Supply Chain Management Glossary

The order of goods or services that can’t be filled at the current time due to a lack of availability.

Described by the World Bank as ‘the sustainable use of ocean resources for economic growth, improved livelihoods, and jobs while preserving the health of ocean ecosystem.’

A supply chain model that creates less waste by recycling discarded raw materials back into the manufacturing operation, ready to be sold again. This means it is not only more environmentally friendly, but cost-effective too.

Rather than managing their own warehouse and deliveries, some companies will use third-party vendors to store, fulfil, and ship orders directly to customers on their behalf. This is known as drop shipping.

Nowadays, when businesses share information or transactions such as purchase orders, quotes, and invoices, the data is transferred between computer systems rather than paper documents. An EDI converts data from one computer system into a standard format that can be read by another system.

Also known as cargo, it refers to any goods transported in bulk by land, sea, or air.

Incorporating environmentally friendly and sustainable practices into logistics and supply chains. Its aim is to reduce CO2 emissions, but other benefits include reduced waste production, lower production costs, improved perceived value, and increased overall profitability.

When a disaster strikes, emergency goods, people, and materials need to be available fast. It isn’t enough to simply react; humanitarian logistics involves forecasting and optimisation to ensure that aid is delivered to those who need it as quickly and efficiently as possible.

Interchangeable with The Fourth Industrial Revolution. A term used to describe the change in manufacturing driven by disruptive technologies such as artificial intelligence and machine learning. In the context of supply chains, this could manifest in ways such as smart manufacturing or warehousing.

The concept of a group of interconnected objects that use technology to monitor, report, and exchange data with other devices over the internet. In the supply chain, IoT devices can be used to track products and monitor storage conditions. Within an industrial setting, it can sometimes be referred to as the Industrial Internet of Things (IIoT).

Also known as stock management, this is about monitoring inventory on its journey through each point of the supply chain. It involves an understanding of supply and demand in order to gauge how much stock is needed at any one time.

The total price of a product by the time it arrives at its final destination. It takes into account the original price of the goods plus any other charges sustained along the way. These include transportation, storage, taxes, currency conversion, insurance, handling, and payment fees.

The most basic type of supply chain that flows in one direction from producer to consumer.

More than just the purchasing of services or goods, it requires a high level of strategic planning and involves several other business functions. Procurement can be split into three types: direct, indirect, and services procurement.

In a world of disruptions, being prepared for the unknown is essential. Be it global disasters or fluctuating consumer behaviour, resilient supply chains are ready for whatever comes their way; able to respond, adapt, and recover from disruptions with minimal impact.

Knowing what’s happening at each point in your supply chain is vital to its success. Ideally available in real time, supply chain visibility allows you to track and trace goods along their journey, providing an accurate picture of inventory and the effectiveness of supply chain activities.

Overseeing the relationship between your organisation and its suppliers to achieve the best value for products or services. It includes managing deliverables, developing new processes, and managing contract compliance.