Logistics glossary

Here you find current terms and concepts in Supply Chain.

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Value Stream Mapping (VSM) A simple diagram of every step involved in the material and information flows needed to bring a product from order to delivery. The first step is to draw a visual representation of every step in a process, including key data, such as the customer demand rate, quality, and machine reliability. Next, draw an improved future-state map showing how the product or service could flow if the steps that add no value were eliminated. Finally, create and implement a plan for achieving the future state.
Variable cost A cost that fluctuates with the volume or activity level of business.
Vendor The manufacturer or distributor of an item or product line.
Vendor-Managed Inventory (VMI) The practice of retailers making suppliers responsible for determining order size and timing, usually based on receipt of retail POS and inventory data. Its goal is to increase retail inventory turns and reduce stock outs.
Visibility The ability to access or view pertinent data or information as it relates to logistics and the supply chain.
Warehouse Storage place for products. Principal warehouse activities include receipt of product, storage, shipment, and order picking.
Warehouse Management Systems (WMS) The systems used in effectively managing warehouse business processes and direct warehouse activities, including receiving, putaway, picking, shipping, and inventory cycle counts. Also includes support of radio-frequency communications, allowing real-time data transfer between the system and warehouse personnel. They also maximize space and minimize material handling by automating putaway processes.
Waste (Japanese Muda) Any activity that consumes resources but creates no value for the customer.
Waybill Document containing description of goods that are part of common carrier freight shipment. Show origin, destination, consignee/consignor, and amount charged. Copies travel with goods and are retained by originating/delivering agents. Used by carrier for internal record and control, especially during transit.
What-if analysis A process of evaluating alternate strategies, by whichthe consequences of changes to forecasts, manufacturing plans, stock levels, etc. are predicted. A methodis: simulation by using the formal system to determinethe potential effects of implementing alternative actions.
Wholesaler An intermediary between manufacturers and retailers in various activities such as promotion, warehousing and the arranging of transport and/or distribution.
Wilson lot-size formula A formula for calculating the optimum order quantity.
Work-In-Process (WIP) Parts and subassemblies in the process of becoming completed finished goods.