Supply Chain Acronyms Logistics Acronyms Supply Chain Abbrevations Logistics Abbrevations

Supply Chain Acronyms

Supply Chain Acronyms

There are so many acronyms that are used in the Supply Chain and Logistics business. It might be becasue we are always trying to save some time to become more efficient in everything we do! šŸ™‚

Supply Chain Acronyms Logistics Acronyms Supply Chain Abbrevations Logistics Abbrevations

Here I will try to give some of the most commonly used supply chain acronyms, as well as logistics acronyms.

You can add in the comment section the ones you use as well.

Also every company has its own acronym words

which areĀ usually about their processes or theĀ supply chain sofware systems they have been using. In my first meeting in my current job, I was barely able to understand what they have been talking about! LOL! šŸ™‚ By the time you get used to the slang, don’t worry. But still you can practice below for starters.

3PL Third-Party (3rd) Logistics Provider
4PL Fourth Party Logistics Provider
ABC Activity Based Costing, also it can be used for ABC classification of stocks in a warehouse (A for most commonly used inventory, C for least frequently used ones and B for the rest)
ABF Account Based Forecasting, also known as Customer Planning or Customer Specific Forecasting (CSF), refers to a bottom up demand forecasting process which starts with customer retail forecast, then arrives at a customer shipment forecast to be aggregated into a supply chain forecast.
ACV All Commodity Volume
API Application Program Interface
APO Advanced Planner and Optimizer, the planning software from SAP AG.
ATO Assembled to Order
ATP Available to Promise
B2B Business-to-Business (This is about your sales strategy)
B2C Business-to-Consumer (This is also about your sales strategy)
BI Business Intelligence
BOL Bill of Lading
BOM Bill of Materials (All components that are used to form a product, with qtys or amounts used. This can have multiple levels like a tree diagram)
BPM Business Process Management
BSC Balanced Scorecard (This is where you have your KPIs weighted to show yur overall performance. The most important KPIs have higher impact on your score)
CBP Consensus Business Planning
CBU Complete Business Unit (This means a product as a whole, ready to be sold to final customer. All assembly is completed with all parts included. Also see SKD and CKD
CFPIM Certified Fellow in Production and Inventory Management
CIF Cost, Insurance and Freight (Logistics term. If you want more details about Logistics Incoterms you can visit this blog)
CIRM Certififed in Integrated Resources Management – CIRM is a comprehensive educational program designed to help you understand the power of collaboration among organizational resources such as product development, marketing/sales, human resources, finance, and operations.
CKD Complete Knocked Down (This meansĀ a product which is not assembled and notĀ ready to be sold to final customer. But all parts included in the shipment. This needs to beĀ processed in an assembly line in a facility before you have the final product.Ā Also see SKD and CBU
COGS Cost of Goods Sold (Carrying value of goods sold during a particular period)
CPFR Collaborative, Planning, Forecasting and Replenishment is a concept popularized and institutionalized by the VICS organization to enable manufacturers and retailers to better collaborate on forecasting and promotional planning to achieve supply chain efficiencies.
CPG Consumer Packaged Goods, refers to the manufacturers and supplies in the Packaged Goods industry, a very specific reference to companies that manufacture or distribute Consumer Packaged Goods to the retail environment.
CPIM Certified in Production and Inventory Management, a certification offered by the APICS, the Association for Operations Management.
CRM Customer Relationship Management (Call centers are included mostly)
CRM Customer Relationship Management; the process and discipline to analyze the trade funds, promotional planning and execution and evaluating the effectiveness of promotions. Oracle CRM, Siebel, and SAP CRM are the dominant players in this space. Siebel and Demantra have been acquired by Oracle.
CRP Continuous Replenishment Program, another term to denote VMI or Vendor Managed Inventories, where the supplier or manufacturer monitors the nventory at the customer warehouse on a continuous basis and writes the orders on behalf of the customer to ensure warehouses are adequately stocked.
CRP Capacity Requirements Planning
CSCP Certified Supply Chain Professional
CTO Configured to Order
DC Distribution Center (A huge warehouse!)
DDSN Demand Driven Supply Networks
DFRL Design for Reverse Logistics
DimWt Dimensional Weight
DP Demand Planning
DRP Distribution Requirements Planning
DTC Direct To Channel
EDI Electronic Data Interchange
EFTA European Free Trade Association
EOQ Economic Order Quantity
ERP Enterprise Resource Planning
ETA Estimated Time of Arrival
ETO Engineered to Order
FAN Flu Alert Network
FEFO First Expire First Out
FG Finished Goods
FIFO First In First Out (If you don’t do this your stock can get old and if it is FMCG product you can end up with many expired products at the end. Also see LIFO)
FMCG Fast Moving Consumer Goods
FOB Free on Board
FSI Free Standing Insert, AKA “Coupon”
GDP Gross Domestic Product
GPS Global Positioning System
GTIM Global Tariffs and International Mapping
GTM Global Trade Management
IATA International Air Transport Association
IBM Integrated Business Management
IBP Integrated Business Planning
ICS Import Control System
IO Inventory Optimization (See someĀ advice how itĀ can beĀ doneĀ here)
ISO International Standards Organization
ITA International Trade Administration
ITC International Trade Commission
JIT Just in Time (This is almost equal to Toyota as a word! They are the master of JIT!)
JOC Journal of Commerce
KPI Key Performance Indicator
LCL Less-than-Container Load
LIDD Logistics Intelligence Distribution Design
LIFO Last In/First Out (Usually applied due to financial reasons when the cost of the products in stock is increasing companies may prefer to use LIFO. You can see a more detailed explanation when to use LIFO on this page here)
LSP Logistics Service Provider
LTL Less-than Truckload
MAD Mean Absolute Deviation, similar to MAPE before it becomes a percentage error. Academics respect this measure, largely due to confusion and mis
MAPE Mean Absolute Percent Error a cross-sectional measure to calculate the demand forecast error across products, customers, divisions etc.
MRP Materials Requirements Planning / Manufacturing Resource Planning
MRP Material Requirement Planning
MTD Month to date (ThisĀ indicates the time periodĀ starting from the 1st dayĀ of the current month up to today)
MTG Month to Go
MTO Made to Order, a type of production and inventory strategy that starts the manufacturing process only on receipt of the customer order. The manufacturer has the luxury of making the customer order, (and perhaps pay) and wait. Dell is a classic example of a MTO business model.
MTS Made to Stock, a production and replenishment model that keeps inventory of products, anticipating customer orders.
OEM Original Equipment Manufacturer
OFS Oil Field Services
OLS Ordinary Least Squares, the most basic methodology for model fitting by choosing the model that minimizes the residual error.
OMS Order Management System
OTC Over the Counter
PMAD Percent Mean Absolut
PO Purchase Order (Nothing is moved without a Purchase Order! This is important)
POD Proof of Delivery
POE Port of Entry
POM Purchase Order Management
POP Point of Purchase
POS Point of Sale
PRECISE Preloading consignment information for secure entry
QA Quality Assurance
QC Quality Control
QM Quality Management
QMS Quality Management System
RFID Radio Frequency Identification
RMSE Root Mean Squared Error, a measure of model diagnostic and with more application in inventory management to set parameters for safety stock calculations.
ROI Return on Investment
S&OP Sales and Operations Planning
SCM Supply Chain Management
SCOR Supply Chain Operations Reference Model
SCP Supply Chain Planning
SIOP Sales, Inventory and Operations Planning
SKD Semi Knocked Down
SKU Stock Keeping Unit (The codes in your local system for indicating the products/materials in your stock. You use them every day! You justĀ remember some of them by heart without any effort because you use them all the time!)
SMI Supplier Managed Inventory, very similar to VMI except here the manufacturer lets their inventories be managed by a supplier of key components and input products.
SNP Supply Network Planning, One of APO modules of SAP AG.
SRM Supplier Relationship Management
TL Truckload
TM Transportation Management
TMS Transportaton Management System
TQM Total Quality Management
TQM Total Quality Management
VAT Value-Added Tax
VMI Vendor Managed Inventories, where the supplier or manufacturer monitors the inventory at the customer warehouse on a continuous basis and writes the orders on behalf of the customer to ensure warehouses are adequately stocked.
WAPE Weighted Absolute Percent Error – The same as weighted MAPE
WCO World Customs Organization
WIP Work in Process
WM Warehouse Management (See related article in the blog, click)
WMS Warehouse Management System
WTO World Trade Organization
YTD Year to Date

References:

http://demandplanning.net/acronyms.html

Logistics with Lenny

http://www.allacronyms.com/supply_chain/topic

http://www.erp.asia/scm-acronyms.asp

http://www.supplychainmetric.com/acronyms.htm

https://www.descartes.com/knowledge-center/acronyms-logistics-supply-chain-management

 

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