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Supply Chain and Logistics Terms and Glossary

Gain Sharing: A method of incentive compensation where supply chain partners share collectively in savings from productivity improvements.  The concept provides an incentive to both the buying and supplier organizations to focus on continually re-evaluating, re-energizing, and enhancing their business relationship.  All aspects of value delivery are scrutinized, including specification design, order processing, inbound transportation, inventory management, obsolescence programs, material yield, forecasting and inventory planning, product performance and reverse logistics.  The focus is on driving out limited value cost while protecting profit margins.  Also see Performance Based Logistics.

 

Gap analysis: The process of determining and documenting the variance (gap) between goals and current performance.

 

Gateway: The connection that permits messages to flow freely between two networks.

 

Gathering lines: Oil pipelines that bring oil from the oil well to storage areas.

 

GATT:  See General Agreement on Tariffs and Trade

 

GCI:  See Global Commerce Initiative

 

GDSN:  See GlobalData Synchronization Network

 

Gemba Kanri: A Lean management term which refers to the control and improvment of the value creating processes.

Genchi Genbutsu: A Japanese phrase used in Lean management which means "Go and see for yourself" Rather than simply hear or read about a problem and make a suggestion for improvement, one should actually go to its direct location and experience the situation first hand.

 

\General Agreement on Tariffs and Trade (GATT): The General Agreement on Tariffs and Trade started as an international trade organization in 1947, and has been superseded by the World Trade Organization (WTO).  GATT (the agreement) covers international trade in goods.  An updated General Agreement is now the WTO agreement governing trade in goods.  The 1986-1994 “Uruguay Round” of GATT member discussions gave birth to the WTO and also created new rules for dealing with trade in services, relevant aspects of intellectual property, dispute settlement, and trade policy reviews.  GATT 1947: The official legal term for the old (pre-1994) version of the GATT.  GATT 1994: The official legal term for new version of the General Agreement, incorporated into the WTO, and including GATT 1947.

 

General commodities carrier: A common motor carrier that has operating authority to transport general commodities, or all commodities not listed as special commodities.

 

General-merchandise warehouse: A warehouse that is used to store goods that are readily handled, are packaged, and do not require a controlled environment.

 

General Order (GO): A customs term referring to a warehouse where merchandise not entered within five working days after the carrier's arrival is stored at the risk and expense of the importer.

 

GIF: See Graphics Interchange Format.

 

Global Commerce Initiative (GCI): A business requirements group that brings manufacturers and retailers together on a worldwide basis to simplify and enhance global commerce and improve consumer value in the overall retail supply chain. It is a global user group, and its charter is to drive the implementation of EAN.UCC standards and best practices.

 

Global Data Synchronization Network (GDSN):  The GDSN is an Internet-based, interconnected network of interoperable data pools and a Global Registry, the GS1 Global Registry  that enables companies around the world to exchange standardized and synchronized supply chain data with their trading partners.

 

Global Location Number (GLN): Unique location number mandatory within the Global Data Synchronization process to identify data owners/info providers, etc such as Distributors, brokers, manufacturers.

 

Global Positioning System (GPS): A system which uses satellites to precisely locate an object on earth. Used by truck­ing companies to locate over-the-road equipment.

 

Global Standards Management Process (GSMP):  The Global Standards Management Process (GSMP) is the Global Process established in January 2002 by EAN International and the Uniform Code Council, Inc. (UCC) for the development and maintenance of Global Standards and Global Implementation Guidelines that are part of the EAN.UCC system.

 

Global Strategy: A strategy that focuses on improving worldwide performance through the sales and marketing of common goods and services with minimum product variation by country.  Its competitive advantage grows through selecting the best locations for operations in other countries.

 

Global Trade Item Number (GTIN): A unique number that comprises up to 14 digits and is used to identify an item (product or service) upon which there is a need to retrieve pre-defined information that may be priced, ordered or invoiced at any point in the supply chain.  The definition covers raw materials through end user products and includes services, all of which have pre-defined characteristics.  GTIN is the globally-unique EAN.UCC System identification number, or key, used for trade items (products and serv­ices). It’s used for uniquely identifying trade items (products and services) sold, delivered, warehoused, and billed throughout the retail and commercial distribution channels. Unlike a UPC number, which only provides information specific to a group of products, the GTIN gives each product its own specific iden­tifying number, giving greater accuracy in tracking. See EPC

 

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

 

GLN: See Global Location Number

 

Going-concern value: The value that a firm has as an entity, as opposed to the sum of the values of each of its parts taken separately; particularly important in determining what constitutes a reasonable railroad rate.

 

Gondola: A rail car with a flat platform and sides three to five feet high; used for top loading of items that are long and heavy. 

 

Good Manufacturing Practices (GMP) or 21 CFR, parts 808, 812, and 820: Requirements governing the quality procedures of medical device manufacturers.

 

Goods Received Note (GRN): Documentation raised by the recipient of materials or products.

 

GMP: See Good manufacturing practices.

 

GNP: See Gross National Product.

 

GO: See General Order.

 

Goods: A term associated with more than one definition: 1) Common term indicating movable property, merchandise, or wares. 2) All materials which are used to satisfy demands. 3) Whole or part of the cargo received from the shipper, including any equipment supplied by the shipper.

 

GPS: See Global Positioning System.

 

Grandfather clause: A provision that enabled motor carriers engaged in lawful trucking operations before the passage of the Motor Carrier Act of 1935 to secure common carrier authority without proving public convenience and necessity; a similar provision exists for other modes. 

 

Granger laws: State laws passed before 1870 in Midwestern states to control rail transportation.

 

Graphics Interchange Format (GIF): A graphical file format commonly used to display indexed-color images on the World Wide Web. GIF is a compressed format, designed to minimize file transfer time over standard phone lines.

 

Great Lakes carriers: Water carriers that operate on the five Great lakes.

 

Grid technique: A quantitative technique to determine the least-cost center, given raw materials sources and markets, for locating a plant or warehouse.

 

GRN: See Goods Received Note

 

Green field: A method used to launch a new process or initiative where no others of that type have previously existed.

 

GreenLane: A concept that would give C-TPAT members that demonstrate the highest standard of secure practices additional benefits for exceeding the minimum requirements of the program. GreenLane benefits would include expedited movement of cargo, especially during an incident of national significance.

 

Groupthink: A situation in which critical information is withheld from the team because individual members censor or restrain themselves, either because they believe their concerns are not worth discussing or because they are afraid of confrontation.

 

Gross Inventory: Value of inventory at standard cost before any reserves for excess and obsolete items are taken.

 

Gross Margin: The difference between total revenue and the cost of goods sold.  Indicates the profit a business makes on its cost of sales. In other words, the amount of gross profit per $1 of turnover the business is earning.  Syn: gross profit margin.

 

Gross National Product (GNP): A measure of a nation’s output; the total value of all final goods and services produced during a period of time.

 

Gross weight: The total weight of the vehicle and the payload of freight or passengers. 

 

GS1: The new name of EAN International. The GS1 US is the new name of the Uniform Code Council, Inc® (UCC®) the GS1 Member Organization for the U.S., the association that administrates UCS, WINS, and VICS and provides UCS identification codes and UPCs.  GS1 subgroups also manage the standards for electronic product codes (EPCGlobal) and Rosettnet.

 

GTIN: See Global Trade Item Number

 

GTM: Global Trade Management.

 

Guaranteed loans: Loans made to railroads that are cosigned and guaranteed by the federal government. 

Download the entire glossary in pdf format (1.2MB).

Definitions compiled by Supply Chain Visions, Bellevue, WA, www.scvisions.com. Updated May 2009.
Please note: The Center for Value Chain Research (CVCR) does not take responsibility for the content of these definitions, nor does the CVCR endorse these as official definitions except as noted.