| Accounts payable: | The department and process that receives and clears invoices from suppliers for goods and services received, and authorizes the release of funds for payment.
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| Bill of lading: | The contract between the shipper and carrier; contains information about the quantity shipped, origin, and final destination.
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| Excess (or surplus) material: | Stock in excess of a reasonable requirement of the organization that arises because of errors in the amount bought or because anticipated production did not materialize.
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| Hazardous waste: | Discarded material that exhibits certain specific hazardous characteristics, such as toxic, ignitable, corrosive, or dangerously reactive substances.
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| Inbound transportation: | An integral part of acquiring goods and services is ensuring proper, cost-effective delivery from suppliers into the buying organization's production processes or storage facilities.
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| Investment recovery: | Represents the effective, efficient, and profitable recovery and disposal of scrap, surplus, obsolete, and waste materials and assets generated within the firm.
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| Logistics activities: | Because of the need to control inventory levels and to coordinate material availability with production supply can involve logistics activities including inventory control, materials movement, scheduling and planning, and warehousing.
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| Obsolete material: | Material that is unlikely ever to be used inside the organization that purchased it, differs from excess stock which presumably could be consumed at some future date.
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| Outbound transportation: | The process related to the movement and storage of products from the end of the production line to the end user.
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| Packing slip: | A document produced by the supplier that provides information such as a description of the goods and quantity.
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| Production planning: | Involves short-, medium- and long-term schedules based on forecasts for controlling inventory and production schedules; requires coordinating the delivery and storage of key raw materials with suppliers.
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| Receiving: | The first step in the internal supply chain when the buying firm accepts responsibility for the goods; a critical part of the acquisition process involving inspection, physical handling of goods, and processing of information.
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| Rejected end products: | Because of the uncertainties of the production process, or because of complex end-product quality specifications, a certain percentage of completed products may be rejected by outgoing quality control as unsatisfactory.
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| Scrap material: | A term that may be applied to material or equipment that is no longer serviceable and has been discarded, or is a by-product of a production process such as warp ends from weaving or metal scrap from boring, drilling, and stamping machines; differs from excess or obsolete stock because it cannot properly be classified as new or unused.
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| Waste: | Material or supplies that have been changed during the production process and, through carelessness, faulty production methods, poor handling, or other causes, have been spoiled, broken, or otherwise rendered unfit for further use or reclamation.
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