Your Reference Guide To Supply Chain, Warehousing & Logistics
Every term you'll come across in supply chain, warehousing and logistics - explained clearly. No jargon. No fluff.
All terms
Showing 27 of 27 terms
ABC Analysis
Inventory
ABC analysis full form is Always Better Control. It is often known as the ABC classification or Pareto analysis. ABC analysis is a strategic inventory management tool.
Read full definitionABC Classification
Inventory
This process ranks items in descending order of their annual dollar volume or other criteria and then splits them into three categories: A (high value), B (moderate value), and C (lower value)
Read full definitionABC Costing
Finance & Compliance
Activity-Based Costing – A costing method that assigns costs to products based on the activities required to produce them, providing a more accurate reflection of the costs incurred.
Read full definitionABC Inventory Control
Inventory
An inventory management approach that prioritizes products based on their classification in the ABC analysis, focusing more resources on the most valuable items.
Read full definitionABC Model
Inventory
In cost management, a representation that illustrates the cost of resources used over a period and how these are consumed by activities and subsequently traced to products, services, or customers.
Read full definitionABC System
Inventory
A cost management system that tracks financial and operational data on resources, activities, drivers, and measures. ABC models are created and maintained within this system.
Read full definitionAbnormal Demand
Operations
Demand that falls outside the limits established by management policy, often due to new customers or changing needs of existing customers.
Read full definitionAbsorption Costing
Finance & Compliance
A method of inventory valuation where both variable and a portion of fixed costs are assigned to each unit of production. Fixed costs are typically allocated based on labor hours, machine hours, or material costs.
Read full definitionAccelerated Commercial Release Operations Support System (ACROSS)
Finance & Compliance
Accelerated Commercial Release Operations Support System also known as ACROSS, A system used by Canada Customs to expedite the release of shipments by allowing electronic data interchange around the clock.
Read full definitionAcceptable Quality Level (AQL)
Operations
In quality management, a threshold level that represents a satisfactory average quality level in a batch or series of lots during sampling inspection.
Read full definitionAcceptable Sampling Plan
Operations
A specific plan indicating the sizes of samples to be used and the criteria for accepting or rejecting a lot based on those samples.
Read full definitionActive Stock
Inventory
Active stock means the inventory that a business uses, refills, and moves around regularly. This stock includes items with a constant turnover rate, are consistently in demand, and require frequent restocking. Active stock differs from passive or inactive stock, including items that move slowly or are rarely used.
Read full definitionActive Stock Management
Inventory
In today’s complex supply chains, active stock plays a pivotal role in driving business agility, reducing holding costs, and maintaining customer satisfaction. Whether you’re an e-commerce player, a manufacturer, or a 3PL partner, understanding what active stock means - and how to manage it - is vital to staying competitive in an era driven by real-time demand and razor-thin margins.
Read full definitionAD Code (Authorized Dealer Code)
Finance & Compliance
In the dynamic world of international trade, every detail matters. Did you know that as of 2024, global e-commerce trade is projected to exceed $6 trillion annually? This growth highlights the importance of smooth export-import processes, especially in countries like India, where foreign trade regulations are pivotal. One such crucial requirement is the Authorised Dealer Code (AD Code). Without it, businesses can face hurdles in customs clearance and foreign exchange transactions.
Read full definitionAdvanced Planning and Scheduling (APS)
Technology
Systems that integrate data from across the supply chain to improve the accuracy of planning and scheduling of manufacturing processes.
Read full definitionAggregate Inventory Management
Inventory
The process of managing the total quantity of items held in stock across an entire supply chain, to optimize total inventory levels and costs.
Read full definitionAnnual Inventory Count
Inventory
An Annual Inventory Count is a process where a business physically counts and verifies all the items in its inventory once a year. This count is typically done at the end of the fiscal year to ensure that the recorded inventory numbers in the company’s financial statements match the actual physical inventory. The process helps identify discrepancies due to loss, theft, or errors in inventory records, allowing the business to adjust its inventory and financial records accordingly. It’s an essential part of inventory management, helping businesses maintain accurate stock levels and financial data.
Read full definitionAnticipation Inventory
Inventory
Anticipation Inventory refers to the stock that a company accumulates in advance of expected increases in demand or potential supply shortages. This type of inventory is typically built up in anticipation of events like seasonal sales, promotions, holidays, or potential disruptions in supply chains (e.g., strikes, natural disasters). By holding anticipation inventory, businesses can meet customer demand promptly without facing stockouts, ensuring smooth operations during peak periods or unforeseen challenges. It’s a strategic approach to managing supply and demand fluctuations.
Read full definitionAverage Days to Sell Inventory (DSI)
Inventory
This ratio calculates the average number of days it takes for a company to turn its inventory into sales. It’s also known as the inventory days formula.
Read full definitionAverage Payment Period for Production Materials
Finance & Compliance
The average time taken by a company to pay for materials used in production after receipt. It’s a measure of the payment cycle for production inputs.
Read full definitionCross Docking
Warehousing
Cross Docking leads to an enhancement of the supply chain since it fastens the delivery of products. This conceals the idea of shifting goods from the supplier to the customer without multiple transfers and storage.
Read full definitionDemand Forecasting
Operations
Definition – Demand forecasting is the process of predicting the future demand for a product or service. This process utilises past data, market trends, and other market factors to calculate how much customers want to buy in a specific period.
Read full definitionGoods Received Note (GRN)
Warehousing
In a world where supply chains are no longer linear but lattice-like, the margin for error has become infinitesimal. A single misplaced pallet or unchecked shipment can ripple across continents, unsettling entire inventory systems and customer commitments. Enter the humble yet pivotal Goods Received Note (GRN) - a document so deceptively simple, yet essential in orchestrating accuracy, accountability, and trust in modern procurement and warehousing.
Read full definitionICEGATE Shipping Bill Status
Finance & Compliance
In a world where every second counts in international trade, waiting blindly for export documentation to move is no longer acceptable. With over $770 billion worth of goods exported by India in FY 2023-24, the pressure on timely customs clearance has intensified. Here’s where ICEGATE Shipping Bill, India’s digital backbone for customs operations steps in.
Read full definitionJust-in-Time (JIT) Inventory
Inventory
Just-in-Time (JIT) inventory is a strategy where businesses seek to reduce inventory costs by receiving goods only when they are required for production or sale. Instead of holding large stocks of raw materials or finished goods, companies use JIT. Companies maintain minimum inventory levels and depend on regular, small deliveries to meet demand.
Read full definitionLIFO (Last In, First Out)
Inventory
Did you know that using the LIFO (Last In, First Out) inventory valuation method can lead to significant tax savings during inflationary periods? Despite this advantage, LIFO is banned in most countries following IFRS regulations, yet it remains a key method for businesses in industries like retail, manufacturing, and oil and gas.
Read full definitionOrder Management
Fulfillment
Order management is an end-to-end process of receiving, tracking, and fulfilling customer orders. This process begins when a customer places an order, and the process continues until the product is delivered to the customer’s doorstep. The order management process involves multiple steps, including inventory checks, payment processing, shipping coordination, and customer updates.
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