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e DC, reduced damage, and improved instock positions. MRP: Materials requirement planning. Production operation planning system that provides scheduling, inventory management, and materials billing capabilities. MRPII refers to a more recent, expanded application that also considers issues such as purchasing and forecasting. Open To Buy: Control on or budget for the purchase of certain items; as purchases are made, the dollars not spent are “the open to buy” when pared to the dollars allotted to the total buy of an item. Optimization: The actions taken through use of certain skills and tools to make a pany39。s suppliers into a unified supply chain. Council of Logistics Management definition: “Logistics is that part of the supply chain process that plans, implements, and controls the efficient, effective flow and storage of goods, services, and related information from the point of origin to the point of consumption in order to meet customers39。 ECR: Efficient consumer response; involves examining supply chain and trade practices to identify opportunities for changes in practices or technology to make the supply chain more petitive. Term originates in the grocery industry where it refers to a strategy in which distributors and suppliers work cooperatively to bring better value to customers by jointly focusing on efficiency in the total grocery supply chain. Accurate information and highquality product flows are aided by a paperless system between the manufacturing line and point of sale. Objective is to reduce inventories and cost in the supply chain by matching the flow of product to consumer demand. The most advanced ECR strategy across the total supply chain. Efulfillment Center (eFC) : A warehouse with more than a traditional WMS. The ewarehouse receives goods, operates as a crossdock, and orders are picked, valueadded processing performed; orders packed, and mergeintransit utilized. Other key attributes include a “returns” program and a quality assurance program. All of this should be supported by dynamic customer service. Efulfillment: The process that supports a website order from click to customer. EProcurement: There are three ways to build this solution: (1) use of suppliers Websites whereby purchaser connects directly with individual supplier sites, (2) use of procurement software and the inclusion of existing s well as new vendors, and (3) vertical trading network that operates between purchaser and suppliers. Flow Modeling: This is a tool to assist logistics managers in the management of cycle time at the various levels of the pany across all ponents in the supply chain. This tool identifies both the time and cost associated with a process. Components include cumulative leadtime analysis, cumulative value analysis, schedules, and a structure built that reflects the relationships of the ponents. Gain Sharing: During the life of an outsourced agreement, a third party provider shares in the savings generated through continuous improvement. Gantt Chart: A project tracking tool used to identify all activities that need to be in progress during a period (weekly, monthly) in order to assure successful pletion of a project. GPO: Abbreviation for Group Purchasing Organization. Hospital groups purchase through GPOs to maximize pricing levels and distribution services. Green Logistics: A system designed for produce (fruits and vegetables) wherein the produce arrives storeready at a distribution center packed in reusable trays; eliminating use of corrugated packaging and quality is improved with less damage. Trays are bar coded. Integrated: A methodology employed to more efficiently manage inventory mechanisms. Usually involves the inventory pulls from manufacturing sites and warehouses, on an integrated basis through distribution to the customer. Integrators: Logistics service providers that will manage most or all aspects of the supply chain. Integrated logistics: Involves viewing the entire process or movement as a system, as opposed to many disparate and individual activities. Insourcing: Refers to programs that bring logistics suppliers into the customer location, including manager level supplier professionals and the supplier39。s logistics operations with suppliers into a coordinated “pull” effort. The most important characteristics of this undertaking are execution and dependability with repeated success leading to petitive advantage. CSR: “Customer Service Representative”。 This is an innovative logistics method that integrates the logistics operations of the supplier and the customer into one coordinated logistics effort. Inventories are tracked electronically and a replenishment planning/ordering system often linked to POS manages a “pull” type method of inventory management rather then a “push” type. CSC: “Continuous Supply Chain”?! R: “Collaborative Replenishment”。 CCM consists of systems, merce networks, procurement, and inhouse or 3PL logistics. CPFR: Abbreviation for “Means Collaborative Planning Forecasting and Replenishment”。s supply chain such as manufacturing support, manufacturing, distribution, and retailing or direct sales. Product moves from one channel member, with value being added, to the next channel member until product reaches the customer. A channel may also be a geographic area or zone wherein volumes are shipped. Collaborative Supply Network: A network that manages the convergence of execution networks and strategic planning. Core Competency: Attributes, processes, knowledge, abilities and skills that allow a firm to achieve petitive advantage. Often used to mean things a pany does best. See “capabilities”。 This involves bining trading partners to reduce cost through the sharing of logistics resources. CDL: “Consumer Direct Logistics”?! est Practices: Refers to panies whose operations set the industry standard for performance in one or more areas. BPI: Business Process Improvement.