[ Pobierz całość w formacie PDF ]

production runs is not descriptive of the material disbursing activity, but the number of production
runs may be used as an activity driver if material disbursements correlate well with the number of
production runs.
Definitions compiled by:
Kate Vitasek
Supply Chain Visions
www.scvisions.com
Bellevue, Washington
Please note: The Council of Supply Chain Management Professionals (CSCMP) does not take responsibility for the content of these definitions,
nor does CSCMP endorse these as official definitions except as noted.
Page 137 of 167
SUPPLY CHAIN and LOGISTICS
TERMS and GLOSSARY
Updated October 2006
Supermarket Approach: An inventory management and picking technique used in lean enterprises.
This concept was conceived by Taiichi Ohno of Toyota after a visit to the US in 1956 where he was
impressed by how consumers could pick whatever they need from the shelf, and the store would
simply replenish what was taken. This became the basis for the  pull system .
Supplier: 1) A provider of goods or services. Also see: Vendor 2) A seller with whom the buyer does
business, as opposed to vendor, which is a generic term referring to all sellers in the marketplace.
Supplier Certification: Certification procedures verifying that a supplier operates, maintains,
improves, and documents effective procedures that relate to the customer s requirements. Such
requirements can include cost, quality, delivery, flexibility, maintenance, safety, and ISO quality and
environmental standards.
Supplier-Owned Inventory: A variant of Vendor-Managed Inventory and Consignment Inventory. In
this case, the supplier not only manages the inventory, but also owns the stock close to or at the
customer location until the point of consumption or usage by the customer.
Supplemental Carrier: A for-hire air carrier subject to economic regulations; the carrier has no time
schedule or designated route; service is provided under a charter or contract per plane per trip.
Supply Chain: 1) starting with unprocessed raw materials and ending with the final customer using
the finished goods, the supply chain links many companies together. 2) the material and informational
interchanges in the logistical process stretching from acquisition of raw materials to delivery of
finished products to the end user. All vendors, service providers and customers are links in the supply
chain.
Supply Chain Council: A non-profit organization dedicated to improving the supply chain efficiency
of its members. The Supply-Chain Council's membership consists primarily practitioners representing
a broad cross section of industries, including manufacturers, services, distributors, and retailers. It is
the organization responsible for the SCOR standards.
Supply Chain Design: The determination of how to structure a supply chain. Design decisions include
the selection of partners, the location and capacity of warehouse and production facilities, the
products, the modes of transportation, and supporting information systems.
Supply Chain Execution (SCE): The ability to move the product out the warehouse door. This is a
critical capacity and one that only brick-and-mortar firms bring to the B2B table. Dot-coms have the
technology, but that's only part of the equation. The need for SCE is what is driving the Dot-coms to
offer equity partnerships to the wholesale distributors.
Supply Chain Event Management (SCEM): SCEM is an application that supports control processes
for managing events within and between companies. It consists of integrated software functionality
that supports five business processes: monitor, notify, simulate, control and measure supply chain
activities.
Supply Chain Integration (SCI): Likely to become a key competitive advantage of selected e-
marketplaces. Similar concept to the Back-End Integration, but with greater emphasis on the moving
of goods and services.
Definitions compiled by:
Kate Vitasek
Supply Chain Visions
www.scvisions.com
Bellevue, Washington
Please note: The Council of Supply Chain Management Professionals (CSCMP) does not take responsibility for the content of these definitions,
nor does CSCMP endorse these as official definitions except as noted.
Page 138 of 167
SUPPLY CHAIN and LOGISTICS
TERMS and GLOSSARY
Updated October 2006
Supply Chain Inventory Visibility: Software applications that permit monitoring events across a
supply chain. These systems track and trace inventory globally on a line-item level and notify the user
of significant deviations from plans. Companies are provided with realistic estimates of when material
will arrive.
Supply Chain Management (SCM) as defined by the Council of Supply Chain Management
Professionals (CSCMP):  Supply Chain Management encompasses the planning and management of all
activities involved in sourcing and procurement, conversion, and all logistics management activities.
Importantly, it also includes coordination and collaboration with channel partners, which can be
suppliers, intermediaries, third-party service providers, and customers. In essence, supply chain
management integrates supply and demand management within and across companies. Supply
Chain Management is an integrating function with primary responsibility for linking major business
functions and business processes within and across companies into a cohesive and high-performing
business model. It includes all of the logistics management activities noted above, as well as
manufacturing operations, and it drives coordination of processes and activities with and across
marketing, sales, product design, finance and information technology.
Supply Chain Network Design Systems: The systems employed in optimizing the relationships
among the various elements of the supply chain manufacturing plants, distribution centers, points-of-
sale, as well as raw materials, relationships among product families, and other factors-to synchronize
supply chains at a strategic level.
Supply Chain Operations Reference Model (SCOR): This is the model developed by the Supply-
Chain Council SCC and is built around six major processes: plan, source, make, deliver, return and
enable. The aim of the SCOR is to provide a standardized method of measuring supply chain
performance and to use a common set of metrics to benchmark against other organizations.
Supply Chain-Related Finance and Planning Cost Element: One of the elements comprising a
company's total supply-chain management costs. These costs consist of the following: [ Pobierz całość w formacie PDF ]