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| EAI
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Please refer Enterprise Application Integration.
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| EAN.UCC
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European Article Numbering/Uniform Code Council. The EAN.UCC System provides identification standards to uniquely identify trade items, logistics units, locations, assets, and service relations worldwide. The identification standards define the construction of globally-unique and unambiguous numbers.
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| Early Supplier Involvement (ESI)
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The process of involving suppliers early in the product design activity and drawing on their expertise, insights, and knowledge to generate better designs in less time and ones that are easier to manufacture with high quality.
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| Earnings Before Interest and Taxes (EBIT)
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A measure of a company's earning power from ongoing operations, equal to earnings (revenues minus cost of sales, operating expenses, and taxes) before deduction of interest payments and income taxes. Also called operating profit.
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| EBIT
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Please refer Earnings Before Interest and Taxes.
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| EC
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Please refer Electronic Commerce
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| ECO
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Please refer Engineering Change Order
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| E-Commerce
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Please refer Electronic Commerce.
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| Economic order quantity
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Result of a calculation that determines the most cost effective quantity to order (purchased items) or produce (manufactured items). The formula basically finds the point at which the combination of order cost and carrying cost is the least. The standard formula is eoq = square root [2 * (annual usage) * (order cost) / (annual carrying cost/unit)]. The difficult part of implementing the formula is getting accurate values for order cost and carrying cost. See my article optimizing eoq for more info.
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| Economic Order Quantity (EOQ)
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An inventory model that determines how much to order by determining the amount that will meet customer service levels while minimizing total ordering and holding costs.
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| Economic Value Added (EVA)
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A measurement of shareholder value as a company's operating profits after tax, less an appropriate charge for the capital used in creating the profits.
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| Economy of Scale
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A phenomenon whereby larger volumes of production reduce unit cost by distributing fixed costs over a larger quantity.
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| ECR
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Please refer Efficient Consumer Response
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| ECR
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Please refer Efficient Consumer Response.
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| EDI
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Please refer Electronic Data Interchange.
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| EDI Interchange
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Communication between partners in the form of a structured set of messages and service segments starting with an interchange control header and ending with an interchange control trailer. In the context of X.400 EDI messaging, the contents of the primary body of an EDI message.
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| EDI Standards
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Criteria that define the data content and format requirements for specific business transactions (e.g., purchase orders). Using standard formats allows companies to exchange transactions with multiple trading partners more easily.
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| EDI Transmission
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A functional group of one or more EDI transactions that are sent to the same location in the same transmission, and are identified by a functional group header and trailer.
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| EDIA
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Please refer Electronic Data Interchange Association.
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| EDIFACT
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Electronic Data Interchange for Administration, commerce, and Transport. The United Nations' EDI standard.
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| Efficient Consumer Response (ECR)
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A demand-driven replenishment system designed to link all parties in the logistics channel to create a massive flow-through distribution network. Replenishment is based on consumer demand and point-of-sale information.
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| EFT
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Please refer Electronic Funds Transfer.
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| Electronic Commerce (EC)
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Also written as e-commerce. Conducting business electronically via traditional EDI technologies, or online via the Internet. In the traditional sense of selling goods, it's possible to do this electronically because of certain software programs that run the main functions of e-commerce support, such as product display, ordering, shipment, billing, and inventory management. The definition of e-commerce includes business activity that is business-to-business (B2B) and/or business-to-consumer (B2C)
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| Electronic Data Interchange (EDI)
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Intercompany, computer-to-computer transmission of business information in a standard format. For EDI purists, computer to computer means direct transmission from the originating application program to the receiving or processing application program. An EDI transmission consists only of business data, not any accompanying verbiage or free-form messages. Purists might also contend that a standard format is one that is approved by a national or international standards organization, as opposed to formats developed by industry groups or companies.
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| Electronic Data Interchange Association
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A national body that propagates and controls the use of EDI in a given country. All EDIAs are nonprofit organizations dedicated to encouraging EDI growth. The EDI in the United States was formerly TDCC and administered the development of standards in transportation and other industries.
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| Electronic Funds Transfer (EFT)
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A computerized system that processes financial transactions and information about these transactions or performs the exchange of value. Sending payment instructions across a computer network, or the company-to-company, company-to-bank, or bank-to bank electronic exchange of value.
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| Electronic Mail (E-Mail)
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The computer-to-computer exchange of messages. E-mail is usually unstructured (free-form) rather than in a structured format. X.400 has become the standard for e-mail exchange.
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| Electronic product code
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EPC is the RFID version of the UPC barcode. EPC is intended to be used for specific product identification. However, EPC goes beyond UPC by not only identifying the product as an SKU, but also providing access to additional data about the origin and history of the specific units. The EPC tag itself identifies the manufacturer, product, version, and serial number. It's the serial number that takes EPC to the next level. This is the key to data related to specific lots/batches as well as potentially tracking the specific unit's history as it moves through the supply chain. This data is stored somewhere else (the internet or other network) but a standardized architecture allows you to access the data much like you would access a web page (though this would be happening automatically behind the scenes). See my article on RFID for more info.
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| E-Mail
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Please refer Electronic Mail
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| Embargo
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A prohibition upon exports or imports, either with specific products or specific countries.
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| Empirical
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Pertaining to a statement or formula based on experience or observation rather than on deduction or theory.
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| End Item
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A product sold as a completed item or repair part; any item subject to a customer order or sales forecast.
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| End User
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The final buyer of the product who purchases the product for immediate use.
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| End-of-Life Inventory
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Inventory on hand that will satisfy future demand for products that are no longer in production at your company.
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| Engineer to Order
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A process in which the manufacturing organization must first prepare (engineer) significant product or process documentation before manufacture may begin.
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| Engineering Change
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A revision to a drawing or design released by engineering to modify or correct a part. The request for the change can be from a customer or from production, quality control, another department, or a supplier.
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| Engineering Change Order (ECO)
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A documented and approved revision to a product or process specification.
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| Enroute
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A term used for goods in transit or on the way to a destination.
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| Enterprise Application Integration (EAI)
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A computer term for the tools and techniques used in linking ERP and other enterprise systems together. Linking systems is key for e-business. Gartner says "firms implementing enterprise applications spend at least 30% on point-to-point interfaces."
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| Enterprise resource planning
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Describes software systems designed to manage most or all aspects of a manufacturing or distribution enterprise (an expanded version of MRP systems). ERP systems are usually broken down into modules such as Financials, Sales, Purchasing, Inventory Management, Manufacturing, MRP, DRP. The modules are designed to work seamlessly with the rest of the system and should provide a consistent user interface between them. These systems usually have extensive set-up options that allow you to customize their functionality to your specific business needs. Unfortunately, in the real world, ERP systems rarely are sufficient to meet all business needs and a myriad of other software packages such as Customer Relationship Management (CRM), Manufacturing Execution Systems (MES), Advanced Planning and Scheduling (APS), Warehouse Management Systems (WMS) and Transportation Management Systems (TMS) are being sold to make up for these deficiencies.
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| Enterprise Resource Planning (ERP) System
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A class of software for planning and managing enterprise-wide the resources needed to take customer orders, ship them, account for them, and replenish all needed goods according to customer orders and forecasts. Often includes electronic commerce with suppliers. Examples of ERP systems are the application suites from SAP, Oracle, PeopleSoft, and others.
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| Entry Form
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The document that must be filed with Customs to obtain the release of imported goods and to allow collection of duties and statistics. Also called a Customs Entry Form or Entry.
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| Enveloping
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an EDI management software function that groups all documents of the same type, or functioal group, and bound for the same destination into an electronic envelope. Enveloping is useful where there are multiple documents such as orders or invoices issued to a single trading partner that need to be sent as a packet.
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| Environmentally Sensitive Engineering
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Designing features in a product and its packaging that improve recycling, etc. It can include elimination of compounds that are hazardous to the environment.
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| EOQ
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Economic order quantity (see separate listing).
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| EOQ
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Please refer Economic Order Quantity.
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| EPC
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Electronic product code (see separate listing)
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| EPC or ePC
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Electronic Product Code. An electronically coded tag that is intended as an improvement to the UPC bar code system. The EPC is a 96-bit tag which contains a number called the global Trade Identification Number (GTIN). Unlike a UPC number, which only provides information specific to a group of products, the GTIN gives each product its own specific identifying number, giving greater accuracy in tracking.
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| Equipment
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The rolling stock carriers use to facilitate the transportation services that they provide, including containers, trucks, chassis, vessels, and airplanes, among others.
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| Equipment I.D.
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An identifier assigned by the carrier to a piece of equipment.
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| Equipment Positioning
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The process of placing equipment at a selected location.
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| Ergonomic
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The science of creating workspaces and products which are human friendly to use.
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| ERP
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Enterprise resource planning (see separate listing)
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| ERP
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Please refer Enterprise Resource Planning System.
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| ERS
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Please refer Evaluated Receipts Settlement.
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| ESFR
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Early suppression fast response. Sprinkler system technology that executes faster and with a substantially greater volume of water. ESFR sprinklers may eliminate the need for in-rack sprinkler systems in many warehouses, thus reducing the cost of installation and, more importantly, the risk of water damage caused by damage to in-rack sprinklers. Retrofitting ESFR into older warehouses is not always feasible due to limited water pressure in old systems.
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| ESI
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Please refer Early Supplier Involvement.
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| ETA
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The Estimated Time of Arrival.
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| ETD
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The Estimated Time of Departure.
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| Ethical Standards
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A set of guidelines for proper conduct by business professionals.
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| EVA
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Please refer Economic Value Added.
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| Evaluated Receipts Settlement (ERS)
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A process for authorizing payment for goods based on actual receipts with purchase order data when price has already been negotiated. The basic premise behind ERS is that all of the information in an invoice has already been transmitted in the shipping documentation. Therefore, the invoice is eliminated and the shipping documentation is used to pay the vendor.
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| Event management
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Software functionality that triggers specific actions based upon the occurrence of a specific event or combination of events. This is another one of those terms used primarily by software vendors and consultants to push "new" technology. In reality, business software has been providing event-management functionality for years. If inventory dropping below a predetermined level (reorder point) triggers a message to a planner (or even a listing on a reorder report), this is essentially event management.
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| Ex Works
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The price that the seller quotes applies only at the point of origin. The buyer takes possession of the shipment at the point of origin and bears all costs and risks associated with transporting the goods to the destination.
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| Example
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a grocery store chain buys Oreo cookies from Nabisco. For accounting purposes, the grocery store chain identifies Nabisco as Vendor #76091. One company can have multiple vendor codes. Example Welch's Foods sells many different products - frozen grape juice concentrate, chilled grape juice, bottled grape juice, and grape jelly. Because each of these items is a different type of product (frozen food, chilled food, beverages, dry food), they may also have a different buyer at the grocery store chain, requiring a different vendor code for each product line.
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| Exception Rate
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A deviation from the class rate; changes (exceptions) made to the classification.
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| Excess Inventory
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Inventory quantities above a specific need. Some businesses may designate excess inventory as inventory beyond a certain time period of demand. For example, any inventory greater than 60 day's demand. Others may designate it as inventory beyond their current safety stock plus lot size (order quantity). The second method assumes you have formulas for adjusting safety stock and lot sizes as demand changes. This method basically calculates how much more inventory you have than you would have if you started with nothing and stocked based on current demand and ordering practices. You will generally use tolerances with the 2nd method. See also obsolete inventory
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| Exclusive Patronage Agreements
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A shipper agrees to use only a conference's member liner firms in return for a 10 to 15 percent rate reduction.
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| Exclusive Use
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Vehicles that a carrier assigns to a specific shipper for its exclusive use.
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| Exempt Carrier
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A for-hire carrier that is free from economic regulation. Trucks hauling certain commodities are exempt from Interstate Commerce Commission economic regulation. By far, the largest portion of exempt carriers transports agricultural commodities or seafood.
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| Expert System
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A computer program that mimics a human expert.
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| Explosion-proof lift trucks
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Lift trucks designed to work in hazardous environments where highly combustible materials are present. Vehicles are designed to avoid sparks and components reaching combustible temperatures. Special electrical systems and materials are used to achieve this.
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| Export
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To send goods and services to another country.
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| Export Broker
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An enterprise that brings together buyer and seller for a fee, then eventually withdraws from the transaction.
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| Export Compliance
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Complying with rules for exporting products, including packaging, labeling, and documentation.
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| Export Declaration
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A document required by the U.S. Treasury department and completed by the exporter to show the value, weight, consignee, destination, etc., pertinent to the export shipment. The document serves two purposes to gather trade statistics and to provide a control document if the goods require a valid export license.
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| Export License
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A document secured from a government authorizing an exporter to export a specific quantity of a controlled commodity to a certain country. An export license is often required if a government has placed embargoes or other restrictions upon exports.
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| Export Management Company
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A private firm that serves as the export department for several manufacturers, soliciting and transacting export business on behalf of its clients in return for a commission, salary, or a retainer plus commission.
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| Export Sales Contract
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The initial document in any international transaction; it details the specifics of the sales agreement between the buyer and seller.
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| Export Trading Company
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A firm that buys domestic products for sale overseas. A trading company takes title to the goods; an export-management company usually does not.
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| Exporter Identification Number (EIN)
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A number required for the exporter on the Shipper's Export Declaration. A corporation may use their Federal Employer Identification Number as issued by the IRS; individuals can use their Social Security Numbers.
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| Extended Enterprise
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The notion that supply chain partners form a larger entity which works together as though it were a single unit.
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| Extensible Markup Language (XML)
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A computer term for a language that facilitates direct communication of data among computers on the Internet. Unlike the older hypertext markup language (HTML) which provides data tags that give instructions to a web browser on how to display information, XML tags give instructions to a browser or to application software which help to define specifics about the category of information.
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| External Factory
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A situation where suppliers are viewed as an extension of the firm's manufacturing capabilities and capacities. The same practices and concerns that are commonly applied to the management of the firm's manufacturing system should also be applied to the management of the external factory.
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| Extranet
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A computer term describing a private network (or a secured link on the public Internet) that links separate organizations and uses the same software and protocols as the Internet. Used for improving supply chain management. For example, extranets are used to provide access to a supply chain partner's internal inventory data which is not available to unrelated parties.
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| Extrusion
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Generally describes an item made of metal or plastic that is produced by forcing the raw material through a die (extruding). The result being a long item with a uniform shape throughout the length. Extrusions will often (though not always) require cutting and other machining processes to turn them into a finished item.
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