SCM Supply Chain Management Definitions & Terms

Jan 19, 2011

Reverse Logistics

A supply chain that is dedicated to the reverse flow of products and materials for returns, repair, remanufacture, and/or recycling. Source: http://www.apics.org/ (10th ed.) 

Jan 19, 2011

Maintenance

See: Preventative Maintenance, Total Product Maintenance (TPM) 

Jan 19, 2011

Information Sharing

A strategic partnering relationship between suppliers and buyers is characterized by a willingness to be open, and to share forecasted demand and cost data as well as the benefits resulting… 

Jan 19, 2011

Standard/Compatibility

1) An established norm against which measurements are compared. (APICS 10th ed.) 2) The Internet has transformed supply chain management into something closer to an exact science. However for information… 

Jan 14, 2011

Capacity – Information Flows

Capacity is the capability of a worker, machine, work center, plant, or organization to produce output per time period. Information aids us in addressing capacity availability, unused capacity and performance… 

Jan 13, 2011

Activity-Based Management (ABM)

The use of activity-based costing information about cost pools and drivers, activity analysis, and business processes to identify business strategies; improve product design, manufacturing, and distribution; and remove waste from… 

Jan 13, 2011

Activity-Based Cost Accounting (ABC)

A cost accounting system that accumulates costs based on activities performed and then uses cost drivers to allocate these costs to products or other bases, such as customers, markets, or… 

Jan 13, 2011

Business-to-Business Commerce (B2B)

Business being conducted over the Internet between businesses. The implication is that this connectivity will cause businesses to transform themselves via supply chain management to become virtual organizations, reducing costs,… 

Jan 13, 2011

Agreements

An agreement should clearly state what you are buying and its cost. Delivery terms and responsibility, Installation related issues, if applicable, an acceptance provision detailing how and when the buyer…