Introduction to Logistics and Supply Chain

Flashcards covering key vocabulary in logistics and supply chain management.

Logistics

The integrated management of the forecasting, inventory, transportation, warehousing, order-entry, processing, production, transporting, delivering and collecting products or services.

Supply Chain Management (SCM)

The planning and management of all activities involved in sourcing, procurement, conversion, and all logistics management activities.

Value Chain

A sequence of activities that an organization performs to deliver a good or service to its customers, adding value at each step.

Incoterms

International commercial terms that define the responsibilities of sellers and buyers for the delivery of goods.

Economic Utility

The value added to goods through logistics, including form, place, time, quantity, and possession utility.

Kanban

A scheduling system for lean and just-in-time manufacturing.

Reverse Logistics

The process of moving goods from their final destination back to the manufacturer or other facility for the purpose of return or proper disposal.

Green Supply Chain Management (GSCM)

An approach to supply chain management that incorporates environmentally friendly processes and practices into normal operations.

Key Performance Indicators (KPIs)

Quantifiable measures used to assess the success of an organization in meeting objectives for performance.

C-TPAT

Customs-Trade Partnership Against Terrorism; a voluntary U.S. government program designed to strengthen the security of international supply chains.

ISO 31000

An international standard that provides guidelines and principles for risk management.

Utilization

A measure of the extent to which capacity is used in a facility, affecting processing costs and delays.

Order Fulfillment

The entire process from the point of order placement through to delivery at the customer's door.

Customer Service Level

A measure of customer satisfaction related to the service provided, including factors such as delivery accuracy and response time.

Forecast Error

The difference between the forecasted demand and actual demand, used to assess the accuracy of demand forecasting.

Lean Supply Chain

An approach aimed at streamlining and maximizing value by reducing waste in the supply chain.

Time Utility

The added value achieved by having a product available when it is needed.

Place Utility

The value added to products by delivering them to locations where demand exists.

Possession Utility

The added value created through marketing activities related to the promotion and sale of goods.