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Tender
The document which describes a business transaction
to be performed
Terminal delivery allowance
A reduced rate offered in return for the shipper of
consignee tendering or picking up the freight at the
carrier’s terminal
Third-Party Logistics (3PL)
Outsourcing all or much of a company’s logistics
operations to a specialized company
Third Party Logistics Provider
A firm which provides multiple logistics services
for use by customers. Preferably, these services are
integrated, or "bundled" together by the provider. These
firms facilitate the movement of parts and materials
from suppliers to manufacturers, and finished products
from manufacturers to distributors and retailers. Among
the services which they provide are transportation,
warehousing, cross-docking, inventory management,
packaging, and freight forwarding
Safety Stock is the inventory a company holds
above normal needs as a buffer against delays in
receipt of supply or changes in customer demand.
Throughput
A measure of warehousing output volume (weight,
number of units). Also, the total amount of units
received plus the total amount of units shipped, divided
by two
Total Average Inventory
Average normal use stock, plus average lead stock,
plus safety stock
Total Cost of Ownership (TCO)
Total cost of a computer asset throughout its
lifecycle, from acquisition to disposal. TCO is the
combined hard and soft costs of owning networked
information assets. 'Hard' costs include items such as
the purchase price of the asset, implementation fees,
upgrades, maintenance contracts, support contracts, and
disposal costs, license fees that may or may not be
upfront or charged annually. These costs are considered
'hard costs' because they are tangible and easily
accounted for
Total Sourcing Lead Time
(95% of Raw Material Dollar Value): Cumulative lead time
(total average combined inside-plant planning, supplier
lead time [external or internal], receiving, handling,
etc., from demand identification at the factory until
the materials are available in the production facility)
required to source 95% of the dollar value (per unit) of
raw materials from internal and external suppliers
Total Supply-Chain Management Cost (5 elements)
Total cost to manage order processing, acquire
materials, manage inventory, and manage supply-chain
finance, planning, and IT costs, as represented as a
percent of revenue. Accurate assignment of IT-related
cost is challenging. It can be done using
Activity-Based-Costing methods, or based on more
traditional approaches.
Allocation based on user counts, transaction counts, or
departmental headcounts are reasonable approaches. The
emphasis should be on capturing all costs, whether
incurred in the entity completing the survey or incurred
in a supporting organization on behalf of the entity.
Reasonable estimates founded in data were accepted as a
means to assess overall performance. All estimates
reflected fully burdened actual inclusive of salary,
benefits, space and facilities, and general and
administrative allocations.
Calculation:
[Order Management Costs + Material Acquisition Costs +
Inventory Carrying Costs + Supply-Chain-Related Finance
and
Planning Costs + Total Supply-Chain-Related IT Costs] /
[Total Product Revenue] (Please see individual component
categories for component detail and calculations)
Total Supply Chain Response Time
The time it takes to rebalance the entire supply
chain after determining a change in market demand. Also,
a measure of a supply chain’s ability to change rapidly
in response to marketplace changes
Calculation:
[Forecast Cycle Time] + [Re-plan Cycle Time] +
[Intra-Manufacturing Re-plan Cycle Time] + [Cumulative
Source/Make
Cycle Time] + [Order Fulfillment Lead Time]
Trailer on a Flatcar (TOFC) A specialized form of
containerization in which motor and rail transport
coordinate. Synonym: Piggyback.
Transit Inventory
Inventory in transit between manufacturing and
stocking locations, or between warehouses in a
distributed warehousing model. Also see: In-transit
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