See: Enterprise Application Integration
European Article Numbering/ Uniform Code Council (now the European office of GS1). The EAN.UCC System provides identification standards to uniquely identify trade items, logistics units, locations, assets, and service relations worldwide. The identification standards define the construction of globally-unique and unambiguous numbers. See: GS1
EAN.UCC Information Network (EIN):
The EAN International and the Uniform Code Council network for the exchange of Global Data Synchronization Network (GDSN), master data between partners of the global supply and demand chain which is now a part of GS1.
Early Supplier Involvement (ESI):
The suppler management strategy which involves suppliers during the beginning of the product design process to draw on their experience and knowledge in an effort to better designs and higher quality results.
Earnings Before Interest and Taxes (EBIT):
A measure of a company's earning power from ongoing operations, equal to earnings (revenues minus cost of sales, operating expenses, and taxes) before deduction of interest payments and income taxes. Also called operating profit.
See: Earnings Before Interest and Taxes
See: Electronic Commerce
See: Engineering Change Order
See: Electronic Commerce
Economic Order Quantity (EOQ):
An inventory model that determines how much to order by determining the amount that will meet customer service levels while minimizing total ordering and holding costs.
Economic Value Added (EVA):
A measurement of shareholder value as a company's operating profits after tax, less an appropriate charge for the capital used in creating the profits.
Economy of Scale:
The cost advantages that a business obtains due to expansion. They are factors that cause a producer’s average cost per unit to fall as scale is increased.
See: Engineering Change Proposal
See: Efficient Consumer Response
See: Electronic Data Interchange
See: Electronic Data Interchange Association
An abbreviation of the Electronic Data Interchange for Administration, Commerce, and Transport. The United Nations EDI standard.
EDI Standards:
Criteria that define the data content and format requirements for specific business transactions (e.g.., purchase orders). Using standard formatting allows companies to exchange transactions with multiple trading partners easily. Also see: American National Standards Institute, Uniform Code Council
EDI Transmission:
A functional group of one or more EDI transactions that are sent to the same location, in the same transmission, and are identified by a functional group header and trailer.
Efficient Consumer Response (ECR):
A demand driven replenishment system designed to link all parties in the logistics channel to create a massive flow-through distribution network. Replenishment is based upon consumer demand and point of sale information.
See: Electronic Funds Transfer
See: EAN.UCC Information Network
Electronic Commerce (EC):
Also written as e-commerce. Conducting business electronically via traditional EDI technologies, or online via the Internet. In the traditional sense of selling goods, it is possible to do this electronically because of certain software programs that run the main functions of an e-commerce website, such as product display, online ordering, and inventory management. The definition of e-commerce includes business activity that is business-to-business (B2B), business-to-consumer (B2C).
Electronic Data Interchange (EDI):
Inter-company, computer-to-computer transmission of business information in a standard format. For EDI purists, "computer-to-computer" means direct transmission from the originating application program to the receiving, or processing, application program. An EDI transmission consists only of business data, not any accompanying verbiage or free-form messages. Purists might also contend that a standard format is one that is approved by a national or international standards organization, as opposed to formats developed by industry groups or companies.
Electronic Data Interchange Association (EDIA):
A national body that propagates and controls the use of EDI in a given country. All EDIAs are nonprofit organizations dedicated to encouraging EDI growth. The EDIA in the United States was formerly the Transportation Data Coordinating Committee TDCC and administered the development of standards in transportation and other industries.
Electronic Funds Transfer (EFT):
Refers to the transactions and related computer-based systems used to perform financial (typically banking) transactions between organizations and accounts electronically.
Electronic Mail (E-Mail):
The computer-to-computer exchange of messages. E-mail is usually unstructured (free-form) rather than in a structured format. X.400 has become the standard for e-mail exchange.
Electronic Product Code (EPC or ePC):
An identification scheme for universally identifying physical objects via RFID tags and other means. Standardized EPC data consists of among other partitions of data, an EPC Manager Number, an object class identification, a filter value, and a serial number used to uniquely identify the instance of the object. Information on the tag may include asset numbers, container code numbers, locations, Global Trade Item Numbers (GTIN), etc. The EPC is a 96-bit tag which unlike a UPC number which only provides information specific to a group of products, gives each product its own specific identifying number, providing greater accuracy in tracking. EPC standards are managed by the global standards organization known as GS1.
Electronic Signature:
A form of authentication that provides identification and validation of a transaction by means of an authorization code identifying the individual or organization
Elkins Act:
An amendment to the Interstate Ccommerce Act that prohibits giving rebates.
See: Electronic Mail
A web based service which allows individuals or companies to offer products and services or make bids to buy products or services. For example Covisint is the consortium and the name of the automotive eMarketplace.
A prohibition upon exports or imports, either with specific products or specific countries.
Denotes information gained by means of observation, experience, or experiment. A central concept in science and the scientific method is that all evidence must be empirical, or empirically based, that is, dependent on evidence or consequences that are observable by the senses.
Employee Performance Management (EPM):
A system to develop, monitor, provide feedback and train employees using performance measures to assess their overall development and understanding of tasks.
The process of increasing the capacity of individuals or groups to make choices and to transform those choices into desired actions and outcomes. In the workplace empowered employees have the authority to make decisions and take action in their work areas without prior approval.
The transformation of readable text into coded text for security purposes.
End Item:
The top level item in a bill of materials. Typically a finished product which can be sold as a completed item or repair part. Synonym: Finished Goods Inventory.
Planning and execution at the end of the life of a product. The challenge is making just the right amount to avoid: 1) ending up with excess, which has to be sold at great discounts or scrapped, or 2) ending up with shortages before the next generation is available.
End-of-Life Inventory:
Inventory on hand that will satisfy future demand for products that are no longer in production at your entity. This differs from obsolete inventory because there is an expected future requirement for these products.
Engineering Change:
The formal revision process for engineering drawings/designs in order to modify or correct a part. This can also be called an engineering change order.
Engineering Change Order (ECO):
A documented and approved revision to a product or process specification.
Engineering Change Proposal (ECP):
A proposal submitted by the seller in response to a buyer request for an ECP to change the existing contract . It is an exploratory activity. Only the buyer can initiate the request for an ECP. This activity is usually preceded by a request for change. The user, buyer, or the seller can initiate a request for change to the contract.
A process in which the manufacturing organization must first prepare (engineer) significant product or process documentation before manufacture may begin.
A term used for goods in transit or on the way to a destination.
Enterprise Application Integration (EAI):
A computer term for the tools and techniques used in linking ERP and other enterprise systems together. Linking systems is key for e-business. Gartner say 'firms implementing enterprise applications spend at least 30% on point-to-point interfaces'. Also sometimes referred to as “middleware”.
Enterprise-Wide ABM:
A management information system that uses activity-based information to facilitate decision making across an organization.
Enterprise Resource Planning (ERP) System:
A class of software for planning and managing “enterprise-wide” the resources needed to take customer orders, ship them, account for them and replenish all needed goods according to customer orders and forecasts. Often includes electronic commerce with suppliers. Examples of ERP systems are the application suites from SAP, Oracle, and other suppliers.
An EDI management software function that groups all documents of the same type, or functional group, and bound for the same destination into an electronic envelope. Enveloping is useful where there are multiple documents such as orders or invoices issued to a single trading partner that need to be sent as a packet.
Environmental Health and Safety (EH&S):
The category of processes, procedures and regulations related to addressing the needs of maintaining environmental quality standards for health and safety. Includes the RoHS (Restriction of Hazardous Substances) and WEEE (Waste Electrical and Electronic) standards. Frequently referred to as a part of “corporate citizenship”.
Environmental Protection Agency (EPA):
A federal agency in the United States Government that is tasked with regulating chemicals and protecting human health by safeguarding the natural environment (air, water, and land).
Environmentally Sensitive Engineering:
A design process where issues related to disposal or recycling of packaging and used products is considered. May be part of a regulatory requirement associated with programs such as RoHS or WEEE to address compounds that are hazardous to the environment.
See: End-of-Life.
See: Economic Order Quantity
EPC or ePC:
See: Electronic Product Code
See: Employee Performance Management
An electronic document which satisfies a pedigree requirement. The primary purpose of an epedigree is to protect consumers from contaminated medicine or counterfeit drugs.
A computer term. Encapsulated Postscript. An extension of the PostScript graphics file format developed by Adobe Systems. EPS lets PostScript graphics files be incorporated into other documents.
Export Processing Zone. See: Free Trade Zone
The rolling stock carriers use to facilitate the transportation services that they provide, including containers, trucks, chassis, vessels, and airplanes, among others.
Equipment I.D.:
An identifier assigned by the carrier to a piece of equipment. See also Container ID.Equipment Positioning: The process of placing equipment at a selected location.
The science of creating workspaces and products which are human friendly to use.
See: Enterprise Resources Planning System
See: Evaluated Receipts Settlement
See: Early Supplier Involvement
The Estimated Time of Arrival.
The Estimated Time of Departure.
A computer term for the most commonly used type of local area network (LAN) communication protocol using coaxial or twisted pair wiring.
Ethical Standards:
A set of guidelines for proper conduct by business professionals.
European Article Number (EAN):
A defined numbering mechanism used in Europe to uniquely identify every retail product and packaging option. The EAN is similar in concept and design to the UPC code and is usually what the barcode represents on goods. Also See: Uniform Product Code.
See: Economic Value Added
Evaluated Receipts Settlement (ERS):
A process for authorizing payment for goods based on actual receipts with purchase order data, when price has already been negotiated. The basic premise behind ERS is that all of the information in the invoice is already transmitted in the shipping documentation. Therefore, the invoice is eliminated and the shipping documentation is used to pay the vendor.
Exception-Based Processing:
A computer term for applications that automatically highlight particular events or results which fall outside pre-determined parameters. This saves considerable effort by automatically finding problems and alerting the right persons. An example would be where a shortage of an item on a purchase order receipt would create an automatic notification of the purchasing agent for follow-up.
Exception Message:
See: Action Message
Exception Rate:
A deviation from the class rate; changes (exceptions) made to the classification.
Excess and Obsolescence (E&O):
The accounting value assigned to the cost associated with inventory that is disposed of as being excess or obsolete.
Exclusive Patronage Agreements:
A shipper agrees to use only member liner firms of a conference in return for a 10% to 15% rate reduction.
Exclusive Use:
Carrier vehicles that are assigned to a specific shipper for its exclusive use.
Executive Dashboard:
A series of cross-functional metrics that span the performance of the entire company and indicate the overall health of the company. Usually an Executive Dashboard includes the top KPIs for the company – and when possible is limited to the ‘vital few’ that fit on a one page summary.
Refers to a model or practice that should be imitated.
Exempt Carrier:
A for-hire carrier that is free from economic regulation. Trucks hauling certain commodities are exempt from Interstate Commerce Commission economic regulation. By far the largest portion of exempt carriers transports agricultural commodities or seafood.
1) Moving shipments through regular channels at an accelerated rate. 2) To take extraordinary action because of an increase in relative priority, perhaps due to a sudden increase in demand. Synonym: Stockchase.
Expert System:
A computer program that mimics a human expert.
See: Backflush
Exponential Smoothing Forecast:
A statistical analysis technique that can be applied to time series data, either to produce smoothed data for presentation, or to make forecasts. The time series data themselves are a sequence of observations. The observed phenomenon may be an essentially random process, or it may be an orderly, but noisy, process.
1) In logistics, the movement of products from one country to another. For example, significant volumes of cut flowers are exported from The Netherlands to other countries of the world.2) A computer term referring to the transfer of information from a source (system or database) to a target.
Export Broker:
An enterprise that brings together buyer and seller for a fee, then eventually withdraws from the transaction.
Export Compliance:
Complying with rules for exporting products, including packaging, labeling, and documentation
Export declaration:
A document required by the Department of commerce that provides information as to the nature, value, etc., of export activity.
Export License:
A document secured from a government authorizing an exporter to export a specific quantity of a controlled commodity to a certain country. An export license is often required if a government has placed embargoes or other restrictions upon exports.
Export Processing Zone (EPZ):
A term used in various countries similar to a Free Trade Zone. See: Free Trade Zone
Export sales contract:
The initial document in any international transaction; it details the specifics of the sales agreement between the buyer and seller.
Exporter Identification Number (EIN):
A number required for the exporter on the Shipper's Export Declaration. A corporation may use their Federal Employer Identification Number as issued by the IRS; individuals can use their Social Security Numbers.
A term used to describe those products produced in one geography (typically a country) and shipped / sold in another. Also See: Export
Extended Enterprise:
Refers to the concept where an organization’s internal capabilities are extended by virtue of their supply chain partners to form a larger logical entity.
Extensible Markup Language (XML):
A computer term referring to a general-purpose specification for creating custom markup languages which specifies lexical grammar and parsing requirements. The term extensible is used to indicate that a markup-language designer has significant freedom in the choice of markup elements.
External Factory:
Refers to the concept where an organization’s internal productions capabilities are extended through the addition those of its suppliers.
External Registration Company:
A company that performs audits against an established set of standards, i.e. ISO 9001:2008.
A computer term describing a private network (or a secured link on the public internet) that links separate organizations and that uses the same software and protocols as the Internet.Used for improving supply chain management. For example, extranets are used to provide access to a supply chain partner’s internal inventory data which is not available to unrelated parties. Antonym: Intranet.
Extrinsic Forecast Method:
A forecast tied to a linked indicator outside the company instead of using internal past product demand history. It normally uses a leading indicator such as housing starts or weather pattern changes that have been demonstrated in the past to have a predictive effect on the company's demand.
Ex Works (EXW):
An international trade term (Incoterms, International Chamber of Commerce) requiring the seller to deliver goods at his or her own place of business. All other transportation costs and risks are assumed by the buyer.