Caboose
A caboose (US railway terminology) or brake van or guard’s van (British terminology) is a manned rail transport vehicle coupled at the end of a freight train. Although cabooses were once used on nearly every freight train in North America, their use has declined and they are seldom seen on trains, except on locals and smaller railroads.

Cabotage
(1) Trade or transport in coastal waters or between two ports/points within a country especially by parties other than domestic carriers. Many countries, such as the USA, have laws requiring domestic-owned vessels to perform domestic interport water transportation services. (2) A federal law that requires coastal and inter-coastal traffic to be carried in U.S.-built and registered ships.

CAD
see Computer Aided Design

CAE
see Computer Aided Engineering

CAF
see Currency Adjustment Factor

Cage
(1) A secure enclosed area for storing highly valuable items, (2) a pallet-sized platform with sides that can be secured to the tines of a forklift and in which a person may ride to inventory items stored will above the warehouse floor.

Caged
Referring to the practice of placing high-value or sensitive products in a fenced off area within a warehouse.

Calculation
To convert from working days to calendar days: if work week = 4 days, multiply by 1.75 = 5 days, multiply by 1.4 = 6 days, multiply by 1.17

Call Center
A facility housing personnel who respond to customer phone queries. These personnel may provide customer service or technical support. Call center services may be in-house or outsourced. Synonym: Customer Interaction Center.

CAM
see Computer Aided Manufacturing

Canadian Customs Invoice
A document required by Canadian Customs identifying shipper, seller, consignee, terms, date of shipment, material being sold/shipped, classification code, quantity, unit and total prices. Additional information may be required pertaining to the shipper and consignee arrangements.

Can-order Point
An ordering system used when multiple items are ordered from one vendor. The can-order point is a point higher than the original order point. When any one of the items triggers an order by reaching the must-order point, all items below their can-order point are also ordered. The can-order point is set by considering the additional holding cost that would be incurred should the item be ordered early.

Capability maturity model
A framework that describes the key elements of an effective software process. It’s an evolutionary improvement path from an immature process to a mature, disciplined process. The CMM covers practices for planning, engineering and managing software development and maintenance. When followed, these key practices improve the ability of organizations to meet goals for cost, schedule, functionality and product quality.

Capable to Promise
A technique used to determine if product can be assembled and shipped by a specific date. Component availability throughout the supply chain, as well as available materials, is checked to determine if delivery of a particular product can be made. The process of committing orders against available capacity as well as inventory. This process may involve multiple manufacturing or distribution sites. Capable-to-promise is used to determine when a new or unscheduled customer order can be delivered. Capable-to-promise employs a finite-scheduling model of the manufacturing system to determine when an item can be delivered. It includes any constraints that might restrict the production, such as availability of resources, lead times for raw materials or purchased parts, and requirements for lower-level components or subassemblies. The resulting delivery date takes into consideration production capacity, the current manufacturing environment, and future order commitments. The objective is to reduce the time spent by production planners in expediting orders and adjusting plans because of inaccurate delivery-date promises.

Capacity
The physical facilities, personnel and process available to meet the product or service needs of customers. Capacity generally refers to the maximum output or producing ability of a machine, a person, a process, a factory, a product, or a service. Also see: Capacity Management

Capacity Management
The concept that capacity should be understood, defined, and measured for each level in the organization to include market segments, products, processes, activities, and resources. In each of these applications, capacity is defined in a hierarchy of idle, non-productive, and productive views.

Capacity Planning
Assuring that needed resources (e.g., manufacturing capacity, distribution center capacity, transportation vehicles, etc.) will be available at the right time and place to meet logistics and supply chain needs.

CAPEX
A term used to describe the monetary requirements (CAPital EXPenditure) of an initial investment in new machines or equipment.

Capital
The resources, or money, available for investing in assets that produce output.

CAPP
see Computer Aided Process Planning

Car supply charge
A railroad charge for a shipper’s exclusive use of special equipment.

Cargo
The goods or merchandise transported by airplane, ship or vehicle.

Cargo Bays
Doors in a warehouse where vehicles back up to load/unload cargo.

Cargo Manifest
An invoice of all cargo loaded on board a vessel. Listing of all cargo on board a vessel is required by the relevant local authorities. Also Manifest

Carload Lot
A shipment that qualifies for a reduced freight rate because it is greater than a specified minimum weight. Since carload rates usually include minimum rates per unit of volume, the higher LCL (less than carload) rate may be less expensive for a heavy but relatively small shipment.

Carmack Amendment
An Interstate Commerce Act amendment that delineates the liability of common carriers and the bill of lading provision.

Carnet
Known as a ‘Merchandise Passport’, this Customs document permits the holder to carry or send special categories of goods temporarily into certain foreign countries without paying duties or posting bonds.

Carousel
Carousels are a technology used to store items for eventual picking or retrieval. There are two primary types of carousels and one related technology, all of which operate under some form of computer control. Since the late 1990s, carousels have been placed under the more general category of AS/RS.

Carriage and Insurance Paid To
Incoterm. Title and risk pass to buyer when delivered to carrier by seller who pays transportation and insurance cost to destination. Used for any mode of transportation.

Carriage Paid To
Incoterm. Title, risk and insurance cost pass to buyer when delivered to carrier by seller who pays transportation cost to destination. Used for any mode of transportation.

Carrier
Entity that is a motor carrier, water carrier or freight forwarder engaged in the business of transporting goods or people who, through a contract of carriage, procure the performance of carriage by rail, road, sea, air, inland waterway, or by a combination of modes.

Carrier Certificate and Release Order
Used to advise Customs of the shipment’s detailed information. Having this document, the carrier certifies that the firm or individual named in the certificate is the owner or consignee of the cargo.

Carrier Liability
A carrier is liable for all shipment loss, damage, and delay with exception’s of acts of God, act of a public enemy, act of a public authority, act of the shipper, and the goods’ inherent nature. Carriers may limit their liability based on the commodity code of the item.

Carrier’s Certificate
A release order used to advise customs of the details of the shipment, its ownership, port of lading, etc. By means of this document the carrier certifies that the firm or individual named in the certificate is the owner or consignee of the cargo. A U.S. Customs form used in lieu of a bill of lading.

Cartage
The motor freight connection on each end of an air freight link in a supply chain. See also drayage.

Cartage Agent
A ground transportation service company who provides pickup and delivery of freight in locations that cannot be served directly by an air or ocean carrier.

Cartel
A group of companies that agree to cooperate, rather than compete, in producing a product or service, thus limiting or regulating competition.

Case Code
The UPC number for a case of product. The UPC case code is different from the UPC item code. This is sometimes referred to as the ‘Shipping Container Symbol’ or ITF-14 code.

Cash Conversion Cycle
(1) In retailing, the length of time between the sale of products and the cash payments for a company’s resources.(2) In manufacturing, the length of time from the purchase of raw materials to the collection of accounts receivable from customers for the sale of products or services. Also see: Cash-to-Cash Cycle Time

Cash flow statement
See funds flow statement.

Cash-to-Cash Cycle Time
The time it takes for cash to flow back into a company after it has been spent for raw materials. Synonym: Cash Conversion Cycle. Calculation: Total Inventory Days of Supply + Days of Sales Outstanding - Average Payment Period for Material in days

Catalog Channel
A call center or order processing facility that receives orders directly from the customer based on defined catalog offerings and ships directly to the customer.

Categorical Plan
A method of selecting and evaluating suppliers that considers input from many departments and functions within the buyer’s organization and systematically categorizes that input. Engineering, production, quality assurance, and other functional areas evaluate all suppliers for critical factors within their scope of responsibility. For example, engineering would develop a category evaluating suppliers’ design flexibility. Rankings are developed across categories, and performance ratings are obtained and supplier selections are made. Also see: Weighted-Point Plan

Category management
Process of managing one category of a multi-category specified product as strategic business units. The practice empowers a category manager with full responsibility for the assortment decisions, inventory levels, shelf-space allocation, promotions and buying. With this authority and responsibility, the category manager is able to judge more accurately the consumer buying patterns, product sales and market trends of that category.

Causal Forecast
In forecasting, a type of forecasting that uses cause-and-effect associations to predict and explain relationships between the independent and dependent variables. An example of a causal model is an econometric model used to explain the demand for housing starts based on consumer base, interest rates, personal incomes, and land availability.

Cause and Effect Diagram
In quality management, a structured process used to organize ideas into logical groupings. Used in brainstorming and problem solving exercises. Also known as Ishikawa or fish bone diagram.

CBM
Cubic Metre. 1 cubic metre = 35,314 cubic feet.

CBT
see Computer Based Training

Cell
(1) A manufacturing or service unit consisting of a number of workstations, and the materials transport mechanisms and storage buffers that interconnect them. (2) Container slot where container fits into place on vessel.

Cellular manufacturing
A manufacturing approach in which equipment and workstations are arranged to facilitate small-lot, continuous-flow production. In a manufacturing ‘cell,’ all operations necessary to produce a component or subassembly are performed in close proximity, thus allowing for quick feedback between operators when quality problems and other issues arise. Workers in a manufacturing cell typically are cross-trained and, therefore, able to perform multiple tasks as needed.

Center-of-Gravity Approach
A supply chain planning methodology for locating distribution centers at approximately the location representing the minimum transportation costs between the plants, the distribution centers, and the markets.

Centralized authority
Management authority to make decisions is restricted to few managers.

Centralized Dispatching
The organization of the dispatching function into one central location. This structure often involves the use of data collection devices for communication between the centralized dispatching function, which usually reports to the production control department, and the shop manufacturing departments.

Centralized Inventory Control
Inventory decision making (for all SKUs) exercised from one office or department for an entire company.

Certificate of Analysis
A certification of conformance to quality standards or specifications for products or materials. It may include a list or reference of analysis results and process information. It is often required for transfer of the custody/ownership/title of materials.

Certificate of Compliance
A supplier’s certification that the supplies or services in question meet specified-requirements.

Certificate of Insurance
Insurance statement evidencing that a policy has been written and stating the coverage’s in general terms.

Certificate of origin
Document used to assure the buying country precisely which country produced the goods being shipped. Usually completed by a recognised chamber of commerce.

Certificate of public convenience and necessity
The grant of operating authority that is given to common carriers. A carrier must prove that a public need exists and that the carrier is fit, willing, and able to provide the needed service. The certificate may specify the commodities to be hauled, the area to be served, and the routes to be used.

Certificated carrier
A for-hire air carrier that is subject to economic regulation and requires an operating certification to provide service.

Certified Supplier
A status awarded to a supplier who consistently meets predetermined quality, cost, delivery, financial, and count objectives. Incoming inspection may not be required.

CFD
see Continuous Flow Distribution

CFR
see Cost and Freight

CFS
see Container Freight Station

CGMP
see Current good manufacturing practices

Chain of Customers
The sequence of customers who in turn consume the output of each other, forming a chain. For example, individuals are customers of a department store, which in turn is the customer of a producer, who is the customer of a material supplier.

Chain reaction
A chain of events described by W. Edwards Deming: improve quality, decrease costs, improve productivity, increase market with better quality and lower price, stay in business, provide jobs and provide more jobs.

Challenge and Response
A method of user authentication. The user enters an ID and password and, in return, is issued a challenge by the system. The system compares the user’s response to the challenge to a computed response. If the responses match, the user is allowed access to the system. The system issues a different challenge each time. In effect, it requires a new password for each logon.

Champion
A business leader or senior manager who ensures that resources are available for training and projects, and who is involved in project tollgate reviews, also an executive who supports and addresses Six Sigma organizational issues.

Change agent
An individual from within or outside an organization who facilitates change within the organization. May or may not be the initiator of the change effort.

Change Management
The business process that coordinates and monitors all changes to the business processes and applications operated by the business as well as to their internal equipment, resources, operating systems, and procedures. The change management discipline is carried out in a way that minimizes the risk of problems that will affect the operating environment and service delivery to the users.

Change Order
A formal notification that a purchase order must be modified resulting in a change of quantity, date, or specification by the customer, change in inventory requirement data, etc.

Changeover
Process of making necessary adjustments to change or switchover the type of products produced on a manufacturing line. Changeovers usually lead to downtime and for the most part companies try to minimize changeover time to help reduce costs.

Channel
(1) A method whereby a business dispenses its product, such as a retail or distribution channel, call center or web based electronic storefront.(2) A push technology that allows users to subscribe to a website to browse offline, automatically display updated pages on their screen savers, and download or receive notifications when pages in the website are modified. Channels are available only in browsers that support channel definitions, such as Microsoft Internet Explorer version 4.0 and above.

Channel Charging area
A warehouse area where a company maintains battery chargers and extra batteries to support a fleet of electrically powered materials handling equipment. The company must maintain this area in accordance with government safety regulations.

Channel Conflict
This occurs when various sales channels within a company’s supply chain compete with each other for the same business. An example is where a retail channel is in competition with a web based channel set up by the company.

Channel Partners
Members of a supply chain (i.e. suppliers, manufacturers, distributors, retailers, etc.) who work in conjunction with one another to manufacture, distribute, and sell a specific product.

Channels of Distribution
Any series of firms or individuals that participates in the flow of goods and services from the raw material supplier and producer to the final user or consumer. Also see: Distribution

Chargeable Weight
The weight or volume of a shipment used in determining charges. The chargeable weight could be the dimensional weight or on container shipments, the gross weight of the shipment minus the containers tare weight.

Chassis
Trailer or wheeled unit on which a container is placed in order to move container over the road.

Chock
(1) Material, such as a piece of wood, that is placed at the side of cargo to prevent rolling or sideways movement. (2) A wedge, usually made of hard rubber or steel, that is firmly placed under the wheel of a trailer, truck, or boxcar to stop it from rolling.

CI
see Continuous Improvement

CIF
see Cost, Insurance and Freight

CIM
see Computer Integrated Manufacturing

CIP
see Carriage and Insurance Paid To

City driver
A motor carrier driver who drives a local route as opposed to a long-distance, intercity route.

Civil Aeronautics Board
A federal regulatory agency that implemented economic regulatory controls over air carriers.

CL
Carload rail service requiring shipper to meet minimum weight.

Claim
A demand for compensation due to non-compliance, damages or injury as authorized by contract or Law.

Claim Tracer
Request for advice concerning the status of a claim.

Claims
Shipper’s statement of shipment loss or damage and a demand for compensation.

Class I carrier
A classification of regulated carriers based upon annual operating revenues–motor carriers of property: > or = $5 million, railroads: > or =$50 million, motor carriers of passengers: > or =$3 million.

Class II carrier
A classification of regulated carriers based upon annual operating revenues–motor carriers of property: $1-$5 million, railroads: $10-$50 million, motor carriers of passengers: < or = $3 million.

Class III carrier
A classification of regulated carriers based upon annual operating revenues–motor carriers of property: < or = $1 million, railroads: < or = $10 million.

Class rate
A rate constructed from a classification and a uniform distance system. A class rate is available for any product between any two points.

Class Rates
Numeral assigned by the American Trucking Associations to an item or group of items to determine the applicable rate. All the items in the group make up a class. The freight rates that apply to all items in the class are known as ‘class rates.’

Classification
An alphabetical listing of commodities, the class or rating into which the commodity is placed, and the minimum weight necessary for the rate discount, used in the class rate structure. This systematic categorization of cargo is done for the purpose of applying class rates, combined with governing rules and regulations for transportation. In Customs, the classification determines the duty status of imported merchandise within the Harmonized Tariff Schedule of the United States (HSUS). The classification is the responsibility of an importer Customs broker or designated individual preparing the entry papers.

Classification yard
A railroad terminal area where rail cars are grouped together to form train units.

CLCA
see Closed-loop corrective action

Clean On Board
A clause inserted in the bill of lading by some shipping/transportation companies, stating that they have not noted or are not familiar with any irregularities or discrepancies in the packing or in the general condition of any part of the goods or its description.

Clearance
The completion of Customs entry requirements resulting in the release of goods from Customs authority to the importer.

Clearinghouse
A conventional or limited purpose entity generally restricted to providing specialized services, such as clearing funds or settling accounts.

Cleat
A strip of wood or metal that is used for additional strength and support, to prevent warping and allowing for support.

Click-and-Mortar
With reference to a traditional brick-and-mortar company that has expanded its presence online. Many brickand- mortar stores are now trying to establish an online presence but often have a difficult time doing so for many reasons. Clickand- mortar is ‘the successful combination of online and real world experience.’

Client Agency
A using agency benefiting by a purchase made or a contract established by a procurement administration.

Clip Art
A collection of icons, buttons, and other useful image files, along with sound and video files that can be inserted into documents/web pages.

Clipboard
A temporary storage area on a computer for cut or copied items.

CLM
see Council of Logistics Management

Closed-loop corrective action
A sophisticated engineering system designed to document, verify and diagnose failures, recommend and initiate corrective action, provide follow-up and maintain comprehensive statistical records.

Closed-loop MRP
A system built around material requirements planning that includes the additional planning processes of production planning (sales and operations planning), master production scheduling, and capacity requirements planning. Once this planning phase is complete and the plans have been accepted as realistic and attainable, the execution processes come into play. These processes include the manufacturing control processes of input-output (capacity) measurement, detailed scheduling and dispatching, as well as anticipated delay reports from both the plant and suppliers, supplier scheduling, and so on. The term closed loop implies not only that each of these processes is included in the overall system, but also that feedback is provided by the execution processes so that the planning can be kept valid at all times.

CMI
see Co-Managed Inventory

CMM
see Capability maturity model

CMMS
see Computerized Maintenance Management Systems

COA
see Certificate of Analysis

Coastal carriers
Water carriers that provide service along coasts serving ports on the Atlantic or Pacific oceans or on the Gulf of Mexico

Codabar
Codabar is a variable length barcode that can encode 16 data characters including 0-9, plus the symbols - $ , / . +. Codabar is used primarily for numeric data.

Code
A numeric, or alphanumeric, representation of text for exchanging commonly used information. For example: commodity codes, carrier codes,

Code 128 Auto
Code 128 is a variable length barcode capable of encoding the entire 128 character ASCII character set. Code 128 allows three subsets, A, B and C. This version, ‘Code 128 Auto’, automatically selects the subset that will produce the smallest barcode.

Code 128A
Code 128 is a variable length barcode capable of encoding the entire 128 character ASCII character set. Code 128 allows three subsets, A, B and C. This subset (A) allows all standard upper case alpha-numeric keyboard characters plus control characters.

Code 128B
Code 128 is a variable length barcode capable of encoding the entire 128 character ASCII character set. Code 128 allows three subsets, A, B and C. This subset (B) allows all standard upper case alpha-numeric keyboard characters and lower case alpha characters.

Code 128C
Code 128 is a variable length barcode capable of encoding the entire 128 character ASCII character set. Code 128 allows three subsets, A, B and C. This subset (C) includes a set of 100 digit pairs from 00 to 99 inclusive. This allows double density numeric digits, two digits per barcoded character.

Code 3 of 9
This barcode is an alphanumeric barcode allowing upper case letters and numbers. Each character consists of nine elements. 3 of the nine elements are wide, hence the name ‘3 of 9′.

Code 93
Code 93 is an alpha-numeric barcode allowing upper case letters and numbers. BarCode/VBX will convert lower case letters to upper case before encoding them.

Code of Ethics
A written publication of behavioral aspects required of appointed, elected or individuals under the employment of a jurisdiction.

Co-destiny
The evolution of a supply chain from intra-organizational management to inter-organizational management.

Codifying
The process of detailing a new standard.

COFC
Container on Flat Car. Rail service whereby a container is loaded onto a flat car without chassis, bogies or wheels.

COGS
see Cost of Goods Sold

Collaboration
Joint work and communication among people and systems including business partners, suppliers, and customers to achieve a common business goal.

Collaborative planning, forecasting, and replenish
(1) A collaboration process whereby supply chain trading partners can jointly plan key supply chain activities from production and delivery of raw materials to production and delivery of final products to end customers. Collaboration encompasses business planning, sales forecasting, and all operations required to replenish raw materials and finished goods. (2) CPFR: A process philosophy for facilitating collaborative communications. CPFR is considered a standard, endorsed by the Voluntary Interindustry Commerce Standards.

Collaborative Product Commerce
A set of activities and functions that enable collaboration between business partners in the supply chain.

Collusion
An alliance between bidders or persons designed to interfere with just accomplishment of a purpose or a fair opportunity to bid.

Column
Two or more units tiered on top of one another.

Co-Managed Inventory
A form of continuous replenishment in which the manufacturer is responsible for replenishment of standard merchandise, while the retailer manages the replenishment of promotional merchandise.

Combined Lead Time
See Cumulative Lead Time

Combined Transport Bill of Lading
Provides a combined transport by at least two different modes of transportation from a place from which the goods are taken to a place designated for delivery.

Commercial Invoice
A document produced by the shipper/seller of goods which contains an accurate description of the merchandise and the country of origin. All items are itemised and with actual price. required document identifying the transaction between a seller and buyer. The form should have the invoice number, date, shipping date, the mode of transport, delivery and payment terms, description of goods and the quantity. Custom’s requires a commercial invoice that includes the following information. (1) The port of entry. (2) Name of shipper and receiver. (3) Description of items. (4) Quantity in weight and measures. (5) Country of origin. The invoice and any attachments must be in the English language.

Commercial Law
Law regulating Commerce and trade activities. Such Laws provide direction for purchasing personnel as well as suppliers. Reference ‘Uniform Commercial Code’.

Commercial zone
The area surrounding a city or town to which rates quoted for the city or town also apply, the area is defined by the ICC.

Committed Capability
The portion of the production capability that is currently in use, or is scheduled for use.

Committee of American Steamship Lines
An industry association representing subsidized U.S. Flag steamship firms.

Commodities
Any article of goods shipped.

Commodities clause
A clause that prohibits railroads from hauling commodities that they produced, mined, owned, or had an interest in.

Commodity
Any tangible item of property purchased, leased or otherwise obtained by the State and its agencies. Includes deferred payment interest on purchase of tangible personal property and letting of publications upon contract. Commodity does not include goods/property purchased for resale.

Commodity Buying
Grouping like parts or materials under one buyer’s control for the procurement of all requirements to support production.

Commodity Code
A code describing a commodity or a group of commodities pertaining to the goods classification.

Commodity Procurement Strategy
The purchasing plan for a family of items. This would include the plan to manage the supplier base and solve problems.

Commodity Rate
A rate that will be used for a specific commodity and its origin-destination locations.

Common Carrier
Transportation available to the public that does not provide special treatment to any one party and is regulated as to the rates charged, the liability assumed, and the service provided. A common carrier must obtain a certificate of public convenience and necessity from the Federal Trade Commission for interstate traffic.See also dedicated carrier.

Common carrier duties
Common carriers are required to serve, deliver, charge reasonable rates, and not discriminate.

Common cost
A cost that cannot be directly assignable to particular segments of the business but that is incurred for the business as a whole.

Common Point
Point reached by two or more transportation lines.

Common Tariff
Tariff published by or for the account of two or more transportation lines as issuing carriers.

Communication Protocol
The method by which two computers coordinate their communications. BISYNC and MNP are two examples.

Commuter
An exempt for-hire air carrier that publishes a time schedule on specific routes, a special type of air taxi.

Company Culture
A system of values, beliefs, and behaviors inherent in a company. To optimize business performance, top management must define and create the necessary culture.

Company Guarantee
A letter of guarantee from a company indemnifying the carrier of responsibility associated with the release of goods in lieu of a bill of lading.

Comparative advantage
A principle based on the assumption that an area will specialize in the production of goods for which it has the greatest advantage or least comparative disadvantage.

Competitive Advantage
Value created by a company for its customers that clearly distinguishes it from the competition, and provides its customers a reason to remain loyal.

Competitive Benchmarking
Benchmarking a product or service against competitors. Also see: Benchmarking

Competitive Bid
A price/service offering by a supplier that must compete with offerings from other suppliers.

Competitive Quotations
A purchasing method used to obtain competitive pricing for goods when the anticipated cost is less than the amount required for formal or competitive sealed bids. This method is used only for small purchasers and should be documented or recorded by written statements from the suppliers.

Competitive Sealed Bidding
A method of acquiring goods above a certain dollar amount when various sources are available. This procurement process allows for levels of quality, terms and conditions to be defined while obtaining competitive pricing.

Competitive Sealed Proposals
A method of establishing a contract for source selection by issuing a request for competitive offers whereby negotiation and changes in the offers may be allowed to secure the most advantageous and cost effective terms for the purchaser.

Complete & On-Time Delivery
A measure of customer service. All items on any given order must be delivered on time for the order to be considered as complete and on time

Complete Manufacture to Ship Time
Average time from when a unit is declared shippable by manufacturing until the unit actually ships to a customer.

Compliance
Meaning that products, services, processes and/or documents comply with requirements.

Compliance Checking
The function of EDI processing software that ensures that all transmissions contain the mandatory information demanded by the EDI standard. Compares information sent by an EDI user against EDI standards and reports exceptions. Does not ensure that documents are complete and fully accurate, but does reject transmissions with missing data elements or syntax errors.

Compliance Monitoring
A check done by the VAN/third party network or the translation software to ensure the data being exchanged is in the correct format for the standard being used.

Compliance Program
A method by which two or more EDI trading partners periodically report conformity to agreed upon standards of control and audit. Management produces statements of compliance, which briefly note any exceptions, as well as corrective action planned or taken, in accordance with operating rules. Auditors produce an independent and objective statement of opinion on management statements.

Component
Material that will contribute to a finished product but is not the finished product itself. Examples would include tires for an automobile, power supply for a personal computer, or a zipper for a ski parka. Note that what is a component to the manufacturer may be considered the finished product of their supplier.

Computer Aided Design
Computer-based systems for product design that may incorporate analytical and ‘what if’ capabilities to optimize product designs. Many CAD systems capture geometric and other product characteristics for engineeringdata- management systems, producibility and cost analysis, and performance analysis. In many cases, CAD-generated data

Computer Aided Engineering
The use of computers to model design options to stimulate their performance.

Computer Aided Manufacturing
Computerized systems in which manufacturing instructions are downloaded to automated equipment or to operator workstations.

Computer Aided Process Planning
Software-based systems that aid manufacturing engineers in creating a process plan to manufacture a product who’s geometric, electronic, and other characteristics have been captured in a CAD database. CAPP systems address such manufacturing criteria as target costs, target lead times, anticipated production volumes, availability of

Computer Based Training
Training that is delivered via computer workstation and includes all training and testing materials.

Computer Integrated Manufacturing
A variety of approaches in which computer systems communicate or interoperate over a local-area network. Typically, CIM systems link management functions with engineering, manufacturing, and support operations. In the factory, CIM systems may control the sequencing of production operations, control operation of automated equipment and conveyor systems, transmit manufacturing instructions, capture data at various stages of the manufacturing or assembly process, facilitate tracking and analysis of test results and operating parameters, or a combination of these.

Computerized Maintenance Management Systems
Software-based systems that analyze operating conditions of production equipment : vibration, oil analysis, heat, etc. : and equipment-failure data, and apply that data to the scheduling of maintenance and repair inventory orders and routine maintenance functions. A CMMS prevents unscheduled machine downtime and optimizes a plant’s ability to process product at optimum volumes and quality levels.

Computerized process simulation
Use of computer simulation to facilitate sequencing of production operations, analysis of production flows, and layout of manufacturing facilities.

Computerized SPC
See Statistical process control

Concealed Damage
Damage to the contents of a package that is in good condition externally.

Concurrent engineering
A cross-functional, team-based approach in which the product and the manufacturing process are designed and configured within the same time frame, rather than sequentially. Ease and cost of manufacturability, as well as customer needs, quality issues, and product-life-cycle costs are taken into account earlier in the development cycle. Fully configured concurrent engineering teams include representation from marketing, design engineering, manufacturing engineering, and purchasing, as well as supplierand even customercompanies.

Conference
Defined in the 1984 Shipping Act as: … an association of ocean common carriers permitted, pursuant to an approved or effective agreement, to engage in concerted activity and to utilise a common tariff, but the term does not include a joint service, consortium, pooling, sailing or transshipment arrangement. It is basically a group of steamship companies offering equitable freight rates, standardised shipping practices and regularly scheduled services between designated ports. These arrangements are given anti-trust immunity as authorised by the 1984 Shipping Act.

Confidential Information (also, Proprietary Inform
Any information conveyed to a public employee, due to position in the procurement process, by a manufacturer of firm such as, product testing or trade secret which would not be available as general knowledge.

Configuration
The arrangement of components as specified to produce an assembly of product.

Configure/Package-to-Order
A process where the trigger to begin manufacture, final assembly or packaging of a product is an actual customer order or release, rather than a market forecast. In order to be considered a Configure-to-Order environment, less than 20% of the value-added takes place after the receipt of the order or release, and virtually all necessary design and process documentation is available at time of order receipt.

Confirmation
With regards to EDI, a formal notice (by message or code) from a electronic mailbox system or EDI server indicating that a message sent to a trading partner has reached its intended mailbox or been retrieved by the addressee.

Confirming Order
A purchase order issued to a supplier, listing the goods or services and terms of an order placed orally or otherwise before the usual purchase document.

Conflict of Interest
Interests or involvements that a public employee or a commerce representative may have which would weaken a decision process and not be fair and impartial to business negotiations.

Conformance
An affirmative indication or judgment that a product or service has met the requirements of a relevant specification, contract, or regulation. Synonym: Compliance.

Conrail
The Consolidated Rail Corporation established by the Regional Reorganization Act of 1973 to operate the bankrupt Penn Central Railroad and other bankrupt railroads in the Northeast, funding was provided by the 4-R Act of 1976.

Consensus
A state in which all the members of a group support an action or decision, even if some of them don’t fully agree with it.

Consignee
The party to whom goods are shipped and delivered. The receiver of a freight shipment.

Consignment
(1) A shipment that is handled by a common carrier. (2) The process of a supplier placing goods at a customer location without receiving payment until after the goods are used or sold. (3) Agreement by which one signs over the delivery of a quantity of goods to another. See: Consignment Inventory

Consignment Inventory
(1) Goods or product that are paid for when they are sold by the reseller, not at the time they are shipped to the reseller. (2) Goods or products which are owned by the vendor until they are sold to the consumer.

Consignor
Person normally shown on shipping documents as authorized at origin to release goods to a transportation company. The party who originates a shipment of goods (shipper). The sender of a freight shipment, usually the seller.

Consolidation
(1) A number of separate shipments that are assembled into one shipment for movement on one waybill from one location to another. Consolidation of freight can result in reduced shipping rates. (2) The placing of LCL/LTL cargo from several sources into a container in order to fill the container and obtain a better per-unit cost for shipping.

Consortium
A group of companies that work together to jointly produce a product, service, or project.

Constraint
A bottleneck, obstacle or planned control that limits throughput or the utilization of capacity.

Constraint-based planning and scheduling
Planning and scheduling following the Theory of Constraints rules

Consul
A government official residing in a foreign country representing the interests of her or his country and its nationals.

Consular Declaration
A formal statement describing goods to be shipped, filed with and approved by the consul of the country of destination prior to shipment.

Consular Invoice
A document, certified by a consular official, may be required in some countries to describe a shipment. Used by Customs of the foreign country, to verify the value, quantity and nature of the cargo.

Consular Visa
An official signature or seal affixed to certain documents by the consul of the country of destination.

Consumer Packaged Goods
Consumable goods such as food and beverages, footwear and apparel, tobacco, and cleaning products. In general, CPGs are things that get used up and have to be replaced frequently, in contrast to items that people usually keep for a long time, such as cars and furniture.

Consumer-Centric Database
Database with information about a retailer’s individual consumers, used primarily for marketing and promotion.

Consuming the Forecast
The process of reducing the forecast by customer orders or other types of actual demands as they are received. The adjustments yield the value of the remaining forecast for each period.

Container
(1) A reusable, rigid exterior shipping box, typically 10 to 40 feet long that is used to ship goods by ship, truck or rail. It is a weatherproof box designed for the shipment of freight, generally used for overseas shipments. The container is separable from the chassis when loaded onto vessels or rail cars. (2) The packaging type including a carton, case, box, that an item is packed and transported in.

Container Depot
Location, other than a container yard, maintained by or on behalf of an ocean carrier at which shippers or consignees may pick up or drop off empty equipment. No loaded containers may be received at CDs and such locations may not be owned or controlled by a shipper or his agent.

Container Freight Station
The physical facility where goods are received by carrier for loading into containers or unloading from containers and where carrier may assemble, hold, or store its containers or trailers.

Container Security Initiative
U.S. Customs program to prevent global containerized cargo from being exploited by terrorists. Designed to enhance security of sea cargo container.

Container Service Charge
The charge assessed by the terminal for the positioning of containers within the terminal/yard.

Container Stuffing List
List showing how cargo is stowed in each container.

Container Yard
Area adjacent to the vessel berth where containers are delivered to and received from the vessel or inland carrier. The facility for holding Full Container Load (FCL) and empty containers that are received from or delivered to consignors or consignees by or on behalf of a carrier. It also provides a location to receive merchandise from consignors for packing into containers.

Containerization
A shipment method in which commodities are placed in containers, and after initial loading, the commodities per se are not re-handled in shipment until they are unloaded at the destination.

Contaminant
A term used in the paper making or recycling meaning any undesired substances such as food, food containers, plastics, metal, ink or silicon which may degrade the end product.

Contingency
An allowance made to provide for or protect desirable conditions in the future. Such conditions that may be threatened by causes or events unforeseeable in the future.

Contingency planning
Preparing to deal with calamities (e.g., floods) and non-calamitous situations (e.g., strikes) before they occur

Continuous Flow Distribution
The streamlined pull of products in response to customer requirements while minimizing the total costs of distribution.

Continuous Improvement
A structured measurement driven process that continually reviews and improves performance.

Continuous Process Improvement
A never-ending effort to expose and eliminate root causes of problems, small-step improvement as opposed to big-step improvement. Synonym: Continuous Improvement. Also see: Kaizen

Continuous Replenishment
Continuous Replenishment is the practice of partnering between distribution channel members that changes the traditional replenishment process from distributor-generated purchase orders, based on economic order quantities, to the replenishment of products based on actual and forecasted product demand.

Continuous Replenishment Planning
A program that triggers the manufacturing and movement of product through the supply chain when the identical product is purchased by an end user.

Continuous-flow, fixed-path equipment
Materials handling devices that include conveyors and drag lines.

Contract
An agreement between two or more competent persons or companies to perform or not to perform specific acts or services or to deliver merchandise. A contract may be oral or written. A purchase order, when accepted by a supplier, becomes a contract. Acceptance may be in writing or by performance, unless the purchase order requires acceptance in writing.

Contract Administration
The management and monitoring of legal agreements to ascertain that the contractor’s commitments to the purchasing entity are being fulfilled according to contract.

Contract Carrier
A carrier that does not serve the general public, but provides transportation for hire for one or a limited number of shippers under a specific contract.

Contribution
The difference between sales price and variable costs. Contribution is used to cover fixed costs and profits.

Contribution Margin
An amount equal to the difference between sales revenue and variable costs.

Controlled Access
Referring to an area within a warehouse or yard that is fenced and gated. These areas are typically used to store high-value items and may be monitored by security cameras

Convenience Termination Clause
A condition stated in a contract that allows the purchasing entity to cancel the agreement partly or entirely and settle any valid claims with the contractor as appropriate and according to the conditional clause.

Converter
A manufacturing firm which constructs from one usable material a product to be used for a different purpose. For example: processing sheet or roll papers to manufacture envelopes.

Conveyor
A materials handling device that moves freight from one area to another in a warehouse. Roller conveyors make sue of gravity, whereas belt conveyors use motors.

Cookie
A computer term. A piece of information from your computer that references what the user has clicked on, or references information that is stored in a text file on the user’s hard drive (such as a username). Another way to describe cookies is to say they are tiny files containing information about individual computers that can be used by advertisers to track online interests and tastes. Cookies are also used in the process of purchasing items on the Web. It is because of the cookie that the ’shopping cart’ technology works. By saving in a text file, the name, and other important information about an item a user ‘clicks’ on as they move through a shopping Website, a user can later go to an order form, and see all the items they selected, ready for quick and easy processing.

Cooperative associations
Groups of firms or individuals having common interests: agricultural cooperative associations may haul up to 25% of their total interstate tonnage in nonfarm, nonmenber goods in movements incidental and necessary to their primary business.

Cooperative Purchasing
The assessment of consumer needs between government agencies in order to centralize a procurement process. This endeavor would contribute to a reduction of administration as well as provide lower costs by volume purchasing.

Co-opetition
A combination of cooperation and competition that offers the counter intuitive possibility for rivals to benefit from each other’s seemingly competitive activities. In short, there are circumstances where having more players to cut the pie means bigger pieces of pie for everyone. An example would be found in the group buying setting where its use refers to the activity of multiple, normally competitive buying group members leveraging each other’s buying power to gain reduced pricing.

Coordinated transportation
Two or more carriers of different modes transporting a shipment.

Co-Packer
A contract co-packer produces goods and/or services for other companies, usually under the other company’s label or name. Co-Packers are more frequently seen in CPG and Foods.

Co-product
The term co-product is used to describe multiple items that are produced simultaneously during a production run. Co-products are often used to increase yields in cutting operations such as die cutting or sawing when it is found that scrap can be reduced by combining multiple-sized products in a single production run. Co-products are also used to reduce the frequency of machine setups required in these same types of operations. Co-products, also known as byproducts, are also common in process manufacturing such as in chemical plants. Although the concept of co-products is fairly simple, the programming logic required to provide for planning and processing of co-products is very complicated.

Core Competency
A company’s primary function considered essential to its success. Bundles of skills or knowledge sets that enable a firm to provide the greatest level of value to its customers in a way that is difficult for competitors to emulate and that provides for future growth. Core competencies are embodied in the skills of the workers and in the organization. They are developed through -collective -learning, communication, and commitment to work across levels and functions in the organization and with the customers and suppliers. For example, a core competency could be the capability of a firm to coordinate and harmonize diverse production skills and multiple technologies. To illustrate, advanced casting processes for making steel require the integration of machine design with sophisticated sensors to track temperature and speed, and the sensors require mathematical modeling of heat transfer. For rapid and effective development of such a process, materials scientists must work closely with machine designers, software engineers, process specialists, and operating personnel. Core competencies are not directly related to the product or market.

Core Process
That unique capability that is central to a company’s competitive strategy.

Cost Accounting
The branch of accounting that is concerned with recording and reporting business operating costs. It includes the reporting of costs by departments, activities, and products.

Cost Allocation
In accounting, the assignment of costs that cannot be directly related to production activities via more measurable means, e.g., assigning corporate expenses to different products via direct labor costs or hours.

Cost and Freight
Incoterm. Title, risk and insurance cost pass to buyer when delivered on board the ship by seller who pays the transportation cost to the destination port. Used for sea or inland waterway transportation.

Cost Center
In accounting, a sub-unit in an organization that is responsible for costs.

Cost Driver
In accounting, any situation or event that causes a change in the consumption of a resource, or influences quality or cycle time. An activity may have multiple cost drivers. Cost drivers do not necessarily need to be quantified, however, they strongly influence the selection and magnitude of resource drivers and activity drivers.

Cost Driver Analysis
In cost accounting, the examination, quantification, and explanation of the effects of cost drivers. The results are often used for continuous improvement programs to reduce throughput times, improve quality, and reduce cost.

Cost Element
In cost accounting, the lowest level component of a resource, activity, or cost object.

Cost Management
The management and control of activities and drivers to calculate accurate product and service costs, improve business processes, eliminate waste, influence cost drivers, and plan operations. The resulting information will have utility in setting and evaluating an organization’s strategies.

Cost of Capital
The cost to borrow or invest capital.

Cost of Goods Sold
The amount of direct materials, direct labor, and allocated overhead associated with products sold during a given period of time, determined in accordance with Generally Accepted Accounting Principles (GAAP)

Cost of lost sales
The forgone profit associated with a stockout.

Cost of Money
The amount of interest that would be earned if the dollar value of inventory were invested at the State’s current investments earning rate.

Cost trade-off
The interrelationship among system variables indicates that a change in one variable has cost impact upon other variables. A cost reduction in one variable may be at the expense of increased cost for other variables, and vice versa.

Cost Variance
In cost accounting, the difference between what has been budgeted for an activity and what it actually costs.

Cost, Insurance and Freight
Incoterm.Title and risk pass to buyer when delivered on board the ship by seller who pays transportation and insurance cost to destination port. Used for sea or inland waterway transportation.

Cost-optimized
A product or service in which the trade-off between cost and performance has been analyzed and optimized from a cost point of view.

COTD
see Complete & On-Time Delivery

Council of Logistics Management
See Council of Supply Chain Management Professionals.

Council of Supply Chain Management Professionals
The CSCMP is a not-for-profit professional business organization consisting of individuals throughout the world who have interests and/or responsibilities in logistics and supply chain management, and the related functions that make up these professions. Its purpose is to enhance the development of the logistics and supply chain management professions by providing these individuals with educational opportunities and relevant information through a variety of programs, services, and activities.

Country of Destination
The country that will be the final destination for goods.

Country of Origin
The country where the goods have been manufactured.

Courier service
A fast, door-to-door service for high-valued goods and documents, firms usually limit service to shipments of 50 pounds or less.

Course
A single layer of units making up a unit load. Also tier.

Course Pattern
The arrangement of a group of units in a course (See uni-block multi-block pinwheel and irregular patterns).

CPC
see Collaborative Product Commerce

CPFR
see Collaborative planning, forecasting, and replenishment

CPG
see Consumer Packaged Goods

CPI
see Continuous Process Improvement

CPT
see Carriage Paid To

Crane
A handling device that lifts heavy items, usually serviced by a third party company.

Crate
A rigid shipping container of framed construction joined together with nails, bolts, or any equivalent method of fastening. The framework may or may not be enclosed with sheathing.

Credit Level
The amount of purchasing credit a customer has available. Usually defined by the internal credit department and reduced by any existing unpaid bills or open orders.

Credit Terms
An agreement between two or more enterprises concerning the amount and timing of payment for goods or services.

Credit Transaction
The return of a commodity to inventory from a cost center, increasing the value of inventory and restoring budget dollars to the cost center. Only allowed for commodities that are unused and usable for the intended purpose (i.e. have not exceeded the manufacturer’s recommended use date or expiration date).

Critical Data
A term that defines electronic data that is irreplaceable to a customer. This data is needed to support/maintain business operations.

Critical Differentiators
This is what makes an idea, product, service or business model unique.

Critical Stock
A commodity that must be maintained in inventory, though little used, to respond to expressed need. These commodities do not necessarily meet the criteria to be classified as emergency stock but are required to keep equipment or programs operating.

Critical Success Factor
Those activities and/or processes that must be completed and/or controlled to enable a company to reach its goals.

Critical value analysis
A modified ABC analysis in which a subjective value of criticalness is assigned to each item in the inventory.

CRM
see Customer Relationship Management

Cross Aisle
A passageway at right angles to main aisles, used for the movement of supplies, equipment and personnel.

Cross Docking
A distribution system in which merchandise received at the warehouse or distribution center is not put away, but instead is readied for shipment to retail stores. Cross docking requires close synchronization of all inbound and outbound shipment movements. By eliminating the put-away, storage and selection operations, it can significantly reduce distribution costs.

Cross functional
A term used to describe a process or an activity that crosses the boundary between functions. A cross functional team consists of individuals from more than one organizational unit or function.

Cross Sell
The practice of attempting to sell additional products to a customer during a sales call. For example, when the CSR presents a camera case and accessories to a customer that is ordering a camera

Cross Stacking
The placing of a layer of containers at right angles to those just below to increase the stability of the stack.

Cross Tie
Cross layers of supplies as in cross stacking except that only an occasional layer is crossed and not every other one.

Crossdocking
The acquiring of commodities by a distribution center using just-in-time scheduling, so that products can be moved from the receiving area through staging, and onto a transport vehicle without ever having to be put away.

Cross-Docking
The process of moving merchandise directly from the receiving dock to the shipping dock, eliminating the need to place the merchandise in storage.

Cross-Shipment
Material flow activity where materials are shipped to customers from a secondary shipping point rather than from a preferred shipping point.

Cross-Subsidy
In cost accounting, the inequitable assignment of costs to cost objects, which leads to over costing or under costing them relative to the amount of activities and resources actually consumed. This may result in poor management decisions that are inconsistent with the economic goals of the organization.

CRP
see Continuous Replenishment Planning

CSCMP
see Council of Supply Chain Management Professionals

CSF
see Critical Success Factor

CSI
see Container Security Initiative

CSL
see Container Stuffing List

CSR
see Customer Service Representative

CTP
see Capable to Promise

C-TPAT
see Customs-Trade Partnership against Terrorism

Cubage
Cubic volume of space being used or available for shipping or storage.

Cube
The volume of the shipment or package (the product of the length x width x depth).

Cube Utilization
The ratio determined by counting the total cubic feet of materials stored in the warehouse and expressing this number as a percentage of the total cubic dimensions of the warehouse.

Cubed out
A completely filled trailer or container but could still be below the weight capacity.

Cubic Foot
The unit of volume measurement that is equaled to 1,728 cubic inches.

Cubic Space
In warehousing, a measurement of space available or required in transportation and warehousing.

Cumulative Available-to-Promise
A calculation based on the available-to-promise (ATP) figure in the master schedule. Two methods of computing the cumulative available-to-promise are used, with and without lookahead calculation. The cumulative with lookahead ATP equals the ATP from the previous period plus the MPS of the period minus the backlog of the period minus the sum of the differences between the backlogs and MPSs of all future periods until, but not to include, the period where point production exceeds the backlogs. The cumulative without lookahead procedure equals the ATP in the previous period plus the MPS, minus the backlog in the period being considered. Also see: Available-to-Promise

Cumulative Lead Time
The total time required to source components, build and ship a product.

Cumulative Source/Make Cycle Time
The cumulative internal and external lead time to manufacture shippable product, assuming that there is no inventory on-hand, no materials or parts on order, and no prior forecasts existing with suppliers. (An element of Total Supply Chain Response Time)Calculation: The critical path along the following elements: Total Sourcing Lead Time, Manufacturing Order Release to Start Manufacturing, Total Manufacture Cycle Time (Make-to-Order, Engineer-to-Order, Configure/Package-to-Order) or Manufacture Cycle Time (Make-to-Stock), Complete Manufacture to Ship Time Note: Determined separately for Make-to-Order, Configure/Package-to-Order, Engineer-to-Order, and Make-to-Stock products

Currency Adjustment Factor
Used to adjust ocean freight due to currency fluctuations.

Current good manufacturing practices
Regulations enforced by the U.S. Food and Drug Administration for food and chemical manufacturers and packagers.

Custodian
In the sense of inventory control, the person responsible for the custody and distribution of storeroom or warehouse stock.

Customer
(1) In distribution, the Trading Partner or reseller, i.e. Wal-Mart, Safeway, or CVS. (2) In Direct-to-Consumer, the end customer or user.

Customer Acquisition or Retention
The rate by which new customers are acquired, or existing customers are retained. A key selling point to potential marquis partners. Also see: Marquis Partner

Customer Driven
The end user, or customer, motivates what is produced or how it is delivered.

Customer Facing
Those personnel whose jobs entail actual contact with the customer.

Customer Interaction Center
See Call Center

Customer Order
An order from a customer for a particular product or a number of products. It is often referred to as an actual demand to distinguish it from a forecasted demand.

Customer Profitability
The practice of placing a value on the profit generated by business done with a particular customer.

Customer Receipt of Order to Installation Complete
Average lead-time from receipt of goods at the customer to the time when installation (if applicable) is complete, including the following sub-elements: time to get product up and running, and product acceptance by customer. (An element of Order Fulfillment Lead Time) Note: Determined separately for Make-to-Order, Configure/Package-to-Order, Engineer-to-Order, and Make-to-Stock products.

Customer Relationship Management
This refers to information systems that help sales and marketing functions, as opposed to the ERP (Enterprise Resource Planning), which is for back-end integration.

Customer satisfaction
The results of delivering a good or service that meets customer requirements.

Customer Segmentation
Dividing customers into groups based on specific criteria, such as products purchased, customer geographic location, etc.

Customer service
Activities between the buyer and seller that enhance or facilitate the sale or use of the seller’s products or services.

Customer Service Level
The minimum level of support deemed acceptable by the warehouse operations management. Includes the availability of stock items when required and in the quantity required.

Customer Service Ratio
See Percent of Fill

Customer Service Representative
The individual who provides customer support via telephone in a call center environment.

Customer Signature/Authorization to Order Receipt
Average lead-time from when a customer authorizes an order to the time that that order is received and order entry can commence. (An element of Order Fulfillment Lead Time) Note: Determined separately for Make-to-Order, Configure/Package-to-Order, Engineer-to-Order, and Make-to-Stock products.

Customer/Order Fulfillment Process
A series of customers’ interactions with an organization through the order filling process, including product/service design, production and delivery, and order status reporting.

Customer-Supplier Partnership
A long-term relationship between a buyer and a supplier characterized by teamwork and mutual confidence. The supplier is considered an extension of the buyer’s organization. The partnership is based on several commitments. The buyer provides long-term contracts and uses fewer suppliers. The supplier implements quality assurance processes so that incoming inspection can be minimized. The supplier also helps the buyer reduce costs and improve product and process designs.

Customization
Creating a product from existing components into an individual order. Synonym: Build to Order.

Customs
The designated government authority that regulates the flow of goods to/from a country and collects duties levied by a country on imports and exports.

Customs Bounded Warehouse
A federal warehouse where goods remain until duty has been collected from the importer. Goods that are held under bond are also kept here.

Customs Broker
A firm that represents importers/exporters in dealings with Customs. They are responsible for obtaining and submitting all documents for clearing items through Customs, arranging inland transport, and paying all charges related to these functions.

Customs Clearance
The process of declaring and clearing cargoes by Customs through designated formalities such as presenting import license/permit, payment of import duties and other required documentations by the nature of the cargo such as FCC or FDA approval.

Customs Declaration
An oral or written statement attesting to the accuracy of description, quantity, value, etc. of merchandise offered for importation into the United States.

Customs Duties
A tax levied and government collection by custom officials of duties that is imposed by law on imports.

Customs Entries
‘Consumption Entry Form required by U.S. Customs for importing goods into the United States. The form contains information as to the origin of the cargo, a description of the merchandise and estimated duties applicable to the particular commodity. Estimated duties must be paid at the time the entry is filled. - Immediate Delivery Entry is used to expedite clearance of cargo. It allows up to ten days for the payment of estimated duty and processing of the consumption entry. In addition, it permits the delivery of the cargo prior to payment of the estimated duty and then allows for the subsequent filing of the consumption entry and duty. Also known as an ID entry. - Immediate Transportation Entry allows the cargo to be moved from the pier to an inland destination via a bonded carrier without the payment of duties or finalisation of the entry at the port of arrival. Known as an IT entry. - Transportation and Exportation Entry allows goods coming from or going to a third country, such as Canada or Mexico, to enter the United States for the purpose of transshipment. Known as a T&E entry. - Vessel Repair Entry is the law known as the ”Foreign Vessel Repair Statute”. It provides that when any repairs in a foreign country are made on a vessel documented under the laws of the United States, an ad valorem duty of 50% is imposed on the cost of repair, including labour and labour costs, when the vessel arrives in the United States. All equipment, parts or materials purchased, and repairs made outside the United States must be declared on Customs Form 226 (CF-226) and filed at the port of first arrival within 5 working days.’

Customs House Broker
A business firm that oversees the progress of international shipments through Customs, and ensures that the documentation accompanying a shipment is complete and accurate.

Customs Invoice
A document that contains a statement by the seller, the shipper, or the agent as to the value of the shipment.

Customs Value
The assessed value of the imported goods on which duties will apply.

Customs-Trade Partnership against Terrorism
A joint government/business initiative to build cooperative relationships that strengthen overall supply chain and border security. The voluntary program is designed to share information that will protect against terrorists’ compromising the supply chain.

Cut-Off Time
Last possible time when containers/cargoes may be delivered to a ship or designated point.

CWT
see Hundredweight

CY
see Container Yard

CY/CY
Full container load with cargo to be packed therein and unpacked there from at the shipper’s elected point or place and at shipper’s expense.

Cycle Count
Counting inventory by checking a particular location or set of locations and comparing the physical counts with the system-maintained inventory levels.

Cycle Count
The systematic counting of a portion of the total inventory on a periodic basis, such that all inventory lines are counted and reconciled in the course of a complete fiscal year.

Cycle Counting
An inventory accuracy audit technique where inventory is counted on a cyclic schedule rather than once a year. A cycle inventory count is usually taken on a regular, defined basis (often more frequently for high-value or fast-moving items and less frequently for low-value or slow-moving items). Most effective cycle counting systems require the counting of a certain number of items every workday with each item counted at a prescribed frequency. The key purpose of cycle counting is to identify items in error, thus triggering research, identification, and elimination of the cause of the errors.

Cycle inventory
An inventory system where counts are performed continuously, often eliminating the need for an annual overall inventory. It is usually set up so that A items are counted regularly (i.e., every month), B items are counted semiregularly (every quarter or six months), and C items are counted perhaps only once a year.

Cycle Time
The amount of time it takes to complete a business process.

Cycle Time Reduction
The process of reducing cycle time, cutting costs and improving customer service.

Cycle Time to Process Excess Product Returns for R
The total time to process goods returned as Excess by customer or distribution centers, in preparation for resale. This cycle time includes the time a Return Product Authorization (RPA) is created to the time the RPA is approved, from Product Available for Pick-up to Product Received and from Product Receipt to Product Available for use.

Cycle Time to Process Obsolete and End-of-Life Pro
The total time to process goods returned as Obsolete & End of Life to actual Disposal. This cycle time includes the time a Return Product Authorization (RPA) is created to the time the RPA is approved, from Product Available for Pick-up to Product Received and from Product Receipt to Product Disposal/Recycle.

Cycle Time to Repair or Refurbish Returns for Use
The total time to process goods returned for repair or refurbishing. This cycle time includes the time a Return Product Authorization (RPA) is created to the time the RPA is approved, from Product Available for Pick-up to Product Received, from Product Receipt to Product Repair/Refurbish begin, and from Product Repair/Refurbish begin to Product Available for use.

Cyclical Demand
A situation where demand patterns for a product run in cycles driven by seasonality or other predictable factors.

Card operating system
The software program stored in the smart card IC, which manages the basic functions of the card, such as communication with the terminal, security management and data management in the smart card file system.

Chipless RFID tag
An RFID tag that doesn’t depend on a silicon microchip. Some chipless tags use plastic or conductive polymers instead of silicon-based microchips. Other chipless tags use materials that reflect back a portion of the radio waves beamed at them. A computer takes a snapshot of the waves beamed back and uses it like a fingerprint to identify the object with the tag. Companies are experimenting with embedding RF reflecting fibers in paper to prevent unauthorized photocopying of certain documents. Chipless tags that use embedded fibers have one drawback for supply chain uses?only one tag can be read at a time.

Checksum
A code added to the contents of a block of data stored on an RFID microchip that can be checked before and after data is transmitted from the tag to the reader to determine whether the data has been corrupted or lost. The cyclic redundancy check is one form of checksum.

Concurrent working
Moving from sequential to parallel woring

Customer value
Organizations create value for their customers either by increasing the level of ‘perceived benefits’ or by reducing the customers ‘total costs of ownership’. Perceived benefits includes the tangible, product related aspects as well as the less tangible, service related elements of the the relationship.