1.

Back Order:
Product ordered but out of stock and promised to ship when the product
becomes available.

2. Benchmarking:
The process of comparing performance against the practices of other
leading companies for the purpose of improving performance. Companies
also benchmark internally by tracking and comparing current
performance with past performance. Benchmarking seeks to improve any
given business process by exploiting "best practices" rather than merely
measuring the best performance. Best practices are the cause of best
performance. Studying best practices provides the greatest opportunity
for gaining a strategic, operational, and financial advantage.

3. Bill of Material (BOM):

A structured list ofall the materials or parts and quantities needed to
produce a particular finished product, assembly, subassembly, or
manufactured part,

4. Channels of Distribution:
The downstream flow of products through various outlets or channels
which may consist of distributors, retail stores,on-line fulfilment.

5. Consignee: The party to whom goods are shipped and delivered. The
receiver of a freight shipment.

6. Consignor: The party who originates a shipment ofgoods (shipper). The

sender of a freight shipment, usually the seller.

7. Consolidation: Combining two or more shipments in order to realize

lower transportation rates.

8. Constraint: A bottleneck, obstacle or planned control that limits

throughput or the utilization of capacity.

9. Containerization:
A system of intermodal freight transport using standard intermodal
containers that are standardized by the International Organization for
Standardization (ISO). These can be loaded and sealed intact onto
container ships, railroad cars, planes, and trucks.
10.Distribution Center (DC): The warehouse facility which holds
inventory from manufacturing pending distribution to the appropriate
stores.

11.Dunnage: The materials used in packaging, holds and containers to

protect goods from damage.

12.Ergonomic: The science of creating workspaces and products which are

human friendly to use.

13.Fill Rate: The percentage of order items that the picking operation
actually fills within a given period of time.

14.Freight Consolidation: The act of combining individual shipments into a

single lot in order to reduce costs or improve transport equipment
utilization. Consolidation can take a variety forms by customer,
geography, shipping land or schedule. Consolidation may occur at the
shipping facility or may be a service of a third party.

15.Fulf illment: The act of fulfilling a customer order. Fulfillment includes

order management, picking, packaging, and shipping.

16.Full Container load (FCL):A term used when goods occupy a whole
container.

17.Full Truckload (FTL): A term which defines a shipment which occupies

at least one complete truck trailer, or allows for no other shippers goods
to be carried at the same time.

18.Global Positioning System (GPS): A system which uses satellites to

precisely locate an object on earth. Used by trucking companies to locate
overthe-road equipment.

19.Globalization: The process of making something worldwide in scope or

application.

20.Handling Costs: The cost involved in moving, transferring, preparing,

and otherwise handling inventory.

21.In-transit Inventory: Material moving between two or more locations,

usually separated geographically; for example, finished goods being
 shipped from a plant to a distribution center. In-transit inventory is an
easily overlooked component of total supply chain availability.

22.Inventory Turns:

This ratio measures how many times a company's inventory has been sold
(turned over)during a period of time.
The cost of good sold divided by the average level of inventory on hand.
Operationally, inventory turns are measured as total throughput divided
by the average level of inventory for a given period - how many times a
year the average inventory for a firm changes over, or is sold.

23.Make-to-Order (MTO):
Also called Manufacture-to-order.
A manufacturing process strategy where the trigger to begin manufacture
of a product is an actual customer order or release, rather than a market
forecast. For Make-to-Order products, more than 20%of the value-added
takes place after the receipt of the order or release, and all necessary
design and process documentation is available at time of order receipt.

24.Make-to-Stock (MTS):
Also called Manufacture-to-stock.
A manufacturing process strategy where finished product is continually
held in plant or warehouse inventory to fulfill expected incoming orders
or releases based on a forecast.