Terms

Reading into transportation expenses involves looking at all of the factors that go into the cost of transportation, including fuel costs, vehicle maintenance, and driver salaries. By understanding all of the costs involved, companies can make more informed decisions about how to transport their products. What OTIF means? On-time, in-full (OTIF) is a metric used … Read more

What is a Bill of Exchange? A bill of exchange is a legal document that orders a person or entity to pay a certain amount of money to another person or entity. Who can accept a bill of exchange? The acceptor of a bill of exchange is the person who is obligated to pay the … Read more

The term “procurement” refers to the process of acquiring goods or services. Procurement typically involves selecting vendors, negotiating contracts, and managing inventory. In many organizations, procurement is a separate department from the rest of the supply chain. What are the 3 main documents used in the purchasing process? 1. The first document used in the … Read more

The Free Carrier (FCA) shipping terms are used to define when the seller of goods is responsible for handing over those goods to the carrier, and when the buyer is responsible for taking possession of the goods from the carrier. Under FCA terms, the seller is responsible for delivering the goods to the carrier at … Read more

A third-party distributor is an entity that is contracted by a company to distribute its products to retailers or other customers. The distributor is not an employee of the company and is not directly involved in the company’s operations. What does OBD mean in logistics? In logistics, OBD stands for “on-board delivery.” This term refers … Read more

1. Periodic Inventory: What You Should Know 2. What You Should Know About Periodic Inventory How do you record a periodic inventory system? A periodic inventory system is one in which inventory is only counted and recorded at fixed intervals. This interval is typically once a year, but can be more or less frequent depending … Read more

A bottleneck is a point in a process where the flow of materials or information is constrained. In a manufacturing setting, a bottleneck can be caused by a shortage of raw materials, a machine that is not operating at full capacity, or a blockage in the production line. In a supply chain, a bottleneck can … Read more

A bill of lading is a legal document that is used to transfer ownership of goods from one party to another. A uniform bill of lading is a standardized form that is used by many businesses in order to streamline the process of transferring goods. The form includes all of the necessary information about the … Read more

Supply Management: What It Is and How It Works What is another word for supply chain management? The most common word used to describe supply chain management is “logistics.” Other words that are often used to describe supply chain management include “supply chain optimization,” “supply chain planning,” and “supply chain coordination.” What is supply chain … Read more