Order fulfillmentOrder fulfillment (in British English: order fulfilment) is in the most general sense the complete process from point of sales inquiry to delivery of a product to the customer. Sometimes, it describes the more narrow act of distribution or the logistics function. In the broader sense, it refers to the way firms respond to customer orders. The first research towards defining order fulfillment strategies was published by Hans Wortmann, and was continued by Hal Mather in his discussion of the P:D ratio, whereby P is defined as the production lead time, i.
Performance indicatorA performance indicator or key performance indicator (KPI) is a type of performance measurement. KPIs evaluate the success of an organization or of a particular activity (such as projects, programs, products and other initiatives) in which it engages. KPIs provide a focus for strategic and operational improvement, create an analytical basis for decision making and help focus attention on what matters most. Often success is simply the repeated, periodic achievement of some levels of operational goal (e.g.
Reverse logisticsReverse logistics encompasses all operations related to the upstream movement of products and materials. It is "the process of moving goods from their typical final destination for the purpose of capturing value, or proper disposal. Remanufacturing and refurbishing activities also may be included in the definition of reverse logistics." Growing green concerns and advancement of green supply chain management concepts and practices make it all the more relevant.
Supply chain sustainabilitySupply-chain sustainability is the impact a company’s supply chain can make in promoting human rights, fair labor practices, environmental progress and anti-corruption policies. There is a growing need for integrating sustainable choices into supply-chain management. An increasing concern for sustainability is transforming how companies approach business. Whether motivated by their customers, corporate values or business opportunity, traditional priorities such as quality, efficiency and cost regularly compete for attention with concerns such as working conditions and environmental impact.
Military logisticsMilitary logistics is the discipline of planning and carrying out the movement, supply, and maintenance of military forces. In its most comprehensive sense, it is those aspects or military operations that deal with: Design, development, acquisition, storage, distribution, maintenance, evacuation, and disposition of materiel. Transport of personnel. Acquisition or construction, maintenance, operation and disposition of facilities. Acquisition or furnishing of services. Medical and health service support.
Supply chain engineeringSupply chain engineering is the engineering discipline that concerns the planning, design, and operation of supply chains. Some of its main areas include logistics, production, and pricing. It involves various areas in mathematical modelling such as operations research, machine learning, and optimization, which are usually implemented using software. Supply chain engineering draws heavily from, and overlaps with other engineering disciplines, such as industrial engineering, manufacturing engineering, systems engineering, information engineering, and software engineering.
Bullwhip effectThe bullwhip effect is a supply chain phenomenon where orders to suppliers tend to have a larger variability than sales to buyers, which results in an amplified demand variability upstream. In part, this results in increasing swings in inventory in response to shifts in consumer demand as one moves further up the supply chain. The concept first appeared in Jay Forrester's Industrial Dynamics (1961) and thus it is also known as the Forrester effect.
Demand-chain managementDemand-chain management (DCM) is the management of relationships between suppliers and customers to deliver the best value to the customer at the least cost to the demand chain as a whole. Demand-chain management is similar to supply-chain management but with special regard to the customers. Demand-chain-management software tools bridge the gap between the customer-relationship management and the supply-chain management. The organization's supply chain processes are managed to deliver best value according to the demand of the customers.
Vendor-managed inventoryVendor-managed inventory (VMI) is an inventory management practice in which a supplier of goods, usually the manufacturer, is responsible for optimizing the inventory held by a distributor. Under VMI, the retailer shares their inventory data with a vendor (sometimes called supplier) such that the vendor is the decision-maker who determines the order size, whereas in traditional inventory management, the retailer (sometimes called distributor or buyer) makes his or her own decisions regarding the order size.
Finished goodsFinished goods are goods that have completed the manufacturing process but have not yet been sold or distributed to the end user. Manufacturing Manufacturing has three classes of inventory: Raw material Work in process Finished goods A good purchased as a "raw material" goes into the manufacture of a product. A good only partially completed during the manufacturing process is called "work in process". When the good is completed as to manufacturing but not yet sold or distributed to the end-user, it is called a "finished good".
