| Avoidance | Finding ways to minimize the number of items that are returned.
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| Bullwhip effect | Inventory oscillations become progressively larger looking backward through the supply chain.
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| Centralized purchasing | Purchasing is handled by one special department.
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| Collaborative Planning, Forecasting, and Replenishment (CPFR) | A supply chain initiative that focuses on information sharing among supply chain trading partners in planning, forecasting, and inventory replenishment.
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| Cross-docking | A technique whereby goods arriving at a warehouse from a supplier are unloaded from the supplier’s truck and loaded onto outbound trucks, thereby avoiding warehouse storage.
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| Decentralized purchasing | Individual departments or separate locations handle their own purchasing requirements.
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| Delayed differentiation | Production of standard components and subassemblies, which are held until late in the process to add differentiating features.
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| delay differentiation | Production of standard components and subassemlies, which are held until late in the process to add differentiating features.
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| disintermediation | Reducing one or more steps in a supply chain by cutting out one or more intermediaries.
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| distribution requirements planning (DRP) | A system for inventory manaement and distribution planning.
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| e-business | The use of electronic technology to facilitate business transactions.
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| event management | The ability to detect and respond to unplanned events.
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| fill rate | The percentage of demand filled from stock on hand.
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| gatekeeping | Screening returned goods to prevent incorrect acceptance of goods.
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| information velocity | The speed at which information is communicated in a supply chain.
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| inventory velocity | The speed at which goods move through a supply chain.
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| logistics | The movement of materials, services, cash, and information in a supply chain.
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| outsourcing | Buying goods or services instead of producing or providing them in-house.
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| purchasing cycle | Series of steps that begin with a request for purchase and end with notification of shipment received in satisfactory condition.
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| reverse logistics | The process of transporting returned items.
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| radio frequency identification (RFID) | A technology that uses radio waves to identify objects, such as goods in supply chains.
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| strategic partnering | Analyzing the procurement process to lower costs by reducing waste and nonvalue-added activities, increase profits, reduce risks, and improve supplier performance.
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| supply chain | A sequence of organizations—their facilities, functions, and activities—that are involved in producing and delivering a product or service.
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| supply chain management | The strategic coordination of the supply chain for the purpose of integrating supply and demand management.
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| supply chain visibility | A major trading partner can connect to its supply chain to access data in real time.
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| third-party logistics (3-PL) | The outsourcing of logistics management.
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| traffic management | Overseeing the shipment of incoming and outgoing goods.
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| Vendor analysis | Evaluating the sources of supply in terms of price, quality, reputation, and service.
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| vendor-managed inventory (VMI) | Vendors monitor goods and replenish retail inventories when supplies are low.
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