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cost of shipping LTL quantities by consolidating shipments from different vendors to makeup TL shipments. LTL can cost up to four times the cost of TL. Besides cost, other advantages are reduced inventory, reduced order cycle, reduced costs at the 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 1) order entry to delivery cycle; 2) inbound raw materials routing; 3) outbound routing; 4) warehouse sites; and in general, make any aspect of a pany39。s total logistics function more effective from a cost and customer service perspective eliminating waste. POP: In retail, merchandising panies arrange for the manufacture and installation (usually through 3rd party installers) of “pointofpurchase” materials ranging from free standing displays, wall mounted displays, hanging displays, racks for collateral material, racks containing goods for placement in mass merchants and in dealer type stores. Postponement: A strategy whereby a warehouse undertakes final assembly of a product adding certain features after orders customer orders are received. An example would be a women39。s clothing manufacturer that inventories close to a large market and when orders are received the warehouse sews in the appropriate label. Purchased Transportation: Term used to describe service offering by third party logistics providers. Involves the program of buying freight capacity at volume levels for many shippers at substantial discounts. Includes the administration and coordination of all activities associated with a freight management system. Quality: “Meeting the requirements.” To have quality, three things must happen. First, the customer must understand and accurately define the requirements. Second, the customer must clearly municate the requirements to the supplier. Third, the supplier must meet the requirements. QOS: Measurements of “quality of service” as used in weekly, monthly reports. QR: “Quick response”; strategy in which retailers and suppliers work cooperatively to respond to consumer needs by sharing information on point of sales (POS) activity to forecast demand for replenishable items and to monitor trends to detect new opportunities. QVR: Stands for “quality, value, and responsiveness”; used in reengineering efforts by a pany to make itself the ideal business partner for its customers. Reengineering: The fundamental rethinking and redesign of a pany39。s business processes to achieve dramatic improvements in critical measures of performance, such as cost, quality, service and speed. Reverse Logistics: Returnables that are handled by transportation provider or shipper and are reused (after refurbishment if necessary), reclaimed/recycled, resold or disposed of by shipper or shipper39。s suppliers. SCE: Supply Chain Execution. Definition refers to integrating the supply chain. SCE is the software that picks up where an advance planning or enterprise system ends. The objective is to provide visible inventory. SCR: Synchronized consumer response; an initiative of manufacturers and distributors of fastmoving consumer goods based on the consumer pull model (replenishment is pull driven back through the supply chain)。 SCR emphasizes flexible software solutions that enable panies to respond to their customers39。 requirements. Seamless Corporation: Synonymous with extended enterprise or supply chain enterprise. Redefines organizational structure to include organizations with which it interacts. Corporation forms long term partnerships with suppliers, buyers, vendors, customers, and other external panies that constitute the supply chain. Managing the supply chain is the goal of the seamless corporation. Sequencing The action of providing productionready materials for the assembly line so that the right part arrives in the correct order at the right time. SFLM: Synchronous Flow Leadership Manufacturing. This is an ongoing, continuous improvement process that has been developed to synchronize and manage material flow and to lead this transformation in a manufacturing environment to increase plant effectiveness. See Synchronous Manufacturing in this Section. Single Customer Focus: Logistics provider39。s operation is geared to handle all of the needs of a particular customer with the goal of ensuring errorfree service performance. SOE: “Statement of Expectations”; first step used in formulating an implementation plan for a logistics initiative to be acplished internally by a corporation or by a third party provider with the purpose of defining the expectations of the parties and corresponding accountabilities. Sourcing: The skill of effectively identifying and procuring raw materials for productive manufacturing. This includes ponent parts and supplies. Streamlining this process and managing raw material inventories is part of effective sourcing. The process may include inspections and measurements against quality standards. Statistical Process Control: (SPC)。 Engineering approaches to developing best methods to increase the efficiency of an operation, improve quality, and reduce costs. SubAssembly: Involves preassembling of parts and ponents to keep low workinprocess inventories. Reduces number of assembly processes manufacturing or operations has to manage enabling a pany to reduce or eliminate onsite activities. Allows a pany to focus on main assembly functions. See Kitting in Warehousing Secti