V

Validation:
To check whether a document is the correct type for a particular EDI system, as agreed upon by the trading partners, in order to determine whether the document is going to or coming from an authorized EDI user.
Value Added:
Increased or improved value, worth, functionality or usefulness.
Value-Added Network (VAN):
A company that acts as a clearing-house for electronic transactions between trading partners. A third-party supplier that receives EDI transmissions from sending trading partners and holds them in a “mailbox” until retrieved by the receiving partners.
Value-Added Productivity Per Employee:
Contribution made by employees to total product revenue minus the material purchases divided by total employment. Total employment is total employment for the entity being surveyed. This is the average full-time equivalent employee in all functions, including sales and marketing, distribution, manufacturing, engineering, customer service, finance, general and administrative, and other. Total employment should include contract and temporary employees on a full-time equivalent (FTE) basis.Calculation: Total Product Revenue-External Direct Material / [FTE's]
Value-Adding/Nonvalue-Adding:
Assessing the relative value of activities according to how they contribute to customer value or to meeting an organization’s needs. The degree of contribution reflects the influence of an activity’s cost driver(s).
Value Analysis:
A method to determine how features of a product or service relate to cost, functionality, appeal and utility to a customer (i.e., engineering value analysis). Also see: Target Costing
Value Based Return (VBR):
A measure of the creation of value. It is the difference between economic profit and capital charge.
Value Chain:
A series of activities, which combined, define a business process; the series of activities from manufacturers to the retail stores that define the industry supply chain.
Value Chain Analysis:
A method to identify all the elements in the linkage of activities a firm relies on to secure the necessary materials and services, starting from their point of origin, to manufacture, and to distribute their products and services to an end user.
Value-Engineering:
A systematic method to improve the value of products or services by examining the function of the product or service.
Value Engineering Change Proposal (VECP):
A change proposal resulting from an organized effort directed at analyzing the function of Department of Defense systems, equipment, facilities, procedures, and supplies for the purpose of achieving the required function at the lowest total cost of effective ownership, consistent with requirements for performance, reliability, quality, and maintainability
Value-of-Service Pricing:
Pricing according to the value of the product being transported; third-degree price discrimination; demand-oriented pricing; charging what the traffic will bear.
Value of Transfers:
The total dollar value (for the calendar year) associated with movement of inventory from one “bucket” into another, such as raw material to work-in-process, work-in-process to finished goods, plant finished goods to field finished goods or customers, and field finished goods to customers. Value of Transfers is based on the value of inventory withdrawn from a certain category and is often approached from a costing perspective, using cost accounts. For example, Raw MaterialsValue of Transfers is the value of transfers out of the raw material cost accounts (you may have cost centers associated with inventory locations, but all "raw ingredients" usually share common cost accounts or can be rolled up into one financial view). The same goes for WIP. Take the manufacturing cost centers and look at the total value of withdrawals from those cost centers. While Average Gross Inventory represents the value of the inventory in the cost center at any given time, the Value of Transfers is the total value of inventory leaving the cost center during the year. The value of transfers for Finished Goods is, in theory, equivalent to COGS.
Value Proposition:
What the supply chain member offers to other members. To be truly effective, the value proposition has to be two-sided; a benefit to both buyers and sellers.
Value Stream:
All activities, both value added and non-value added, required to bring a product from raw material state into the hands of the customer, bring a customer requirement from order to delivery and bring a design from concept to launch.
Value Stream Mapping:
A pencil and paper tool used in two stages: 1. Follow a product's production path from beginning to end and draw a visual representation of every process in the material and information flows. 2. Then draw a future state map of how value should flow. The most important map is the future state map.
VAN:
See: Value-Added Network
Variable Cost:
A cost that fluctuates with the volume or activity level of business.
VBR:
See: Value Based Return
VECP:
See: Value Engineering Change Proposal
Vehicle Telemetric Systems:
A system comprised of vehicle interface units (VIUs), wireless gateways, and a central host that monitors and tracks a driver and his vehicle performance in an effort to provide a higher level of security.
Velocity:
Rate of product movement through a warehouse
Vendor:
The manufacturer or distributor of an item or product line. Also see: Supplier
Vendor Code:
A unique identifier—usually a number and sometimes the company's data universal numbering system (DUNS) number—assigned by a customer for the vendor it buys from. For example, a grocery store chain buys Oreos from Nabisco. The grocery store chain, for accounting purposes, identifies Nabisco as Vendor #76091. One company can have multiple vendor codes. For example, Welch's Foods sells many different products: frozen grape juice concentrate, chilled grape juice, bottled grape juice, and grape jelly. Because each of these items is a different type of product (frozen food, chilled food, beverages, dry food) it may have a different buyer at the grocery store chain requiring a different vendor code for each product line.
Vendor-Managed Inventory (VMI):
The practice of retailers allowing their suppliers to take responsibility for determining supply order size and timing usually based on receipt of retail POS and inventory data from the retailer. The goal is to increase retail inventory turns and reduce stock outs. It may or may not involve consign-ment of inventory (supplier ownership of the inventory located at the customer location).
Vendor Owned Inventory (VOI):
See: Consignment Inventory
Vertical Hub/Vertical Portal:
Serving one specific industry. Vertical portal websites that cater to consumers within a particular industry. Similar to the term "vertical industry", these websites are industry specific, and like a portal, they make use of Internet technology by using the same kind of personalization technology. In addition to industry specific vertical portals that cater to consumers, another definition of a vertical portal is one that caters solely to other businesses.
Vertical Integration:
A style of management control. Vertically integrated companies are united through a hierarchy with a common owner. Usually each member of the hierarchy produces a different product or (market-specific) service, and the products combine to satisfy a common need. Vertical integration defines the degree to which a firm owns its upstream suppliers and its downstream buyers it is typified by one firm engaged in different parts of production (e.g. growing raw materials, manufacturing, transporting, marketing, and/or retailing).
Vessel:
A floating structure designed for transport.
Vested Outsourcing (VO):
An outsourcing relationship where companies and their suppliers become vested in each other’s success, creating a true win-win solution. An agreement based on desired outcomes, measurable objectives that focus on what will be accomplished as a result of the work performed.
VICS:
Voluntary Inter-industry Commerce Standards. The retail industry standards body responsible for the CPFR standard, among other things, VICS is a not-for-profit association whose mission is to take a global leadership role in the development of business guidelines and specifications; facilitating implementation through education and measurement, resulting in the improvement of the retail supply chain efficiency and effectiveness, which meet or exceed customer and consumer expectations.
Viral Marketing:
The concept of embedding advertising into web portals, pop-ups and as e-mail attachments to spread the word about products or services that the target audience may not otherwise have been interested in.
Virtual Corporation:
  1. A business that has few employees and outsources nearly all its work.
  2. A consortium of businesses that pursue a common goal. For example, several companies work together to produce a technologically advanced product.
Visible Skills Matrices:
See: Skills Matrix
Visibility:
The ability to access or view pertinent data or information as it relates to logistics and the supply chain, regardless of the point in the chain where the data exists.
Vision:
The vision of the business is a statement which reflects the aspirations of its management and specifies its intended direction or future destination
VMI:
See: Vendor Managed Inventory
VO:
See: Vested Outsourcing
VOI:
See: Vendor Owned Inventory
Voice Activated or Voice Directed:
Systems which guide users such as warehouse personnel via voice commands
Voice of The Customer:
A business term to describe the process of capturing a customer's requirements using market research to determine a customer’s wants and needs. This is then organized into a hierarchical structure and prioritized by importance and satisfaction with current alternatives.