D
Dangerous
Goods: Articles or substances capable of
posing a significant risk to health, safety, or property, and that ordinarily
require special attention when transported. See also Hazardous Goods.
Dashboard: A performance measurement tool used to capture a summary of
the key performance indicators/metrics of a company. Metrics
dashboards/scorecards should be easy to read and usually have red, yellow,
green indicators to flag when the company is not meeting its metrics targets.
Ideally, a dashboard/scoreboard should be cross functional in nature and
include both financial and non-financial measures. In addition, scorecards
should be reviewed regularly - at least on a monthly basis, and weekly in key
functions such as manufacturing and distribution where activities are critical
to the success of a company. The dashboards/scorecards philosophy can also be
applied to external supply chain partners like suppliers to ensure that their
objectives and practices align. Synonym: Scorecard.
Data
Dictionary: Lists the data elements for which
standards exist. The Joint Electronic Document Interchange (JEDI) committee
developed a data dictionary that is employed by many EDI users.
Data Interchange Standards Association (DISA): The secretariat which provides clerical and administrative
support to the ASC X12 Committee.
Data
Mining: The process of studying data to
search for previously unknown relationships. This knowledge is then applied to
achieving specific business goals.
Data
Warehouse: A repository of data that has been
specially prepared to support decision-making applications. Synonym:
Decision-Support Data.
Database: Data stored in computer-readable form, usually indexed or
sorted in a logical order by which users can find a particular item of data
they need.
Date
Code: A label on products with the date
of production. In food industries, it's often an integral part of the lot
number.
Days
of Supply: Measure of quantity of inventory on
hand in relation to number of days for which usage will be covered. For
example, if a component is consumed in manufacturing at the rate of 100 per day
and there are 1,585 units available on hand, this represents 15.85 days'
supply.
Dead on Arrival (DOA): A term used to describe products which are not functional
when delivered. Synonym: Defective.
Deadweight Tons (DWT): The cargo carrying capacity of a vesel, including fuel oil,
stores and provisions.
Decentralized Authority:
A situation in which a company management gives decision-making authority to
managers at many organizational levels.
Decision Support System (DSS): Software that speeds access and simplifies data analysis,
queries, etc.
Declaration of Dangerous Goods: To comply with the U.S. regulations, exporters are required
to provide special notices to inland and ocean transport companies when goods
are hazardous.
Declared Value for Carriage: The value of the goods, declared by the shipper on a bill
of lading, for the purpose of determining a freight rate or the limit of the
carrier's liability.
Deconsolidator: An enterprise that provides services to un-group shipments,
orders, goods, etc., to facilitate distribution.
Dedicated Contract Carriage: A third party service that dedicates equipment (vehicles)
and drivers to a single customer for its exclusive use on a contractual basis.
Defective goods inventory (DGI): Those items that have been returned, have been delivered
damaged and have a freight claim outstanding, or have been damaged in some way
during warehouse handling.
Delivery Appointment:
The time agreed upon between two enterprises for goods or transportation
equipment to arrive at a selected location.
Delivery-Duty-Paid: Supplier/manufacturer arrangement in which suppliers are
responsible for the transport of the goods they've produced, which are being
sent to a manufacturer. This responsibility includes tasks such as ensuring
that products get through Customs.
Delivery Instructions:
A document issued to a carrier to pick up goods at a location anddeliver them
to another location. See also Delivery Order
Delivery
Order: A document issued by the customs
broker to the ocean carrier as authority to release the cargo to the
appropriate party.
Delivery Performance to Commit Date: The percentage of orders that are fulfilled on o before the
internal commit date, used as a measure of internal scheduling systems
effectiveness. Delivery measurements are based on the date a complete order is
shipped or the ship-to date of a complete order. A complete order has all items
on the order delivered in the quantities requested. An order must be complete
to be considered fulfilled. Multiple-line items on a single order with
different planned delivery dates constitute multiple orders, and
multiple-planned delivery dates on a single line item also constitute multiple
orders. Calculation: [Total number of orders delivered in full and on
time to the scheduled commit date]/[Total number of orders delivered]
Delivery Performance to Request Date: The percentage of orders that are fulfilled on or before
the customer's requested date used as a measure of responsiveness to market
demand. Delivery measurements are based on the date a complete order is shipped
or the ship-to date of a complete order. A complete order must be complete to
be considered fulfilled. Multiple line items on a single order with different
planned delivery dates constitute multiple orders, and multiple planned
delivery dates on a single line item also constitute multiple orders. Calculation:
[Total number of orders delivered in full and on time to the customer's request
date]/[Total number of orders delivered]
Demand Chain Management:
The same as supply chain management, but with an emphasis on consumer pull
versus supplier push.
Demand Planning Systems:
The systems that assist in the process of identifying, aggregating, and
prioritizing all sources of demand for the integrated supply chain of a product
of service at the appropriate level, horizon, and interval.
Demand
Pull: The triggering of material movement
to a work center only when that work center is ready to begin the next job. In
effect, it eliminates the queue from in from of a work center, but it can cause
a queue at the end of a previous work center.
Demand Side Analysis: Techniques
such as market research, surveys, focus groups, and performance/cost modeling
used to identify emerging technologies.
Demand
Signal: A signal from a consumer, customer
or using operation that triggers the issue of product or raw material.
Demand Supply Balancing:
The process of identifying and measuring the gaps and imbalances between demand
and resources in order to determine how to best resolve the variances through
marketing, pricing, packaging, warehousing, outsource plans, or some other
action that will optimize service, flexibility, costs, assets, (or other supply
chain inconsistencies) in an iterative and collaborative environment.
Deming
Circle: The concept of a continuously
rotating wheel of plan-to-do-check-action (PDCA) used to show the need for
interaction among market research, design, production, and sales to improve
quality. Also see: Plan-Do-Check-Action.
Demographic Segmentation:
In marketing, dividing potential markets by characteristics of potential
customers, such as age, sex, income, and education.
Demurrage: The carrier charges and fees applied when rail freight cars
and ships are retained beyond a specified loading or unloading time. Also
see: Detention, Express.
Denied Party Listing (DPL): A list of organizations that is unauthorized to submit a
bid for an activity or to receive a specific product. For example, some
countries have bans on certain products like weapons or sensitive technology.
Density: A physical characteristic measuring a commodity's mass per
unit volume or pounds per cubic foot; an important factor in ratemaking, since
density affects the utilization of a carrier's vehicle.
Deregulation: Revisions or complete elimination of economic regulations
controlling transportation. The Motor Carrier Act of 1980 and the Staggers Act
of 1980 revised the economic controls over motor carriers and railroads, and
the Airline Deregulation Act of 1978 eliminated economic controls over air
carriers.
Derived
demand: The demand for a product's
transportation is derived from the product's demand at some location.
Design for Manufacture/Assembly (DFMA): A product design methodology that provides a quantitative
evaluation of product designs.
Design of Experiments (DOE): A branch of applied statistics dealing with planning,
conducting, analyzing, and interpreting controlled tests to evaluate the
factors that control the value of a parameter or group of parameters.
Detention: The carrier charges and fees applied when rail freight cars
and ships are retained beyond a specified loading or unloading time. Also
see: Demurrage, Express.
Direct
Channel: This is when your own sales force
sells to the customer. Your company may ship to the customer, or a third party
may handle shipment, but in either case, your company owns the sales contract
and retains rights to the receivable from the customer. Your end customer may
be a retail outlet. The movement to the customer may be direct from the
factory, or the product may move through a distribution network owned by your
company. Order information in this channel may be transmitted by electronic
means.
Direct
Cost: A cost that can be directly traced
to a cost object since a direct or repeatable cause-and-effect relationship
exists. A direct cost uses a direct assignment or cost causal relationship to
transfer costs. Also see: Indirect Cost, Tracing
Direct Product Profitability (DPP): Calculation of the net profit contribution attributable to
a specific product or product line.
Direct Production Material: Material that is used in the manufacturing/content of a
product. (Example: purchased parts, solder, SMT glues, adhesives, mechanical
parts, bill-of-materials parts, etc.)
Direct Retail Locations:
A retail location that purchases products directly from your organization or
responding entity.
Direct Store Delivery (DSD): Process of shipping direct from a manufacturer's plant or
distribution center to the customer's retail store, thus bypassing the
customer's distribution center. Also called Direct-to-Store Delivery.
Disaster Recovery Planning: Contingency planning specifically related to recovering
hardware and software (e.g., data centers, application software, operations,
personnel, telecommunications) in information system outages.
Discharge
Port: The name of the port where the
cargo is unloaded from the export vessel. This is the port reported to the U.S.
Census on the Shipper's Export Declaration, Schedule K, which is used by U.S.
companies when exporting. This can also be considered the first discharge port.
Discrete Manufacturing:
Discrete manufacturing processes create products by assembling unconnected
distinct parts as in the production of distinct items such as automobiles,
appliances, or computers.
Disintermediation: When the traditional sales channels are disassembled and
the middleman gets cut out of the deal. Such as where the manufacturer ships
direct to a retailer, bypassing the distributor.
Dispatching: The carrier activities involved with controlling equipment;
involves arranging for fuel, drivers, crews, equipment, and terminal space.
Distributed Inventory:
Inventory that is geographically dispersed. For example, where a company
maintains inventory in multiple distribution centers to provide a higher level
of customer service.
Distribution: Outbound logistics, from the end of the production line to
the end user. The activities associated with the movement of material, usually
finished goods or service parts, from the manufacturer to the customer. These
activities encompass the functions of transportation, warehousing, inventory
control, material handling, order administration, site and location analysis,
industrial packaging, data processing, and the communications network necessary
for effective management. It includes all activities related to physical distribution,
as well as the return of goods to the manufacturer. In many cases, this
movement is made through one or more levels of fieldwarehouses. Synonym:
Physical Distribution. The systematic division of a whole into discrete
parts having distinctive characteristics.
Distribution Center (DC):
The warehouse facility which holds inventory from manufacturing pending
distribution to the appropriate stores.
Distribution Channel:
One or more companies or individuals who participate in the flow of goods and
services from the manufacturer to the final user or consumer.
Distribution Channel Management: The organizational and pipeline strategy for getting
products to customers. Direct channels involve company sales forces,
facilities, and/or direct shipments to customers; indirect channels involve the
use of wholesalers, distributors, and/or other parties to supply the products
to customers. Many companies use both strategies, depending on markets and
effectiveness.
Distribution Planning:
The planning activities associated with transportation, warehousing, inventory
levels, materials handling, order administration, site and location planning,
industrial packaging, data processing, and communications networks to support
distribution.
Distribution Requirements Planning (DRP): A system of determining demands for inventory at
distribution centers and consolidating demand information in reverse as input
to the production and materials system.
Distribution Resource Planning (DRP II): The extension of distribution requirements planning into
the planning of the key resources contained in a distribution system: warehouse
space, workforce, money, trucks, freight cars, etc.
Distributor: A business that does not manufacture its own products, but
purchases and resells these products. Such a business usually maintains a
finished goods inventory. Synonym: Wholesaler.
Diversion: The process of changing the destination and/or the
consignee while the shipment is enroute.
Dock
Receipt: A document used to accept materials
or equipment at an ocean pier or accepted location. Provides the ocean carrier
with verification of receipt and the delivering carrier with proof of delivery.
Document: In EDI, a form, such as an invoice or purchase order, that
trading partners have agreed to exchange and that the EDI software handles
within its compliance-checking logic.
Documentation: The papers attached or pertaining to goods requiring
transportation and/or transfer of ownership.
DOE: See Design of Experiments.
Domestic Trunk Line Carrier: A classification for air carriers that operate between
major population centers. These carriers are now classified as major carriers.
Doubles: Double trucks are two 28-foot trailers that are pulled by
one tractor. Doubles also are known as "double bottoms."
Download: To merge temporary files containing a day's or week's worth
of information with the main data base in order to update it.
Downstream: One or more companies or individuals who participate in the
flow of goods and services moving from the manufacturer to the final user or
consumer.
Drayage: The service offered by a motor carrier for pick-up and delivery
of ocean containers or rail containers. Drayage agents usually handle full-load
containers for ocean and rail carriers.
Drayage
Firms: Motor carriers that provide local
pickup and delivery of trailers and containers (on chassis)
Driving Time Regulations:
U.S. Department of Transportation rules that limit the maximum time a driver
may drive in interstate commerce; the rules prescribe both daily and weekly
maximums.
Drop: A situation in which an equipment operator deposits a
trailer or boxcar at a facility at which it is to be loaded or unloaded.
Drop
Ship: To take the title of the products
but not actually handle, stock, or deliver it, e.g., to have one supplier ship
directly to another or to have a supplier ship directly to the buyer's
customer.
Drum-Buffer-Rope (DBR): In the theory of constraints, the generalized process used
to manage resources to maximize throughput. The drum is the rate or pace of
production set by the system's constraint. The buffers establish the protection
against uncertainty so that the system can maximize throughput. The rope is a
communication process from the constraint to the gating operation that checks
or limits material released into the system to support the constraint.
Dual
rate system: An international water carrier
pricing system in which a shipper signing an exclusive use agreement with the
conference pays a rate 10 to 15 percent lower than non-signing shippers do for
an identical shipment.
Dumping: When a product is sold below cost in a foreign market
and/or when a product is sold at a lower price in the foreign market than in a
domestic market, with the intention of driving out competition in the foreign
market.
Duty
Drawback: A refund of duty paid on imported
merchandise when it is exported later, whether in the same or a different form.
Duty Free Zone (DFZ): An
area where goods or cargo can be stored without paying import customs duties
while awaiting manufacturing or future transport.
Dynamic Process Control (DPC): Continuous monitoring of process performance and adjustment
of control parameters to optimize process output.
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