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C & F: See Cost and Freight
Cab Extenders: Also called gap seals, which help to close the gap between the tractor and the trailer Cabotage: A federal law that requires coastal and inter-coastal traffic to be carried in U.S.-built and registered ships. CAE: See Computer-Aided Engineering. CAD: See Cash Against Documents. CADEX: See Customs Automated Data Exchange System CAF: See Currency Adjustment Factor Cage: (1) A secure enclosed area for storing highly valuable items (2) A pallet-sized platform with sides that can be secured to the tines of a forklift and in which a person may ride to inventory items stored well above the warehouse floor. Caged: Referring to the practice of placing high-value or sensitive products in a fenced off area within a warehouse. Calendar Days: The conversion of working days to calendar days is based on the number of regularly scheduled workdays per week in your manufacturing calendar. Calculation: To convert from working days to calendar days: if work week = 4 days, multiply by 1.75; = 5 days, multiply by 1.4; = 6 days, multiply by 1.17
Call Center: A facility housing personnel who respond to customer phone queries. These personnel may provide customer service or technical support. Call center services may be in house or outsourced. Synonym: Customer Interaction Center.
Can-Order Point: An ordering system used when multiple items are ordered from one vendor. The can-order point is a point higher than the original order point. When any one of the items triggers an order by reaching the must-order point, all items below their can-order point are also ordered. The can-order point is set by considering is set by considering the additional holding cost that would be incurred if the item were ordered early. Capacity Management: The concept that capacity should be understood, defined, and measured for each level in the organization to include market segments, products, processes, activities, and resources. In each of these applications, capacity is defined in a hierarchy of idle, non-productive, and productive views. Capacity Planning: Assuring that needed resources (e.g., manufacturing capacity, distribution center capacity, transportation vehicles, etc.) will be available at the right time and place to meet logistics and supply chain needs.
Capacity: The physical facilities, personnel, and processes available to meet the product or service needs of customers. Capacity generally refers to the maximum output or producing ability of a machine, a person, a process, a factory, a product, or a service.
Also see: Capacity Management CAPEX: A term used to describe the monetary requirements (CAPital EXpenditure) of an initial investment in new machines or equipment. Capital: The resources, or money, available for investing in assets that produce output. CAPSTAN: Computer-Aided Planned Stowage and Networking system. CARAT: Cargo Agents Reservation Air Waybill Issuance and Tracking.
Cargo: Merchandise carried by a means of transportation. Carmack Amendment: An Interstate Commerce Act amendment that delineates the liability of common carriers and the bill of lading provisions. Carnet: A Customs document permitting the holder to carry or send special categories of goods temporarily into certain foreign countries without paying duties or posting bonds.
Carousel: A rotating system of layers of bins and/or drawers that can store many small items using relatively little floor space. Carriage: See Transportation. Carrier: A firm that transports goods or people via land, sea, or air. Carrier Assets: Items that a carrier owns (technically or outright) to facilitate the services they provide. Carrier Certificate and Release Order: Used to advise customs of the shipment's details. By means of this document, the carrier certifies that the firm or individual named in the certificate is the owner or consignee of the cargo.
Carrier Liability: A common carrier is liable for all shipment loss, damage, and delay with the exception of that caused by act of God, act of a public enemy, act of a public authority, act of the shipper, and the goods' inherent nature.
Cartel: A group of companies that agree to cooperate rather than compete, in producing a product or service. Thus limiting or regulating competition. Cartage: There are two definitions for this term: 1) charge for pick-up and delivery of goods 2) movement of goods locally (short distances). Carton Flow Rack: A storage rack consisting of multiple lines of gravity flow conveyors. Cash Against Documents (CAD): A method of payment for goods in which documents transferring title are given to the buyer upon payment of cash to an intermediary acting for the seller. Cash Conversion Cycle: 1) In retailing, the length of time between the sale of products and the cash payments for a company's resources. 2) In manufacturing, the length of time from the purchase of raw materials to the collection of accounts receivable from customers for the sale of products or services. Also see: Cash-to-Cash Cycle Time. Cash In Advance (CIA): A method of payment for goods whereby the buyer pays the seller in advance of shipment of goods.
Cash-to-Cash Cycle Time: The time it takes for cash to flow back into a company after it has been spent for raw materials. Synonym: Cash Conversion Cycle.
Calculation: Total Inventory Days of Supply + Days of Sales Outstanding - Average Payment Period for Material in Days.
Cash with Order (CWO): A method of payment for goods where cash is paid at the time of order, and the transaction becomes binding on both buyer and seller. Catalog Channel: A call center or order processing facility that receives orders directly from the customer based on defined catalog offerings, and ships directly to the customer. Category Management: The management of product categories as strategic business units. This practice empowers a category manager with full responsibility for the assortment decisions, inventory levels, shelf-space allocation, promotions, and buying. With this authority and responsibility, the category manager is able to more accurately judge the consumer buying patterns, product sales, and market trends of that category. Cause-and-Effect Diagram: In quality management, a structured process used to organize ideas into logical groupings. Used in brainstorming and problem-solving exercises. Also known as Ishikawa or fish bone diagram. CBT: See Computer-Based Training CELL: A manufacturing or service unit consisting of a number of workstations, and the materials transport mechanisms and storage buffers that interconnect them. Center-of-Gravity Approach: A supply chain planning methodology for locating distribution centers at approximately the location representing the minimum transportation costs between the plants, the distribution centers, and the markets. Central Dispatching: The organization of the dispatching function into one central location. This structure often involves the use of data collection devices for communication between the centralized dispatching function which usually reports to the production control department and the shop manufacturing departments. Centralized Authority: The restriction of authority to make decisions to few managers. Centralized Inventory Control: Inventory decision-making (for all SKUs) exercised from one office or department for an entire company. Certificate of Compliance: A supplier's certification that the supplies or services in question meet specified requirements.
Certificate of Insurance: A negotiable document indicating that insurance has been secured under an open policy to cover loss or damage to a shipment while in transit.
Certificate of Origin: A document containing an affidavit to prove the origin of imported goods. Used for customs and foreign exchange purposes. Certificate of Public Convenience and Necessity: The grant of operating authority that common carriers receive. A carrier must prove that a public need exists and that the carrier is fit, willing, and able to provide the needed service. The certificate may specify the commodities the carrier may haul, and the routes it may use.
Certificated Carrier: A for-hire air carrier that is subject to economic regulation and requires an operating certification to provide service. Certified Supplier: A status awarded to a supplier who consistently meets predetermined quality, cost, delivery, financial, and count objectives. Incoming inspection may not be required. CFS: See Container Freight Station.
CFS/CFS: See Container Freight Station to Container Freight Station.
CI: See Continuous Improvement. CIF: See Cost, Insurance, Freight
Chain of Customers: The sequence of customers who, in turn, consume the output of each other, forming a chain. For example, individuals are customers of a department store which in turn is the customer of a producer who is the customer of a material supplier. Change Management: The business process that coordinates and monitors all changes to the business processes and applications operated by the business, as well as to their internal equipment, resources, operating systems, and procedures. The change management discipline is carried out in a way that minimizes the risk of problems that will affect the operating environment and service delivery to the users. Change Order: A formal notification that a purchase order or shop order must be modified in some way. This change can result from a revised quantity, date, or specification by the customer; an engineering change; a change in inventory requirement data; etc.
Changeover: Process of making necessary adjustments to change or switchover the type of products produced on a manufacturing line. Changeovers usually lead to downtime and for the most part, companies try to minimize changeover time to help reduce costs. Chock: A wedge, usually made of hard rubber or steel, that is firmly placed under the wheel of a trailer, truck, or boxcar to stop it from rolling. CIF: See Cost, Insurance, and Freight City Driver: A motor carrier driver who drives a local route as opposed to a long-distance, intercity route. Civil Aeronautics Board: A federal regulatory agency that implemented economic regulatory controls over air carriers. Claim: A charge made against a carrier for loss, damage, delay, or overcharge. Class II Carrier: A classification of regulated carriers based upon annual operating revenues -- motor carriers of property: $1-$5 million; railroads: $10-$50 million; motor carriers of passengers: $3 million. Class III Carrier: A classification of regulated carriers based upon annual operating revenues -- motor carriers of property: $1 million; railroads $10 million. Classification yard: A railroad terminal area where railcars are grouped together to form train units. CMI: See Co-Managed Inventory
CO: Carbon monoxide CO2: Carbon dioxide Co-Destiny: The evolution of a supply chain from intra-organizational management to inter-organizational management. Co-Packer: A contract co-packer produces goods and/or services for other companies, usually under the other company's label or name. Co-packers are more frequently seen in consumer packaged goods and foods. Co-Managed Inventory (CMI): A form of continuous replenishment in which the manufacturer is responsible for replenishment of standard merchandise, while the retailer manages the replenishment of promotional merchandise.
Coastal Carriers: Water carriers that provide service along coasts serving ports on the Atlantic or Pacific Oceans or on the Gulf of Mexico. Code: A numeric, or alphanumeric representation of text for exchanging commonly-used information. For example: commodity codes, carrier codes. Codifying: The process of detailing a new standard. COFC: See Container on Flat Car COGS: See Cost-of-Goods Sold. Collaborative Planning, Forecasting, and Replenishment (CPFR):
Collect Freight: Freight payable to the carrier at the port of discharge or ultimate destination. The consignee does not pay the freight charge if the cargo does not arrive at the destination.
Collective Paper: All documents (commercial invoices, bills of lading, etc.) submitted to a buyer for the purpose of receiving payment for a shipment. Combi Aircraft: An aircraft specially designed to carry unitized cargo loads on the upper deck of the craft, forward of the passenger area.
Combined Lead Time: See Cumulative Lead Time Commercial Invoice: A document created by the seller. It is an official document which is used to indicate, among other things, the name and address of the buyer and seller, the product(s) being shipped, and their value for customs, insurance, or other purposes. Commercial zone: The area surrounding a city or town to which rate carriers quote for the city or town also apply; the ICC defines the area.
Committed Capability: The portion of the production capability that is currently in use, or is scheduled for use. Committee of American Steamship Lines: An industry association representing subsidized U.S. flag steamship firms. Commodities: Any article exchanged in trade, most commonly used to refer to raw materials and agricultural products. Commodities Clause: A clause that prohibits railroads from hauling commodities that they produced, mined, owned, or had an interest in.
Commodity Code: A code describing a commodity or a group of commodities pertaining to goods classification. This code can be carrier tariff or regulating in nature.
Commodity Procurement Strategy: The purchasing plan for a family of items. This would include the plan to manage the supplier base and solve problems. Commodity Rate: A rate for a specific commodity and its origin-destination. Common Carrier: Transportation available to the public that does not provide special treatment to any one party and is regulated as to the rates charged, the liability assumed, and the service provided. A common carrier must obtain a certificate of public convenience and necessity from the Federal Trade Commission for interstate traffic. Antonym: Private Carrier. Common Carrier Duties: Common carriers must serve, deliver, charge reasonable rates, and not discriminate.
Common Cost: A cost that a company cannot directly assign to particular segments of the business; a cost that the company incurs for the business as a whole.
Commuter: An exempt for-hire air carrier that publishes a time schedule on specific routes; a special type of air taxi.
Company Culture: A system of values, beliefs, and behaviors inherent in a company. To optimize business performance, top management must define and create the necessary culture. Comparative Advantage: A principle based on the assumption that an area will specialize in producing goods for which it has the greatest advantage or the least comparative disadvantage.
Competitive Advantage: Value created by a company for its customers that clearly distinguishes it from the competition, provides its customers a reason to remain loyal. Competitive Benchmarking: Benchmarking a product or service against competitors.
Also see: Benchmarking.
Competitive Bid: A price/service offering by a supplier that must compete with offerings from other suppliers.
Complete and On-Time Delivery (COTD): A measure of customer service. All items on any given order must be delivered on time for the order to be considered as complete and on time.
Complete Manufacture to Ship Time: Average time from when a unit is declared shippable by manufacturing until the unit actually ships to a customer. Compliance: Meaning that products, services, processes, and/or documents comply with requirements.
Component: Material that will contribute to a finished product but is not the finished product itself. Examples include tires for an automobile, power supply for a personal computer, or a zipper for a ski parka.
Computer-Aided Engineering (CAE): The use of computers to model design options to stimulate their performance. Computer-Based Training: Training that is delivered via computer workstation and includes all training and testing materials. Conference: A group of vessel operators joined for the purpose of establishing freight rates. Conference Carrier: An ocean carrier who is a member of an association known as a "conference." The purpose of the conference is to standardize shipping practices, eliminate freight rate competition, and provide regularly scheduled service between specific ports.
Configuration: The arrangement of components as specified to produce an assembly. Configure/Package to Order: A process where the trigger to begin to manufacture, final assembly, or packaging of a product is an actual customer order or release rather than a market forecast. In order to be considered a configure-to-order environment, less than 20% of the value added takes place after the receipt of the order or release, and virtually all necessary design and process documentation is available at time of order receipt. Confirmation: With regards to EDI, a formal notice (by message or code) from a electronic mailbox system or EDI server indicating that a message sent to a trading partner has reached its intended mailbox or has been retrieved by the addressee. Confirming Order: A purchase order issued to a supplier listing the goods or services and terms of an order placed orally or otherwise before the usual purchase document.
Conformance: An affirmative indication or judgment that a product or service has met the requirements of a relevant specification, contract, or regulation.
Synonym: Compliance.
Conrail: The Consolidated Rail Corporation established by the Regional Reorganization Act of 1973 to operate the bankrupt Penn Central Railroad and other bankrupt railroads in the Northeast; the 4-R Act of 1976 provided funding.
Consignee: The party to whom goods are shipped and delivered. The receiver of a freight shipment. Consignment: Also see: Consignment Inventory.
Consignment Inventory:
Consignor: The party who originates a shipment of goods (shipper). The sender of a freight shipment, usually the seller.
Consolidation: Combining two or more shipments in order to realize lower transportation rates. Inbound consolidation from vendors is called make-bulk consolidation; outbound consolidation to customers is called break-bulk consolidation.
Consolidation Point: The location where consolidation takes place.
Consolidator: An enterprise that provides services to group shipments, orders, and/or goods to facilitate movement.
Consolidator's Bill of Lading: A bill of lading issued by a consolidator as a receipt for merchandise that will be grouped with cargo obtained from other shippers. See also House Air Waybill. Consortium: A group of companies that works together to jointly produce a product, service, or project. Constraint: A bottleneck, obstacle, or planned control that limits throughput or the utilization of capacity. Consul: A government official residing in a foreign country, charged with representing the interests of his or her country and its nationals. Consular Declaration: A formal statement made to the consul of a country describing merchandise to be shipped to that consul's country. Approval must be obtained prior to shipment. Consular Documents: Special forms signed by the consul of a country to which cargo is destined.
Consular Invoice: A document, required by some foreign countries, describing a shipment of goods and showing information such as the consignor, consignee, and value of the shipment. Certified by a consular official of the foreign country, it is used by the country's custom. Consumer-Centric Database: Database with information about a retailer's individual consumers used primarily for marketing and promotion. Consumption Entry: An official Customs form used for declaration of reported goods, also showing the total duty due on such transaction. Container:
Container Chassis: A vehicle built for the purpose of transporting a container so that, when a container and chassis are assembled, the produced unit serves as a road trailer.
Container Depot: The storage area for empty containers.
Container Freight Station (CFS): The location designated by carriers for receipt of cargo to be packed into containers/equipment by the carrier. At destination, CFS is the location designated by the carrier for unpacking of cargo from equipment/containers. Container Freight Station Charge: The charge assessed for services performed at the loading or discharge location.
Container Freight Station to Container Freight Station (CFS/CFS): A type of steamship-line service in which cargo is transported between container freight stations, where containers may be stuffed, stripped, or consolidated. Usually used for less-than-container load shipments. Container I.D.: An identifier assigned to a container by a carrier.
See also: Equipment ID. Containerization: A shipment method in which commodities are placed in containers, and after initial loading, the commodities, per se, are not rehandled in shipment until they are unloaded at the destination. Container on Flat Car (COFC): A container that is transported on a rail flatcar. It can be shipped via tractor/trailer using a chassis as the wheel section. Container Terminal: An area designated to be used for the stowage of cargo in containers that may be accessed by truck, rail, or ocean transportation. Container Vessel: A vessel specifically designed for the carriage of containers.
Container Yard: The location designated by the carrier for receiving, assembling, holding, storing, and delivering containers, and where containers may be picked up by shippers or redelivered by consignees. Container Yard to Container Yard (CY/CY): A type of steamship-line service in which freight is transported from origin container yard to destination container yard.
Contingency Planning: Preparing to deal with calamities (e.g., floods) and noncalamitous situations (e.g., strikes) before they occur. Continuous Flow Distribution (CFD): The streamlined pull of products in response to customer requirements while minimizing the total costs of distribution. Continuous-Flow, Fixed-Path Equipment: Materials handling devices that include conveyors and drag lines. Continuous Improvement (CI): A structured, measurement-driven process that continually reviews and improves performance. Continuous Process Improvement (CPI): A never-ending effort to expose and eliminate root causes of problems; small-step improvement as opposed to big-step improvement.
Synonym: Continuous Improvement.
Also see: Kaizen.
Continuous Replenishment: Continuous replenishment is the practice of partnering between distribution channel members that changes the traditional replenishment process from distributor-generated purchase orders based on economic order quantities to the replenishment of products based on actual and forecasted product demand.
Continuous Replenishment Planning (CRP): A program that triggers the manufacturing and movement of product through the supply chain when the identical product is purchased by an end user.
Contract: An agreement between two or more competent persons or companies to perform or not to perform specific acts or services or to deliver merchandise. A contract may be oral or written. A purchase order, when accepted by a supplier, becomes a contract. Acceptance may be in writing or by performance, unless the purchase order requires acceptance in writing.
Contract Administration: Managing all aspects of a contract to guarantee that the contractor fulfills his obligations. Contract Carrier: A for-hire carrier that does not serve the general public but serves shippers with whom the carrier has a continuing contract. The contract carrier must secure a permit to operate. Contract of Affreightment: A contract between a cargo shipper and carrier for the transport of multiple cargoes over a period of time. Contracts are individually negotiated and usually include cargo description, quantities per shipment and in total, load and discharge ports, freight rates and duration of the contract. Contribution: The difference between sales price and various costs. Contribution is used to cover fixed costs and profits. Contribution Margin: An amount equal to the difference between sales revenue and variable costs. Controlled Access: Referring to an area within a warehouse or yard that is fenced and gated. These areas are typically used to store high-value items and may be monitored by security cameras. Conveyance: The application used to describe the function of a vehicle of transfer. Conveyor: A materials handling device that moves freight from one warehouse area to another. Roller conveyors utilize gravity, whereas belt conveyors use motors. Cooperative Associations: Groups of firms or individuals having common interests; agricultural cooperative associations may haul up to 25 percent of their total interstate non-farm, nonmember goods tonnage in movements incidental and necessary to their primary business. Coordinated Transportation: Two or more carriers of different modes transporting a shipment. CORBA: Common Object Request Broker Architecture. Core Competency: Bundles of skills or knowledge sets that enable a firm to provide the greatest level of value to its customers in a way that's difficult for competitors to emulate and that provides for future growth. Core competencies are embodied in the skills of the workers and in the organization. They are developed through collective learning, communication, and commitment to work across levels and functions in the organization and with the customers and suppliers. A core competency could be the capability of a firm to coordinate and harmonize diverse production skills and multiple technologies. To illustrate: advanced casting processes for making steel require the integration of machine design with sophisticated sensors to track temperature and speed, and the sensors require mathematical modeling of heat transfer. For rapid and effective development of such a process, materials scientists must work closely with machine designers, software engineers, process specialists, and operating personnel. Core competencies are not directly related to the product or market. Core Process: That unique capability that is central to a company's competitive strategy.
Cost Accounting: The branch of accounting that is concerned with recording and reporting business operating costs. It includes the reporting of costs by departments, activities, and products.
Cost and Freight (C & F): The seller quotes a price that includes the cost of transportation to a specific point. The buyer assumes responsibility for loss and damage and pays for the insurance of the shipment.
Cost Allocation: In accounting, the assignment of costs that cannot be directly related to production activities via more measurable means, e.g., assigning corporate expenses to different products via direct labor costs or hours. Cost Center: In accounting, a sub-unit in an organization that is responsible for costs.
Cost Driver: In accounting, any situation or event that causes a change in the consumption of a resource, or influences quality or cycle time. An activity may have multiple cost drivers. Cost drivers do not necessarily need to be quantified; however, they strongly influence the selection and magnitude of resource drivers and activity drivers.
Cost Driver Analysis: In cost accounting, the examination, quantification, and explanation of the effects of cost drivers. The results are often used for continuous improvement programs to reduce throughput times, improve quality, and reduce cost.
Cost Element: In cost accounting, the lowest level component of a resource activity, or cost object.
Cost, Insurance, Freight: A freight term indicating that the seller is responsible for cost, the marine insurance, and the freight charges on an ocean shipment of goods.
Cost Management: The management and control of activities and drivers to calculate accurate product and service costs, improve business processes, eliminate waste, influence cost drivers, and plan operations. The resulting information can be very useful in setting and evaluating an organization's strategies.
Cost of Capital: The cost to borrow or invest capital.
Cost-of-Goods Sold (COGS): The amount of direct materials, direct labor, and allocated overhead associated with products sold during a given period of time, determined in accordance with Generally Accepted Accounting Principles (GAAP). Cost of Lost Sales: The forgone profit companies associate with a stockout.
Cost Trade-Off: The interrelationship among system variables in which a change in one variable affects other variables' costs. A cost reduction in one variable may increase costs for other variables, and vice versa. Cost Variance: In cost accounting the difference between what has been budgeted for an activity and what it actually costs. COTD: See Complete and On-Time Delivery. Council of Supply Chain Management Professionals (CSCMP): The CSCMP is a not-for-profit professional business organization consisting of individuals throughout the world who have interests and/or responsibilities in logistics and supply chain management, and the related functions that make up these professions. Its purpose is to enhance the development of the logistics and supply chain management professions by providing these individuals with educational opportunities and relevant information through a variety of programs, services, and activities.
Countertrade: A reciprocal trading agreement that includes a variety of transactions involving two or more parties.
Countervailing Duties: An additional import duty imposed to offset Government subsidies in the exporting country, when the subsidized imports cause material injury to domestic industry in the importing country. Country of Destination: The country that will be the ultimate or final destination for goods. Country of Origin: The country where the goods were manufactured.
Courier Service: A fast, door-to-door service for high-valued goods and documents; firms usually limit service to shipments weighing fifty pounds or less. CPFR: See Collaborative Planning, Forecasting and Replenishment. CPI: See Continuous Process Improvement.
Crane: A materials handling device that lifts heavy items. There are two types: bridge and stacker. Credit Level: The amount of purchasing credit a customer has available. Usually defined by the internal credit department and reduced by any existing unpaid bills or open orders. Credit Terms: The agreement between two or more enterprises concerning the amount and timing of payment for goods or services. Critical Differentiators: This is what makes an idea, product, service, or business model unique. Critical Success Factor (CSF): Those activities and/or processes that must be completed and/or controlled to enable a company to reach its goals. Critical Value Analysis: A modified ABC analysis in which a company assigns a subjective critical value to each item in an inventory. CRM: See Customer Relationship Management. Crossdock: Crossdock operations in a warehouse involve moving goods between different trucks to consolidate loads without intermediate storage. Cross Docking: A distribution system in which merchandise received at the warehouse or distribution center is not put away, but instead is readied for shipment to retail stores. Cross docking requires close synchronization of all inbound and outbound shipment movements. By eliminating the put-away, storage, and selection operations, it can significantly reduce distribution costs.
Cross Sell: The practice of attempting to sell additional products to a customer during a sales call. For example, when the CSR presents a camera case and accessories to a customer that is ordering a camera. Cross Shipment: Material flow activity where materials are shipped to customers from a secondary shipping point rather than from a preferred shipping point.
CRP: See Continuous Replenishment Planning.
Critical Success Factor (CSF): Those activities and/or processes that must be completed and/or controlled to enable a company to reach its goals.
CSCMP: See Council of Supply Chain Management Professionals.
CSF: See Critical Success Factor.
CSG: Communications Support Group.
CSR: See Customer Service Representative. Cubage: Cubic volume of space being used or available for shipping or storage. Cube Out: The situation when a piece of equipment has reached its volumetric capacity before reaching the permitted weight limit.
Cube Utilization: In warehousing, a measurement of the utilization of the total storage capacity of a vehicle or warehouse. Cubic Capacity: The carrying capacity of a piece of equipment according to measurement in cubic feet. Cubic Space: In warehousing, a measurement of space available, or required, in transportation and warehousing. Cumulative Lead Time: The total time required to source components, build, and ship a product.
Cumulative Source/Make Cycle Time: The cumulative internal and external lead time to manufacture shippable product, assuming that there is no inventory on hand, no materials or parts on order, and no prior forecasts existing with suppliers. (An element of Total Supply Chain Response Time) Calculation: The critical path along the following elements: Total Sourcing Lead Time, Manufacturing Order Release to Start Manufacturing, total Manufacture Cycle Time (Make to Order, Engineer to Order, Configure/Package to Order) or Manufacture Cycle Time (Make to Stock), Complete Manufacture to Ship Time.
Note: Determined separately for Make-to-Order, Configure/Package-to-Order, Engineer-to-Order, and Make-to-Stock products.
Currency Adjustment Factor (CAF): A surcharge imposed by a carrier on ocean freight charges to offset foreign currency fluctuations. Customer: 1) In VMI, the trading partner or reseller, i.e., Wal-Mart, Safeway, or CVS. 2) In direct consumer, the end customer or user. Customer Acquisition or Retention: The rate at which new customers are acquired, or existing customers are retained. A key selling point to potential marquis partners. Customer Driven: The end user, or customer, motivates what is produced or how it is delivered. Customer Facing: Those personnel whose jobs entail actual contact with the customer. Customer Interaction Center: See Call Center Customer Order: An order from a customer for a particular product or a number of products. It is often referred to as an actual demand to distinguish it from a forecasted demand. Customer/Order Fulfillment Process: A series of customers' interactions with an organization through the order-filling process, including product/service design, production and delivery, and order stats reporting.
Customer Profitability: The practice of placing a value on the profit generated by business done with a particular customer. Customer Relationship Management (CRM): This refers to information systems that help sales and marketing functions as opposed to the ERP (Enterprise Resource Planning), which is for back-end integration. Customer Segmentation: Dividing customers into groups based on specific criteria, such as products purchased, customer geographic location, etc. Customer Service: The series of activities involved in providing the full range of services to customers. Customer Service Representative (CSR): An individual who provides customer support via telephone in a call-center environment. Customer-Supplier Partnership: A long-term relationship between a buyer and a supplier characterized by teamwork and mutual confidence. The supplier is considered an extension of the buyer's organization. The partnership is based on several commitments. The buyer provides long-term contracts and uses fewer suppliers. The supplier implements quality assurance processes so that incoming inspection can be minimized. The supplier also helps the buyer reduce costs and improve product and process designs. Customization: Creating a product from existing components into an individual order. Synonym: Build to Order. Customs: The authorities designated to collect duties levied by a country on imports and exports.
Customs Automated Data Exchange System (CADEX): A Canada Customs system that allows for the electronic transmission of import data for goods that have already been released. Additional information such as accounting data and release notifications are also accessible. Customs Broker: A firm that represents importers/exporters in dealings with customs. Normally responsible for obtaining and submitting all documents for clearing merchandise through customs, arranging inland transport, and paying all charges related to these functions.
Customs Clearance: The act of obtaining permission to import merchandise from another country into the importing nation. Customs House Broker: A business firm that oversees the movement of international shipments through Customs, and ensures that the documentation accompanying a shipment is complete and accurate. Customs Invoice: A document that contains a declaration by the seller, the shipper, or the agent as to the value of the shipment. Customs Value: The value of the imported goods on which duties will be assessed.
CWO: See Cash with Order. CWT: The abbreviation for hundredweight, which is the equivalent of 100 pounds. See Hundredweight. CY/CY: See Container Yard to Container Yard. Cycle Inventory: An inventory system where counts are performed continuously, often eliminating the need for an annual overall inventory. It is usually set up so that A items are counted regularly (i.e., every month), B items are counted semi-regularly (every quarter or six months), and C Items are counted perhaps only once a year. Cycle Time: The amount of time it takes to complete a business process. Cycle Time to Process Obsolete and End-of-Life Product Returns for Disposal: The total time to process goods returned as obsolete and end of life to actual disposal. This cycle time includes the time a Return Product Authorization (RPA) is created to the time the RPA is approved, from Product Available for Pickup to Product Received and from Product Receipt to Product Disposal/Recycle. Cycle Time to Repair or Refurbish Returns for Use: The total time to process goods returned for repair or refurbishing. This cycle time includes the time a Return Product Authorization (RPA) is created to the time the RPA is approved, from Product Available for Pickup to Product Received, from Product Receipt to Product Repair/Refurbish Begin, and from Product Repair/Refurbish Begin to Product Available for Use. |
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