chain management
The strategic coordination of the supply chain for the purpose of integrating supply and demand management.
logistics
the movement of goods, services, cash, and information in a supply chain
resiliency
the ability of a business to recover from an event that negatively impacts the supply chain
supply chain visibility
a major trading partner can connect to its supply chain to access data in real time
event-response capability
the ability to detect and respond to unplanned events
purchasing cycle
Series of steps that begin with a request for purchase and end with notification of shipment received in satisfactory condition.
centralized purchasing
purchasing is handled by one special department
decentralized purchasing
individual departments or separate locations handle their own purchasing requirements
e-business
the use of electronic technology to facilitate business transactions
vendor analysis
Evaluating the sources of supply in terms of price, quality, reputation, and service
strategic partnering
Two or more business organizations that have complementary products or services join so that each may realize a strategic benefit.
inventory velocity
the speed at which goods move through a supply chain
bullwhip effect
inventory oscillations become progressively larger looking backward through the supply chain
vendor-managed inventory (VMI)
Vendors monitor goods and replenish retail inventories when supplies are low.
order fulfillment
The processes involved in responding to customer orders.
traffic management
overseeing the shipment of incoming and outgoing goods
Radio Frequency Identification (RFID)
A technology that uses radio waves to identify objects, such as goods in supply chains
Third party logistics (3PL)
The outsourcing of logistics management
Strategic sourcing
Analyzing the procurement process to lower costs by reducing waste and non-value-added activities, increase profits, reduce risks, and improve supplier performance.
Information velocity
the speed at which information is communicated in a supply chain
fill rate
the percentage of demand filled by the stock on hand
reverse logistics
the process of transporting returned items
Gatekeeping
screening returned goods to prevent incorrect acceptance of goods
avoidance
finding ways to minimize the number of items that are returned
closed-loop supply chain
a manufacturer controls both the forward and revers shipment of a product
cross-docking
A technique whereby goods arriving at a warehouse from a supplier are unloaded from the supplier's truck and loaded onto outbound trucks, thereby avoiding warehouse storage.
delayed differentiation
Production of standard components and subassemblies, which are held until late in the process to add differentiating features.
disintermediation
Reducing one or more steps in a supply chain by cutting out one or more intermediaries