C & F:
See: Cost and Freight
Customs Automated Data Exchange System
A federal law that requires coastal and inter-coastal traffic to be carried in U.S.-built and –registered ships.
See: Computer Aided Engineering
  1. A secure enclosed area for storing highly valuable items.
  2. Pallet-sized platform with sides that can be secured to the tines of a forklift and in which a person may ride to inventory items stored will above the warehouse floor.
CAGE Code:
The Commercial and Government Entity code is a 5 character (number and letters) code used to identify contractors doing business with the U.S. Government.
Referring to the practice of placing high-value or sensitive prod­ucts in a fenced off area within a warehouse.
Calendar Days:
The conversion of working days to calendar days is based on the number of regularly scheduled workdays per week in your manufacturing calendar.Calculation: To convert from working days to calendar days: if work week= 4 days, multiply by 1.75= 5 days, multiply by 1.4= 6 days, multiply by 1.17
Call Center:
A call center is a centralized office used for the purpose of receiving and transmitting a large volume of requests by telephone. A call centre is operated by a company to administer incoming product support or information inquiries from consumers. Outgoing calls for telemarketing, clientele, product services, and debt collection are also made. In addition to a call centre, collective handling of letters, faxes, live chat, and e-mails at one location is known as a contact center. Synonym: Customer Interaction Center.
Call Volume:
The number of telephone calls made or received over a specific period of time.
Call-Off Orders:
A strategy to delay delivery of items that are not needed immediately. Instead, you “call off” the items from the purchase order you want as you need them. See: Blanket Purchase Order
Can-Order Point:
A supplier ordering method where multiple items from the same vendor are considered / reviewed if any one item from that vendor falls below a specific order point (either set or calculated). Once an item triggers an order, any other items which are near their order point are also considered. This is done to prevent multiple orders for a single vendor in a short time frame, allowing for possible price breaks and shipping discounts.
Cantilever Rack:
Racking system that support columns at the rear and arms which attach to the support columns to hold shelving or stock. Cantilevers racks allow for storage of very long items.
Automated equipment generally used for picking of small, high-volume parts.
Capable to Promise (CTP):
A technique similar to Available-to-Promise, it uses the availability of individual components to determine if an end item can be configured and assembled by a customer-given request date and provides the ability of adjusting plans due to inaccurate delivery date promises. Capable to promise looks at both materials and labor/machine requirements.
Capability Maturity Model (CMM):
A framework that describes the key elements of an effective software process. It's an evolutionary improvement path from an immature process to a mature, disciplined process. The CMM covers practices for planning, engineering and managing software development and maintenance. When followed, these key practices improve the ability of organizations to meet goals for cost, schedule, functionality and product quality.
The physical facilities, personnel and process available to meet the product or service needs of customers. Capacity generally refers to the maximum output or producing ability of a machine, a person, a process, a factory, a product, or a service. Also See: Capacity Management
Capacity Management:
The concept that capacity should be understood, defined, and measured for each level in the organization to include market segments, products, processes, activities, and resources. In each of these applications, capacity is defined in a hierarchy of idle, non-productive, and productive views.
Capacity Planning:
Assuring that needed resources (e.g., manufacturing capacity, distribution center capacity, transportation vehicles, etc.) will be available at the right time and place to meet logistics and supply chain needs.
A term used to describe the monetary requirements (CAPital EXPenditure) of an initial investment in new machines or equipment.
The resources, or money, available for investing in assets that produce output.
See: Corrective Action
Car Supply Charge:
A railroad charge for a shipper’s exclusive use of special equipment.
Carbon Footprint:
A measure of the total carbon emissions for a given person, organization, building, operation etc. and the impact their carbon emissions have on the environment by relating the amount of greenhouse gases produced to such activities as burning fossil fuels for electricity, heating transportation, etc.
Carbon Trade:
The process of buying and selling credits to emit carbon. Companies and organizations are assigned emission permits that stand for the amount of carbon they are allowed to emit. If a company or organization emits less carbon, then it can sell its emissions permits. If emissions are more than its current permits, then it will need to buy emission permits from other companies or organizations that produce less carbon
The subject of a shipment. The materials being carried.
Carload Lot:
A shipment of not less than five tons of one commodity
Carmack Amendment:
An Interstate Commerce Act amendment that delineates the liability of common carriers and the bill of lading provision.
Carousels are a technology used to store items for eventual picking or retrieval in a series of motorized bins. There are two primary types of carousels (horizontal and vertical) and one related technology, all of which operate under some form of computer control. Since the late 1990s, carousels have been placed under the more general category of AS/RS.
A firm which transports goods or people via land, sea or air.
A group of organizations which would normally be considered competitive, but who instead have an agreement to cooperate in an area of endeavor in an effort to improve the position of the group.
The process of putting small box shipments into a lager carton, also called over packing or strapping cases together.
Cascade Tendering:
Loads are electronically submitted to the carrier who submitted the lowest rate on that shipping lane (origin zip code to destination zip code)
Case Code:
The UPC number for a case of product. The UPC case code is different from the UPC item code because it uses the case identifier as an extended part of the number. This is sometimes referred to as the “Shipping Container Symbol” or ITF-14 code.
Cash-to-Cash Cycle Time:
The time it takes for cash to flow back into a company after it has been spent for raw materials. Note that this is a measure of when the financial transaction occurs, not when stock movement happens.There are occasions where C2C is negative, indicating that payment is received from sales of the product before the supplier is paid. Synonym: Cash Conversion Cycle.Calculation: Total Inventory Days of Supply + Days of Sales Outstanding - Average Payment Period for Material in days
Cash Conversion Cycle:
Typically the length of time from the purchase of raw materials to the collection of payment from customers. In retail settings it may refer to the length of time from sales to payment receipt. Also See: Cash-to-Cash Cycle Time, Days Sales Outstanding
Catalog Item (CI):
The item as it is stored in a catalog or data pool. In the Global Data Synchronisation Network the catalog item is uniquely identified by (GTIN + GLN + Target Market).
Catalog Channel:
A call center or order processing facility that receives orders directly from the customer based on defined catalog offerings and ships directly to the customer.
Categorical Plan:
A method of categorizing purchased materials and suppliers based on product type, using departments or functional area. Plans are used to evaluate suppliers in groups. Also See: Weighted-Point Plan
Category Management:
The management of product categories as strategic business units. The practice empowers a category manager with full responsibility for the assortment decisions, inventory levels, shelf-space allocation, promotions and buying. With this authority and responsibility, the category manager is able to judge more accurately the consumer buying patterns, product sales and market trends of that category.
Cause and Effect Diagram:
In quality management, a structured process used to organize ideas into logical groupings. Used in brainstorming and problem solving exercises. Also known as Ishikawa or fish bone diagram.
See: Customs and Border Protection.
See: Computer-Based Training.
An area of manufacturing or assembly which consists of a series of work units devoted to the manufacture of a specific product. Cellular manufacture is an alternative to the traditional production line.
Cellular Manufacturing:
A manufacturing approach in which equipment and workstations are arranged to facilitate small-lot, continuous-flow production. In a manufacturing "cell," all operations necessary to produce a component or subassembly are performed in close proximity, thus allowing for quick feedback between operators when quality problems and other issues arise. Workers in a manufacturing cell typically are cross-trained and able to perform multiple tasks as needed.
Center-of-Gravity Approach:
A supply chain planning methodology for locating distribution centers at approximately the location representing the minimum transportation costs between the plants, the distribution centers, and the markets.
Centralized Authority:
Management authority to make decisions is restricted to few managers.
Centralized Dispatching:
An organizational strategy and structure where all workflow is controlled from a single location or group. Dispatching can consist of production orders as well as inbound /outbound shipments of goods.
Centralized Inventory Control:
An organizational strategy and structure where all inventoried items are controlled from a single location or group.
Certificate of Analysis (COA):
A certification of conformance to quality standards or specifications for products or materials. It may include a list or reference of analysis results and process information. It is often required for transfer of the custody/ownership/title of materials.
Certificate of Compliance:
A document, often required by an importer or governmental authorities, attesting to the quality or purity of commodities. The origin of the certification may be a chemist or any other authorized body such as an inspection firm retained by the exporter or importer.
Certificate of Origin:
An international business document that certifies the country of origin of the shipment.
Certificate of Public Convenience and Necessity:
The grant of operating authority that is given to common carriers. A carrier must prove that a public need exists and that the carrier is fit, willing, and able to provide the needed service. The certificate may specify the commodities to be hauled, the area to be served, and the routes to be used.
Certified Supplier:
A supplier who has demonstrated the ability to consistently meet established quality, cost, delivery, financial, and count objectives, and has therefore been awarded the “certified” designation. Suppliers in this group may be able to bypass incoming quality inspection.
Certificated Carrier:
A for-hire air carrier that is subject to economic regulation and requires an operating certification to provide service.
See: Continuous Flow Distribution
See: Current Good Manufacturing Practice.
Chain of Customers:
The downstream supply chain in situations where multiple echelons exist such as manufacturer to distributor to retailer to end user.
Chain Reaction:
A chain of events described by W. Edwards Deming: improve quality, decrease costs, improve productivity, increase market with better quality and lower price, stay in business, provide jobs and provide more jobs.
Challenge and Response:
A method of user authentication. The user enters an ID and password and, in return, is issued a challenge by the system. The system compares the user's response to the challenge to a computed response. If the responses match, the user is allowed access to the system. The system issues a different challenge each time. In effect, it requires a new password for each logon.
A business leader or senior manager who ensures that resources are available for training and projects, and who is involved in project tollgate reviews; also an executive who supports and addresses Six Sigma organizational issues.
Change Agent:
An individual from within or outside an organization who facilitates change within the organization. May or may not be the initiator of the change effort.
Change Management:
The process of managing and monitoring all changes to products and processes. Change management is typically instituted to avoid risks associated with ad-hoc change, and to ensure a consistent process.
Change Order:
A document or digital record which authorizes and provides notification of a modification to a product or order.
Process of making necessary adjustments to change or switchover the type of products produced on a manufacturing line. Changeovers usually lead to downtime and for the most part companies try to minimize changeover time to help reduce costs.
  1. A method whereby a business dispenses its product via channels such as a retail or distribution channel, call center, or web-based electronic storefront.
  2. A push technology that allows users to subscribe to a website to browse offline, automatically display updated pages on their desktops, and download or receive notifications when website pages are modified. Channels are available only in browsers that support channel definitions—such as Microsoft Internet Explorer version 4.0 and above.
Channel Conflict:
This occurs when various sales channels within a company's supply chain compete with each other for the same business. An example is where a retail channel is in competition with a web based channel set up by the company.
Channel Partners:
Members of a supply chain (i.e. suppliers, manufacturers, distributors, retailers, etc.) who work in conjunction with one another to manufacture, distribute, and sell a specific product.
Channels of Distribution:
The downstream flow of products through various outlets or ‘channels’ which may consist of distributors, retail stores, on-line fulfillment, etc. Also See: Distribution Channel
Chargeback Provisions:
Terms within a contract which govern how a company can charge a supplier for failure to perform agreed upon required activities.
Charging Area:
A warehouse area where a company maintains battery chargers and extra batteries to support a fleet of electrically powered materials handling equipment. The company must maintain this area in accordance with government safety regulations.
A wedge, usually made of hard rubber or steel, that is firmly placed under the wheel of a trailer, truck, or boxcar to stop it from rolling.
Churning T
he practice of customers switching to another supplier based on special discount offers. Particularly used in the cellular telephone or credit card industries. Sometimes this term is applied to supplier management where a practice of choosing the low price vendor is emphasized over maintaining strategic relationships.
See Continuous Improvement, Catalog Item
See Cost, Insurance, Freight.
City Driver:
A motor carrier driver who drives a local route as opposed to a long-distance, intercity route.
Civil Aeronautics Board:
A federal regulatory agency that implemented economic regulatory controls over air carriers.
Carload rail service requiring shipper to meet minimum weight.
A charge made against a carrier for loss, damage, delay, or overcharge.
Class I carrier:
A classification of regulated carriers based upon annual operating revenues—motor carriers of property: > or = $5 million; railroads: > or =$50 million; motor carriers of passengers: > or =$3 million.
Class II carrier:
A classification of regulated carriers based upon annual operating revenues—motor carriers of property: $1-$5 million; railroads: $10-$50 million; motor carriers of passengers: < or = $3 million.
Class III carrier:
A classification of regulated carriers based upon annual operating revenues—motor carriers of property: < or = $1 million; railroads: < or = $10 million.
An alphabetical listing \of commodities, the class or rating into which the commodity is placed, and the minimum weight necessary for the rate discount; used in the class rate structure.
Classification Yard:
A railroad terminal area where rail cars are grouped together to form train units.
Class Rate:
A rate constructed from a classification and a uniform distance system. A class rate is available for any product between any two points.
A conventional or limited purpose entity generally restricted to providing specialized services, such as clearing funds or settling accounts.
With reference to a traditional brick-and-mortar company that has expanded its presence online. Many brick-and-mortar stores are now trying to establish an online presence but often have a difficult time doing so for many reasons. Click-and-mortar is "the successful combination of online and real world experience."
CLIN (Contract Line Items Number):
Specific items or services separately priced under a contract.
Clip Art:
A collection of icons, buttons, and other useful image files, along with sound and video files that can be inserted into documents/web pages.
A temporary storage area on a computer for cut or copied items.
See: Closed-loop corrective action.
See: Council of Supply Chain Management Professionals.
Closed-Loop Corrective Action (CLCA):
A sophisticated engineering system designed to document, verify and diagnose failures, recommend and initiate corrective action, provide follow-up and maintain comprehensive statistical records.
Closed-Loop MRP:
A production and operations environment which manages materials and production processes through a full closed loop cycle beginning with planning, proceeding through the execution process, and providing any resulting feedback and corrective actions back to the planning function to validate and improve future processes.
Cloud Computing:
An emerging computing paradigm where data and services reside in massively scalable data centers and can be ubiquitously accesses from any connected devices over the internet. Similar to the “on demand” concept of SaaS or ASP computing services with the exception of the broad nature of the network of computers.
CLS (Contractor Logistics Support):
A term in performance based logistics which refers to support in which maintenance operations for a particular military system are performed exclusively by contract support personnel.
CLS (Cost Plus):
used for transitional support while cost and resource baselines are being tracked and defined.
CLS (Fixed Price):
Used when cost and resource baselines are well-documented, cost and pricing risk are minimal, and both DoD and contractor can define price, incentives and performance outcomes with a high degree of confidence.
Cluster Picking:
Cluster picking is a methodology of picking into multiple order containers at one time. The containers couldbe totes containing order batches, discrete order shippers, or discrete order totes.
See: Credit Memo
See: Co-managed Inventory
See: Capability Maturity Model
See: Computerized Maintenance Management System
See: Certificate of Analysis
Coastal Carriers:
Water carriers that provide service along coasts serving ports on the Atlantic or Pacific oceans or on the Gulf of Mexico
A concept that begins with the idea of long term buyer-supplier relationships and assumes that organizations are uniquely and in most cases inextricably tied to their suppliers and customers.
A contract co-packer produces goods and/or services for other companies, usually under the other company's label or name. Co-Packers are more frequently seen in CPG and Foods.
Co-Managed Inventory (CMI):
A form of continuous replenishment in which the manufacturer is responsible for replenishment of standard merchandise, while the retailer manages the replenishment of promotional merchandise.
A numeric, or alphanumeric, representation of text for exchanging commonly used information. For example: commodity codes, carrier codes,
The process of detailing a new standard.
See: Cost of Goods Sold
Joint work and communication among people and systems – including business partners, suppliers, and customers – to achieve a common business goal.
Collaborative Planning, Forecasting and Replenishment (CPFR ®):
A concept that aims to enhance supply chain integration by supporting and assisting joint practices. CPFR seeks cooperative management of inventory through joint visibility and replenishment of products throughout the supply chain. Information shared between suppliers and retailers aids in planning and satisfying customer demands through a supportive system of shared information. This allows for continuous updating of inventory and upcoming requirements, essentially making the end-to-end supply chain process more efficient. Efficiency is also created through the decrease expenditures for merchandising, inventory, logistics, and transportation across all trading partners.
Collect Freight:
Freight payable to the carrier at the port of discharge or ultimate destination. The consignee does not pay the freight charge if the cargo does not arrive at the destination.
Combined Lead Time:
See: Cumulative Lead Time
Commercial Invoice:
A document created by the seller. It is an official document which is used to indicate, among other things, the name and address of the buyer and seller, the product(s) being shipped, and their value for customs, insurance, or other purposes.
Commercial Off-the-Shelf (COTS):
A computer software industry term which describes software offered for sale by commercial developers. This includes products from vendors such as SAP, Oracle, Microsoft, etc., as well as from smaller vendors.
Commercial Zone:
The area surrounding a city or town to which rates quoted for the city or town also apply; the area is defined by the ICC.
Committee of American Steamship Lines:
An industry association representing subsidized U.S. Flag steamship firms.
Committed Capability:
The level of operational capability, which is currently either part of a planned schedule or is in actual use.
Commodities Clause:
A clause that prohibits railroads from hauling commodities that they produced, mined, owned, or had an interest in.
An item that is traded in commerce. The term usually implies an undifferentiated product competing primarily on price and availability.
Commodity Buying:
The practice of grouping like purchased items into common groups which are then managed by a single buyer / agent. This practice assumes that an individual who is more focused on a range of products or services can perform that function better than someone who is novice.
Commodity Code:
A code describing a commodity or a group of commodities pertaining to goods classification. This code can be carrier tariff or regulating in nature.
Commodity Procurement Strategy:
See: Commodity Buying
Commodity Rate:
A rate for a specific commodity and its origin-destination.
Common Carrier:
Common Carrier: Any carrier engaged in the interstate transportation of persons/property on a regular schedule at published rates, whose services are for hire to the general public.
Common Carrier Duties:
Common carriers are required to serve, deliver, charge reasonable rates, and not discriminate.
Common cost:
A cost that cannot be directly assignable to particular segments of the business but that is incurred for the business as a whole.
An exempt for-hire air carrier that publishes a time schedule on specific routes; a special type of air taxi.
Communication Protocol:
The method by which two computers coordinate their communications. BISYNC and MNP are two examples.
Company Culture:
A concept which describes the psychology, attitudes, experiences, beliefs and values (personal and cultural values) of an organization. The values and customs shared by people and groups in an organization which govern how they interact with each other and with outside organizations.
Comparative Advantage:
A principle based on the assumption that an area will specialize in the production of goods for which it has the greatest advantage or least comparative disadvantage.
Competitive Advantage:
Value created by a company for its customers that clearly distinguishes it from the competition, and provides its customers a reason to remain loyal.
Competitive Benchmarking:
The practice of comparing and rating a company’s products or services against those of competitors. Also See: Benchmarking
Competitive Bid:
A price/service offering by a supplier that must compete with offerings from other suppliers.
Competitive Differentiator:
The ability to communicate what makes the company, product or service unique and to stand out from other companies, products or services within the marketplace.
Complete and On-Time Delivery (COTD):
A measure of customer service. All items on any given order must be delivered on time for the order to be considered as complete and on time
Complete Manufacture to Ship Time:
Average time from when a unit is declared shippable by manufacturing until the unit actually ships to a customer.
Meaning that products, services, processes and/or documents comply with requirements.
Compliance Checking:
The function of electronic data interchange (EDI) processing software that ensures that all transmissions contain the mandatory information demanded by the EDI standard. Compares information sent by an EDI user against EDI standards and reports any exceptions. Does not ensure that documents are complete and fully accurate, but does reject transmissions that are missing data elements or that have syntax errors.
Compliance Monitoring:
A check done by the value added network (VAN)/third party network or the translation software, to ensure the data being exchanged is in the correct format for the standard being used.
Compliance Program:
Method by which two or more EDI trading partners periodically report conformity to agreed upon standards of control and audit. Management produces statements of compliance, which summarize any exceptions and corrective action planned or taken in accordance with operating rules. Auditors produce an independent and objective statement of opinion on management statements.
Material that will contribute to a finished product but is not the finished product itself. Examples would include tires for an automobile, power supply for a personal computer, or a zipper for a ski parka. Note that what is a component to the manufacturer may be considered the finished product of their supplier.
Computer-Aided Design (CAD):
omputer-based systems for product design that may incorporate analytical and “what if” capabilities to optimize product designs. Many CAD systems capture geometric and other product characteristics for engineering-data-management systems, producibility and cost analysis, and performance analysis. In many cases, CAD-generated data
Computer Aided Engineering (CAE):
The use of computers to model design options to stimulate their performance.
Computer-Aided Manufacturing (CAM):
Computerized systems in which manufacturing instructions are downloaded to automated equipment or to operator workstations.
Computer-Aided Process Planning (CAPP):
Software-based systems that aid manufacturing engineers in creating a process plan to manufacture a product whose geometric, electronic, and other characteristics have been captured in a CAD database. CAPP systems address such manufacturing criteria as target costs, target lead times, anticipated production volumes, availability of
Computer-Based Training (CBT):
Training that is delivered via computer work­station and includes all training and testing materials.
Computer-Integrated Manufacturing (CIM):
A variety of approaches in which computer systems communicate or interoperate over a local-area network. Typically, CIM systems link management functions with engineering, manufacturing, and support operations. In the factory, CIM systems may control the sequencing of production operations, control operation of automated equipment and conveyor systems, transmit manufacturing instructions, capture data at various stages of the manufacturing or assembly process, facilitate tracking and analysis of test results and operating parameters, or a combination of these.
Computerized Maintenance Management Systems (CMMS):
Software-based systems that analyze operating conditions of production equipment -- vibration, oil analysis, heat, etc. -- and equipment-failure data, and apply that data to the scheduling of maintenance and repair inventory orders and routine maintenance functions. A CMMS prevents unscheduled machine downtime and optimizes a plant's ability to process product at optimum volumes and quality levels.
Computerized Process Simulation:
Use of computer simulation to facilitate sequencing of production operations, analysis of production flows, and layout of manufacturing facilities.
Computerized SPC:
See: Statistical Process Control
Concurrent engineering:
A cross-functional, team-based approach in which the product and the manufacturing process are designed and configured within the same time frame, rather than sequentially. Ease and cost of manufacturability, as well as customer needs, quality issues, and product-life-cycle costs are taken into account earlier in the development cycle. Fully configured concurrent engineering teams include representation from marketing, design engineering, manufacturing engineering, and purchasing, as well as supplier––and even customer––companies.
The selection and grouping of components and assemblies into a finished product.
Configuration Excellence:
Focuses on establishing and maintaining consistency of a product or service’s performance. It also looks at the functional and physical attributes of a product with its requirements, design, and operational information throughout the product’s life.
A process where the trigger to begin manufacture, final assembly or packaging of a product is an actual customer order or release, rather than a market forecast. In order to be considered a Configure-to-Order environment, less than 20% of the value-added takes place after the receipt of the order or release, and virtually all necessary design and process documentation is available at time of order receipt.
With regards to EDI, a formal notice (by message or code) from a electronic mailbox system or EDI server indicating that a message sent to a trading partner has reached its intended mailbox or been retrieved by the addressee.
Confirming Order:
A document similar to, or same as a purchase order, which is provided to a supplier as confirmation of a previous verbal purchase request.
A term used in quality management to confirm the adherence to specification of a product or service. Synonym: Compliance.
Concept of Operations. There are various uses and users for CONOPS. The primary purpose of the CONOPS is to provide a vision for an initiative or desired capability. In general, the CONOPS provides guidance to those users requiring direction and/or information on developing their own documents, schedules, milestones, and plans.
The Consolidated Rail Corporation established by the Regional Reorganization Act of 1973 to operate the bankrupt Penn Central Railroad and other bankrupt railroads in the Northeast; funding was provided by the 4-R Act of 1976.
A state in which all the members of a group support an action or decision, even if some of them don't fully agree with it.
The party to whom goods are shipped and delivered. The receiver of a freight shipment.
The act of consigning—placing a person or thing in the possession of another, but retaining ownership until the goods are sold. This may apply to shipping or sale in a store (i.e., a consignment shop). Also See: Consignment Inventory
Consignment Inventory:
1) Goods or product that are paid for when they are sold by the reseller, not at the time they are shipped to the reseller. 2) Goods or products which are owned by the vendor until they are sold to the consumer.
The party who originates a shipment of goods (shipper). The sender of a freight shipment, usually the seller.
Combining two or more shipments in order to realize lower transportation rates. Inbound consolidation from vendors is called make-bulk consolidation; outbound consolidation to customers is called break-bulk consolidation.
An enterprise that provides services to group shipments, orders, and/or goods to facilitate movement.
An association of two or more individuals, companies, organizations or governments (or any combination of these entities) with the objective of participating in a common activity or pooling their resources for achieving a common goal.
A bottleneck, obstacle or planned control that limits throughput or the utilization of capacity.
A government official residing in a foreign country, charged with representing the interests of his or her country and its nationals.
Consular Declaration:
A formal statement made to the consul of a country describing merchandise to be shipped to that consul's country. Approval must be obtained prior to shipment.
Consular Documents:
Special forms signed by the consul of a country to which cargo is destined.Consular Invoice: A document, required by some foreign countries, describing a shipment of goods and showing information such as the consignor, consignee, and value of the shipment. Certified by a consular official of the foreign country, it is used by the country's custom.
Consultative Sales:
A method of selling that emphasizes customer needs and meeting those needs with solutions combining products and/or services depending on customer profile.
Consumer-Centric Database:
Database with information about a retailer’s individual consumers, used primarily for marketing and promotion.
Consumer Packaged Goods (CPG):
Consumable goods such as food and beverages, footwear and apparel, tobacco, and cleaning products. In general, CPGs are things that get used up and have to be replaced frequently, in contrast to items that people usually keep for a long time, such as cars and furniture.
Consuming the Forecast:
The practice of allowing forecast requirements to be reduced by actual orders received. This allows a planning system to avoid duplication of demand when actual customer orders for a period are received.
Consumption Entry:
An official Customs form used for declaration of reported goods, also showing the total duty due on such transaction.
Refers to the practice of using RFID, Smart Card or other forms of Near Field Communications technology to gather data electronically without the need to actually make contact physically with the item..
  1. A “box,” typically 10 to 40 feet long, which is primarily used for ocean freight shipments. For travel to and from ports, containers are loaded onto truck chassis or on railroad flatcars.
  2. The packaging, such as a carton, case, box, bucket, drum, bin, bottle, bundle, or bag, that an item is packed and shipped in.
Container Security Initiative (CSI):
U.S. Customs program to prevent global containerized cargo from being exploited by terrorists. Designed to enhance security of sea cargo container.
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.
Contingency Planning:
Preparing to deal with risks such as environmental emergencies (e.g., floods) and non-emergency but still disruptive situations (e.g., strikes) before they occur.
Continuous Flow Distribution (CFD):
The streamlined pull of products in response to customer requirements while minimizing the total costs of distribution.
Continuous Flow Manufacturing:
A production system organized and sequenced according to the steps involved in the manufacturing process where the product moves seamlessly and continuously through the entire manufacturing process.
Continuous-Flow, Fixed-Path Equipment:
Materials handling devices that include conveyors and drag lines.
Continuous Improvement (CI):
A structured measurement driven process that continually reviews and improves processes and performance.
Continuous Move:
A practice used by some large shippers to ensure lower shipping rates and guaranteed capacity. The shipper works with a few core carriers to groups a series of one-way hauls between suppliers, manufacturing plants, distribution centers and sometimes customers into a round trip. The carriers benefit from fewer empty miles, less idle time, better asset utilization and more regular routes.
Continuous Order Release:
A process for releasing orders as soon an order is available, versus releasing all orders in batches at specific times.
Continuous Process Improvement (CPI):
The never-ending pursuit of waste elimination by creating a better workplace, better products, and greater value to society. Also See: Kaizen
Continuous Replenishment:
Continuous Replenishment is the practice of partnering between distribution channel members that changes the traditional replenishment process from distributor-generated purchase orders, based on economic order quantities, to the replenishment of products based on actual and forecasted product demand.
Continuous Replenishment Planning (CRP):
A program that triggers the manufacturing and movement of product through the supply chain when the identical product is purchased by an end user.
A legally binding agreement between two or more parties to provide specific products or services.
Contract Administration:
The activities associated with managing contract compliance.
Contract Carrier:
Carrier engaged in interstate transportation of persons/property by motor vehicle on a for-hire basis, but under continuing contract with one or a limited number of customers to meet specific needs.
Contract Manufacturing:
A relationship where a third party manufactures products that are packaged under another company's label.
Contract Provisions:
Stipulations typically located at the end of the contract document, specifying how the parties to the contract should govern their relationship and administer the contract.
One that agrees to furnish materials or services at a specified price.
Contractor Performance Assessment Report:
The difference between sales revenue and variable costs. Contribution is not the same as profit since it only considers the variable costs, it is the amount applied to fixed costs and resulting in profits.
Contribution Margin:
The fraction of sales that contributes to the offset of fixed costs. Alternatively, unit contribution margin is the amount each unit sale adds to profit: it's the slope of the Profit line.
Controllable Returns:
These are errors or problems caused by the company or a member of the company’s supply chain and often can be resolved by the company. Example of errors or problems are picking and packing errors, improper forecasting, product handling, poor quality control and lack of communication with customers.
Controlled Access:
Referring to an area within a warehouse or yard that is fenced and gated. These areas are typically used to store high-value items and may be monitored by security cameras
A materials handling device that moves freight from one area to another in a warehouse. Roller conveyors make sue of gravity, whereas belt conveyors use motors.
See: Country of Origin
A computer term. A piece of information from your computer that references what the user has clicked on, or references information that is stored in a text file on the user's hard drive (such as a username). Another way to describe cookies is to say they are tiny files containing information about individual computers that can be used by advertisers to track online interests and tastes. Cookies are also used in the process of purchasing items on the Web. It is because of the cookie that the "shopping cart" technology works. By saving in a text file, the name, and other important information about an item a user "clicks" on as they move through a shopping Website, a user can later go to an order form, and see all the items they selected, ready for quick and easy processing.
Cooperative Associations:
Groups of firms or individuals having common interests: agricultural cooperative associations may haul up to 25% of their total interstate tonnage in non-farm, non-member goods in movements incidental and necessary to their primary business.
A combination of cooperation and competition that offers rivals the counterintuitive possibility to benefit from each other's seemingly competitive activities. An example can be found in the group -buying setting where its use refers to the activity of multiple, normally competitive buying group members leveraging each other’s buying power to gain reduced pricing.
Coordinated Transportation:
Two or more carriers of different modes transporting a shipment.
The term co-product is used to describe multiple items that are produced simultaneously during a production run. Co-products are often used to increase yields in cutting operations such as die cutting or sawing when it is found that scrap can be reduced by combining multiple-sized products in a single production run. Co-products are also used to reduce the frequency of machine setups required in these same types of operations. Co-products, also known as byproducts, are also common in process manufacturing such as in chemical plants. Although the concept of co-products is fairly simple, the programming logic required to provide for planning and processing of co-products is very complicated.
See: Customer Operations Performance Center
Core Competency:
Bundles of skills or knowledge sets that enable a firm to provide the greatest level of value to its customers in a way that is difficult for competitors to emulate and that provides for future growth. Core competencies are embodied in the skills of the workers and in the organization. They are developed through -collective -learning, communication, and commitment to work across levels and functions in the organization and with the customers and suppliers. For example, a core competency could be the capability of a firm to coordinate and harmonize diverse production skills and multiple technologies. To illustrate, advanced casting processes for making steel require the integration of machine design with sophisticated sensors to track temperature and speed, and the sensors require mathematical modeling of heat transfer. For rapid and effective development of such a process, materials scientists must work closely with machine designers, software engineers, process specialists, and operating personnel. Core competencies are not directly related to the product or market.
Core Process:
Sometimes called ‘core business’ this is the capability that is considered central to a company’s competitive strategy.
Corporate Strategic Profit Model:
See: Strategic Profit Model.
Corrective Action:
A change implemented to address a weakness identified in a management system, usually brought to the company’s attention by a customer complaint of nonconformities identified during an internal audit or adverse or unstable trends in product and process monitoring identified by the statistical process control (SPC).
Corrective Action Reporting System:
See: Corrective Action
Corrective Action Review (CAR):
See: Corrective Action
Cost Accounting:
A management accounting practice that establishes budget and actual cost of operations, processes, departments or product and the analysis of variances, profitability or use of funds. Managers use cost accounting to support decision-making to cut a company's costs and improve profitability.
Cost Allocation:
An accounting practice which assigns indirect costs such as overhead to products or services using a known factor such as pieces produced or direct labor costs/hours.
Cost Center:
In accounting, a sub-unit in an organization that is responsible for costs.
Cost Driver:
In accounting, any situation or event that causes a change in the consumption of a resource, or influences quality or cycle time. An activity may have multiple cost drivers. Cost drivers do not necessarily need to be quantified; however, they strongly influence the selection and magnitude of resource drivers and activity drivers.
Cost Driver Analysis:
In cost accounting, the examination, quantification, and explanation of the effects of cost drivers. The results are often used for continuous improvement programs to reduce throughput times, improve quality, and reduce cost.
Cost Element:
In cost accounting, the lowest level component of a resource, activity, or cost object.
Cost, Insurance, Freight (CIF):
A trade term requiring the seller to arrange for the carriage of goods by sea to a port of destination, and provide the buyer with the documents necessary to obtain the goods from the carrier.
Cost Management:
The management and control of activities and drivers to calculate accurate product and service costs, improve business processes, eliminate waste, influence cost drivers, and plan operations. The resulting information will have utility in setting and evaluating an organization’s strategies.
Cost of Capital:
The cost to borrow or invest capital.
Cost of Goods Sold (COGS):
The amount of direct materials, direct labor, and allocated overhead associated with products sold during a given period of time and determined in accordance with Generally Accepted Accounting Principles (GAAP)
Cost of Lost Sales:
The forgone profit associated with a stock-out.
Costs per Unit Moved:
A measure to calculate the cost of moving one unit of product.
(Total Costs to Move Units)/ (Total Number of Units Moved)
Cost Recovery Rate (CRR):
provides the funding stream for a wide variety of program logistics support functions
Cost of Lost Sales:
The forgone profit associated with a stockout.
A chain of activities required to get a company’s products or services into their customers’ stores and onto their shelves. This includes order taking, picking and freighting the order, arranging promotions by sales reps, processing credits, and merchandising the product.
Cost Trade-off:
The interrelationship among system variables indicates that a change in one variable has cost impact upon other variables. A cost reduction in one variable may be at the expense of increased cost for other variables, and vice versa.
Cost Variance:
In term used in cost accounting to describe the difference between actual cost and what was budgeted or expected.
See: Complete and On-Time Delivery
See: Commercial off-the-shelf
Courier Service:
A fast, door-to-door service for high-valued goods and documents; firms usually limit service to shipments of 50 pounds or less.
Council of Logistics Management (CLM):
See Council of Supply Chain Management Professionals
Council of Supply Chain Management Professionals (CSCMP):
The CSCMP is a not-for-profit professional business organization consisting of individuals throughout the world who have interests and/or responsibilities in logistics and supply chain management, and the related functions that make up these professions. Its purpose is to enhance the development of the logistics and supply chain management professions by providing these individuals with edu­cational opportunities and relevant infor­mation through a variety of programs, services, and activities.
Count Back:
A process in which order pickers selecting full cases from pallet rack locations perform an immediate cycle count at the completion of the pick for that location, using a Radio Frequency or voice terminal. The use of the count-back program is just one component of being able to prove perfect order picking and the highest degree of inventory accuracy
Country of Origin (COO):
The country of manufacture, production or growth from where a product comes.
CPAF (Cost Plus Award-Fee):
A type of PBL contract pricing that combines a cost basis with an award fee feature. The incentive feature allows a base fee to be adjusted based on success in meeting target performance goals.
See: Collaborative Planning Forecasting and Replenishment
CPIF (Cost Plus Incentive-Fee):
A type of PBL contract pricing that combines a cost basis with an incentive fee feature. The incentive feature allows a base fee to be adjusted based on the relationship of actual costs to target costs.
See: Consumer Packaged Goods
See: Continuous Process Improvement
Cradle to Grave:
See: Lifecycle
Credit Level:
The amount of pur­chasing credit a customer has available. Usually defined by the internal credit department and re­duced by any existing unpaid bills or open orders.
Credit Memo (CM):
A document issued to provide authorization for a customer account credit, typically due to product returns, billing errors or other adjustments.
Critical Differentiators:
This is what makes an idea, product, service or business model unique.
Critical success factors (CSF):
Necessary conditions for success that can be measured quantitatively for effectiveness, economy, and efficiency; those few areas where satisfactory performance is essential in order for a business to succeed; characteristics, conditions, or variables that have a direct influence on a customer's satisfaction with a specific business process; and the set of activities that must be done correctly if a vision is to be achieved.
Critical Value Analysis:
A modified ABC analysis in which a subjective value of criticalness is assigned to each item in the inventory.
Cross Functional:
A term used to describe a process or an activity that crosses the boundary between functions. A cross functional team consists of individuals from more than one organizational unit or function.
Cross Functional “Process” Metric:
A number resulting from an equation, showing the output of a process that spans departments. These types of measures are also known as a process measures because they span across the breadth of a process, regardless for functional/departmental segregation within the process. Example: Perfect Order Index.
Cross Sell:
The practice of attempt¬ing to sell additional products to a customer during a sales call. For example, when the customer service representative (CSR) presents a camera case and accessories to a customer that is ordering a camera.
Material flow activity where materials are shipped to customers from a secondary shipping point rather than from a preferred shipping point.
In cost accounting, the inequitable assignment of costs to cost objects, which leads to over costing or under costing them relative to the amount of activities and resources actually consumed. This may result in poor management decisions that are inconsistent with the economic goals of the organization.
Crossdock / Cross Docking (XDK):
A distribution system in which merchandise received at the warehouse or distribution center is not put away, but instead is readied for shipment to retail stores. Cross docking requires close synchronization of all inbound and outbound shipment movements. By eliminating the put-away, storage and selection operations, it can significantly reduce distribution costs.
See: Continuous Replenishment Program
Critical Success Factor (CSF):
Those activities and/or processes that must be completed and/or controlled to enable a company to reach its goals.
See: Customer Relationship Management
See: Cost Recovery Rate
See: Council of Supply Chain Management Professionals.
See: Critical Success Factor
See: Container Security Initiative
See: Customer Service Representative
See: Capacity to Promise
See: Customs-Trade Partnership Against Terrorism
The volume of the shipment or package (the product of the length x width x depth).
Cubic volume of space being used or available for shipping or storage.
Cube Utilization:
The use of space within a storage area, trailer, or container. Cube utilization is generally calculated as a percentage of total space or of total "usable" space. Note that there is a point at which too high percent utilization can create inefficiency.
Cubic Space:
The measurement of total space or volume available or required in transportation and warehousing. The floor space multiplied by the height.
Cumulative Available-to-Promise:
A calculation which yields future availability based on planned production or purchases and consumption across multiple future periods. Also See: Available-to-Promise
Cumulative Lead Time:
The total time required to source components, build and ship a product.
Cumulative Source/Make Cycle Time:
The cumulative internal and external lead time to manufacture shippable product, assuming that there is no inventory on-hand, no materials or parts on order, and no prior forecasts existing with suppliers. (An element of Total Supply Chain Response Time)Calculation: The critical path along the following elements: Total Sourcing Lead Time, Manufacturing Order Release to Start Manufacturing, Total Manufacture Cycle Time (Make-to-Order, Engineer-to-Order, Configure/Package-to-Order) or Manufacture Cycle Time (Make-to-Stock), Complete Manufacture to Ship TimeNote: Determined separately for Make-to-Order, Configure/Package-to-Order, Engineer-to-Order, and Make-to-Stock products
Currency Adjustment Factor (CAF):
An added charge assessed by water carriers for currency value changes.
Current Good Manufacturing Practices (CGMP):
Regulations enforced by the U.S. Food and Drug Administration for food and chemical manufacturers and packagers.
1) In distribution, the trading partner or reseller (i.e., Wal-Mart, Safeway, or CVS), and 2) In direct-to-consumer, the end customer or user.
Customer Acquisition or Retention:
The rate by which new customers are acquired, or existing customers are retained. A key selling point to potential marquis partners. Also See: Marquis Partner
Customer Driven:
The end user, or customer, motivates what is produced or how it is delivered.
Customer Facing:
Those personnel or activities whose jobs entail actual contact with the customer.
Customer Interaction Center:
See Call Center
Customer Operations Performance Center (COPC):
Call center consulting, certification, trainingandbenchmarking company.
Customer Order:
An actual order, not a forecast or planned order, from a customer for specific products or services.
Customer/Order Fulfillment Process:
The typical business process which includes receipt and processing of a customer order through delivery.
Customer Profitability:
The practice of placing a value on the profit gen­erated by business done with a particular customer.
Customer Receipt of Order to Installation Complete:
Average lead-time from receipt of goods at the customer to the time when installation (if applicable) is complete, including the following sub-elements: time to get product up and running, and product acceptance by customer. (An element of Order Fulfillment Lead Time)Note: Determined separately for Make-to-Order, Configure/Package-to-Order, Engineer-to-Order, and Make-to-Stock products.
Customer Relationship Management (CRM):
This refers to information systems that help sales and marketing functions, as opposed to the Enterprise Resource Planning (ERP), which is for back-end integration.
Customer Segmentation:
Dividing customers into groups based on specific criteria, such as products purchased, customer geographic location, etc.
Customer Service:
Activities between the buyer and seller that enhance or facilitate the sale or use of the seller’s products or services.
Customer Service Ratio:
See: Percent of Fill
Customer Service Representative (CSR):
An individual who provides customer support via telephone in a call center environment.
Customer Signature/Authorization to Order Receipt:
Average lead time from customer authorization of an order to the time that that order is received and order entry commences. This is an element of order fulfillment lead time.Note: Determined separately for Make-to-Order, Configure/Package-to-Order, Engineer-to-Order, and Make-to-Stock products.
Customer Wait Time (CWT):
The total elapsed time between issuance of a customer order and satisfaction of that order.
Customer-Supplier Partnership:
An extended relationship between buyers and sellers based on confidence, credibility, and mutual benefit. The buyer, on its part, provides long-term contracts and assurance of only a small number of competing suppliers. In reciprocation, the seller implements customer's suggestions and commits to continuous improvement in quality of product and delivery
Creating a product from existing components into an individual order. Synonym: Build to Order.
Customs and Border Protection, U.S. (CBP):
Formed during the creation of the Department of Homeland Security in 2003, CBP consists primarily of the customs inspection function formerly performed by the U.S. Customs Service as part of the Department of Treasury, the immigration inspection function formerly performed by the Immigration and Naturalization Service (INS), and the Border Patrol, formerly part of the Department of Justice
Customs House Broker:
A business firm that oversees the movement of international shipments through customs and ensures that the documentation accompanying a shipment is complete and accurate.
Customs-Trade Partnership against Terrorism (C-TPAT):
A joint government/business initiative to build cooperative relationships that strengthen overall supply chain and border security. The voluntary program is designed to share information that will protect against terrorists' compromising the supply chain.
See: Hundredweight, Customer Wait Time
Cycle Counting:
An inventory control and management practice that refers to a process of regularly scheduled inventory counts (usually daily) that "cycles" through your inventory. Users determine how often certain items or locations are counted using frequency or dollar values segregated into “ABC” categories. Cycle counting can eliminate the need for wall to wall physical counts and can maintain a higher level of on-going accuracy.
Cycle Inventory:
An inventory system where counts are performed continuously, often eliminating the need for an annual overall inventory. It is usually set up so that A items are counted regularly (i.e., every month), B items are counted semi-regularly (every quarter or six months), and C items are counted perhaps only once a year.
Cycle Time:
The amount of time it takes to complete a business process.
Cycle Time to Process Excess Product Returns for Resale:
The total time to process goods returned as Excess by customer or distribution centers, in preparation for resale. This cycle time includes the time a Return Product Authorization (RPA) is created to the time the RPA is approved, from Product Available forPick-up to Product Received and from Product Receipt to Product Available for use.
Cycle Time to Process Obsolete and End-of-Life Product Returns for Disposal:
The total time to process goods returned as Obsolete and End of Life to actual Disposal. This cycle time includes the time a Return Product Authorization (RPA) is created to the time the RPA is approved, from Product Available for Pick-up to Product Received and from Product Receipt to Product Disposal/Recycle.
Cycle Time to Repair or Refurbish Returns for Use:
The total time to process goods returned for repair or refurbishing. This cycle time includes the time a Return Product Authorization (RPA) is created to the time the RPA is approved, from Product Available for Pick-up to Product Received, from Product Receipt to Product Repair/Refurbish begin, and from Product Repair/Refurbish begin to Product Available for use.
Cyclical Demand:
A situation where demand patterns for a product run in cycles driven by seasonality or other predictable factors.