Industry Terminology

Num A B C D E F G H I J K L M N O P Q R S T U V W




Safety Stock: The inventory a company holds above normal needs as a buffer against delays in receipt of supply or changes in customer demand.


Sales Plan: A time-phased statement of expected customer orders anticipated to be received (incoming sales, not outgoing shipments) for each major product family or item. It represents sales and marketing management's commitment to take all reasonable steps necessary to achieve this level of actual customer orders. The sales plan is a necessary input to the production planning process (or sales and operations planning process). It is expressed in units identical to those used for the production plan (as well as in sales dollars). Also see: Aggregate planning,, Production Planning, Sales and Operations Planning


SBOL: Straight Bill of Lading


SC: Supply Chain


Scan: Reading a bar code on a label for the purpose of locating data about the item.


Scan-Based Trading: A business approach, similar to consignment and generally applied to direct store delivery products, in which consumer goods firms keep shelves stocked and merchandized, but are not paid until after an item is scanned at POS. SBT cuts inventory and administrative costs for retailers, and gives consumer goods firms all-hours access to truck docks and store shelves. The retailer typically shares in paying for shrink.


Scanner: A bar-code reading device, generally one that uses a laser. One that uses a CCD unit is often called a bar-code reader.


Scanner, Fixed Beam: Stationary bar-code scanner that requires the bar code to be moved through the beam of light.


Scanner, He-Ne: A helium and neon laser scanner that reads all colored bar-code labels.


Scanner, Linear (Galvanometric): Scanner that can be vectored.


Scanner, Moving Beam: Bar- code scanner that moves its beam of light to read a symbol.


Scanner, Resonant: Scanner that continuously moves at a fixed frequency.


Scanner, Wand: Handheld scanning device used in contact with the bar code.


SCC: Shipping Container Code.


SCC: Supply Chain Collaboration


SCE: Supply Chain Execution: see also SCP.


SCEM: Supply Chain Event Management. Often refers to software for monitoring, controlling and measuring supply chain activity.


Scenario Planning: A form of planning in which likely sets of relevant circumstances are identified in advance, and used to assess the impact of alternative actions.


SCI: Supply Chain Integration: supply chain elements working together for maximum efficiency.


SCM: Shipping container marking or supply chain management. See Code 128. See Supply Chain Management.


SDC: Sample Data Collection


SDQ: Ship Destination Quantity: EDI term describing the number of items going to a particular destination.


SDT: Scheduled delivery time.


SDW: Simplified Declaration (Warehouse): Customs term.


Seal: A slim plastic, metal, bar-coded imprinted band


Seal Card: A document that lists the seal numbers, signatures, and destinations of the trailer.


Seasonal Inventory: Inventory built up in anticipation of a peak seasonal demand (e.g., costumes for Halloween), usually by suppliers manufacturing to forecast.


Seasonality: A repetitive pattern of demand from year to year (or other repeating time interval) with some periods considerably higher than others. Seasonality explains the fluctuation in demand for various recreational products which are used during different seasons. Also see: Base Series


SED: Shipper's Export Declaration


Segment (EDI): A segment is made up of a function identifier and one or more related data elements. These elements are positioned in a standard manner with a delimiter preceding each element and a segment terminator following the last element transmitted.


Self-Checking: Said of some bar-code symbologies that verify their own accuracy using a formula.


Serial Communication Expansion Board: An add-in board for PCs that provides serial ports to support serial devices, such as cash drawers, bar-code readers, scanners, printers, and remote terminals.


Serial Number: A unique number assigned for identification to a single piece that will never be repeated for similar pieces. Serial numbers are usually applied by the manufacturer but can be applied at other points, including by the distributor or wholesaler. Serial numbers can be used to support traceability and warranty programs.


Set: Unit in which hanging garments are transported.


Shareholder Value: Combination of profitability (revenue and costs) and invested capital (working capital and fixed capital).


Shelf life: The amount of time an item may be held in inventory before it becomes unusable. Shelf life is a consideration for food and drugs which deteriorate over time, and for high tech products which become obsolete quickly.


Shelf Talkers: Large labels, tags, or devices used to attract consumers' attention.


Ship Notice: See Advance Ship Notice.


Shipper: The party that tenders goods for transportation.


Shipping: The function that performs tasks for the outgoing shipment of parts, components, and products. It includes packaging, marking, weighing, and loading for shipment.


Shipping Manifest: A document that lists the pieces in a shipment. A manifest usually covers an entire load regardless of whether the load is to be delivered to a single destination or many destinations. Manifests usually list the items, piece count, total weight, and the destination name and address for each destination in the load.


Short Shipment: Piece of freight missing from shipment as stipulated by documents on hand.


Shrinkage: Reductions of actual quantities of items in stock, in process, or in transit. The loss may be caused by scrap, theft, deterioration, evaporation, etc.


SI: Systems Integrator.


SIG: Special Interest Group


SIL: Standard Interchange Language. A standard for data definition, maintenance, and queries developed by independent grocery firms; it can also link diverse in-store devices such as scanner scales and handheld computers.


Six-Sigma Quality: A term that a process is particularly well controlled. (i.e., no more than six sigma from the centerline in a control chart). Widely used by suppliers.


Skid: See pallet.


SKU: See Stock Keeping Unit.


SL&C: Shipper's Load and Count


Slip Sheet: A square of heavy paper or cardboard that allows merchandise to be placed on or removed quickly from a trailer.


Slot: A location in a rack where pallets of merchandise are stored. Each slot has a number associated with it.


Smart Cards: Credit-card-sized packages containing one or more microchips, which may have IC memory and/or microprocessors. Able to hold significantly more information that a mag-stripe card.


SME: Small to Medium Enterprise: not a big company.


SMG: Slow Moving Goods: Can also refer to a distribution centre for such merchandise.


SNA: Systems network architecture. A proprietary IBM network known for robustness.


SNMP: Simple Network Management Protocol.


SOP : Standard Operating Procedure


SOP: See Sales and Operations Planning


Source Tagging: Attachment of electronic article surveillance tags to products or packaging by the vendor, particularly hidden tags.


SOW: See Statement of Work


Spam: A computer industry term referring to the Act of sending identical and irrelevant postings to many different newsgroups or mailing lists. Usually this posting is something that has nothing to do with the particular topic of a newsgroup or of no real interest to the person on the mailing list.


Specific, Measurable, Achievable, Realistic, Time-Based (SMART): A shorthand description of a way of setting goals and targets for individuals and teams.


Speech recognition: The process of converting an acoustic signal, captured by a microphone or a telephone, to a visual set of words.


SPIC: Simplified Procedure for Import Clearance


Split Delivery: A method by which a larger quantity is ordered on a purchase order to secure a lower price, but delivery is divided into smaller quantities and spread out over several dates to control inventory investment, save storage space, etc.


Spread Spectrum: Radio-frequency technology that requires no FCC site license. The frequency is constantly changed following a known algorithm to relieve conflict from multiple users at one frequency.


SQL: See Structured Query Language.


SSCC: Serialized Shipping Container Code.


Staging: Pulling material for an order from inventory before the material is required. This action is often taken to identify shortages, but it can lead to increased problems in availability and inventory accuracy. Also see: Accumulation Bin


Stakeholders: People with a vested interest in a company, including managers, employees, stockholders, customers, suppliers, and others.


Standalone: Can operate completely self-contained. Often implies continuous operation when the rest of a system is down.


Standard Cost: A management-focused accounting system meant to reduce distortions of tax- or finance-focused accounting systems. Also, the expected or target costs of an operation, process, or product including direct material, direct labor, and allocatable overhead charges. See Activity-Based Costing.


Statement of Work (SOW): 1) A description of products to be supplied under a contract. A good practice is for companies to have SOWs in place with their trading partners especially for all top suppliers. 2) In projection management, the first project planning document that should be prepared. It describes the purpose, history, deliverables, and measurable success indicators for a project. It captures the support required from the customer and identifies contingency plans for events tha t could throw the project off course. Because the project must be sold to management, staff, and review groups, the statement of work should be a persuasive document.


Statistical Quality Control (SQC): Techniques to control quality through sampling and statistical process control.


Stochastic Models: Ways to analyze businesses or operations where uncertainty is considered.


Stockchase: Moving shipments through regular channels at an accelerated rate; to take extraordinary action because of an increase in relative priority. Synonym: Expediting.


Stock-Keeping Unit (SKU): A single product of a specific brand, size, color, style, etc. (not a class of products). Sometimes includes a single product with a single price or promotional offering. Also the identification of a single product by a number. Also the product identifying number.


Stock-Outs: Merchandise that is requested by a customer but is temporarily unavailable. Also referred to Out of Stocks (OOS)


Stored-Value Card: A plastic card with value encoded on the magnetic stripe (or, in the case of a smart card, on the computer chip). With each use, the magnetic stripe or chip is re-encoded with updated value information. See ATM card or Debit Card or Smart Card.


Strategic Alliance: Business relationship in which two or more independent organizations cooperate and willingly modify their business objectives and practices to help achieve long-term goals and objectives. Also see: Marquee Partners


Structured Query Language (SQL): A computer language often used in analysis of relational databases. It uses English, is nonprocedural, and defines tables, screen layouts, indexes, etc.


Subcontracting: Sending production work outside to another manufacturer. This can involve specialized operations such as plating metals, or complete functional operations. Also see: Outsource


Substitution: Switching to a secondary, related item when a specifically ordered primary item is not available. A practice of many suppliers.


Substrate: Surface on which printing occurs.


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.


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 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 emarketplaces. Similar concept to the Back-End Integration, but with greater emphasis on the moving of goods and services.


Supply Chain Management (SCM) as defined by the Council of Logistics Management (CLM): "Definition - 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. Boundaries and Relationships - 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 centres, 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-Related IT Costs: Information Technology (IT) costs (in US dollars) associated with major supply-chain management processes as described below. These costs should include: Development costs (costs incurred in process reengineering, planning, software development, installation, implementation, and training associated with new and/or upgraded architecture, infrastructure, and systems to support the described supply-chain management processes), Execution costs (operating costs to support supply-chain process users, including computer and network operations, EDI and telecommunications services, and amortization/depreciation of hardware, Maintenance costs (costs incurred in problem resolution, troubleshooting, repair, and routine maintenance associated with installed hardware and software for described supply-chain management processes. Include costs associated with data base administration, systems configuration control, release planning and management. These costs are associated with the following processes: PLAN 1. Product Data Management - Product phase- in/phase-out and release; post introduction support & expansion; testing and evaluation; end-of-life inventory management. Item master definition and control. 2. Forecasting and Demand/Supply Manage and Finished Goods - Forecasting; end-item inventory planning, DRP, production master scheduling for all products, all channels. SOURCE 1. Sourcing/Material Acquisition - Material requisitions, purchasing, supplier quality engineering, inbound freight management, receiving, incoming inspection, component engineering, tooling acquisition, accounts payable. 2. Component and Supplier Management - Part number cross-references, supplier catalogues, approved vendor lists. 3. Inventory Management - Perpetual and physical inventory controls and tools. MAKE 1. Manufacturing Planning - MRP, production scheduling, tracking, mfg. engineering, mfg. documentation management, inventory/obsolescence tracking. 2. Inventory Management - Perpetual and physical inventory controls and tools. 3. Manufacturing Execution - MES, detailed and finite interval scheduling, process controls and machine scheduling. DELIVER 1. Order Management - Order entry/ maintenance, quotes, customer database, product/price database, accounts receivable, credits and collections, invoicing. 2. Distribution and Transportation Management - DRP shipping, freight management, traffic management. 3. Inventory Management - Perpetual and physical inventory controls and tools. 4. Warehouse Management - Finished goods, receiving and stocking, pick/pack. 5. Channel Management - Promotions, pricing and discounting, customer satisfaction surveys. 6. Field Service/Support - Field service, customer and field support, technical service, service/call management, returns and warranty tracking. EXTERNAL ELECTRONIC INTERFACES Plan/Source/Make/Deliver - Interfaces, gateways, and data repositories created and maintained to exchange supply-chain related information with the outside world. E-Commerce initiatives. Includes development and implementation costs. Note: Accurate assignment of IT-related cost is challenging. It can be done using Activity-Based-Costing methods, or using other approaches such as allocation based on user counts, transaction counts, or departmental headcounts. The emphasis should be on capturing all costs. Costs for any IT activities that are outsourced should be included.


Supply Planning: The process of identifying, prioritizing, and aggregating, as a whole with constituent parts, all sources of supply that are required and add value in the supply chain of a product or service at the appropriate level, horizon and interval.


Supply Planning Systems: The process of identifying, prioritizing, and aggregating, as a whole with constituent parts, all sources of supply that are required and add value in the supply chain of a product or service at the appropriate level, horizon and interval.


Supply Warehouse: A warehouse that stores raw materials. Goods from different suppliers are picked, sorted, staged, or sequenced at the warehouse to assemble plant orders.


Support Costs: Costs of activities not directly associated with producing or delivering products or services. Examples are the costs of information systems, process engineering and purchasing. Also see: Indirect Cost


Sustaining Activity: An activity that benefits an organizational unit as a whole, but not any specific cost object.


SVC: Satellite Vehicle Communications: on-board computers, GPS, satellite communications, etc.


SWB: Short Wheelbase: small van or truck (see also LWB).


Switches: In computer networks, switches can link several separate LANs and provide packet filtering between them. A LAN switch is a device with multiple ports, each of which can support an entire ethernet or token ring LAN.


SWOT: See SWOT Analysis


SWOT Analysis: An analysis of the strengths, weaknesses, opportunities, and threats of and to an organization. SWOT analysis is useful in developing strategy.


Symbology: A bar-code language (e.g. UPC-A, I 2 of 5, Code 128).


Synchronization: The concept that all supply chain functions are integrated and interact in real time; when changes are made to one area, the effect is automatically reflected throughout the supply chain.


Synchronization: The concept that all supply chain functions are integrated and interact in real time; when changes are made to one area, the effect is automatically reflected throughout the supply chain.


Syntax: The grammar or rules which define the structure of the EDI standard


System Design: Operations concept development. Software development, implementation and integration.

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