E
EAN.UCC: 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. For additional reference, please see http://www.uc-council.org/ean_ucc_systems/stnds_and_tech/bus_apps.html
Early Supplier Involvement (ESI): 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.
Earnings Before Interest and Taxes (EBIT): 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.
Economic Order Quantity (EOQ): 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.
Economic Value Added (EVA): 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.
Economy
of Scale: A phenomenon whereby larger volumes
of production reduce unit cost by distributing fixed costs over a larger
quantity.
EDI
Interchange: 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.
EDIFACT: Electronic Data Interchange for Administration, commerce,
and Transport. The United Nations' EDI standard.
EDI
Standards: 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. Also see: American National Standards Institute.
EDI
Transmission: 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.
Efficient Consumer Response (ECR): 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.
Electronic Commerce (EC):
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)
Electronic Data Interchange (EDI): 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.
Electronic Data Interchange Association: 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.
Electronic Funds Transfer (EFT): 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.
Electronic Mail (E-Mail):
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.
Embargo: A prohibition upon exports or imports, either with specific
products or specific countries.
Empirical: Pertaining to a statement or formula based on experience or
observation rather than on deduction or theory.
End
Item: A product sold as a completed item
or repair part; any item subject to a customer order or sales forecast. Synonym:
Finished Goods Inventory.
End-of-Life Inventory:
Inventory on hand that will satisfy future demand for products that are no
longer in production at your company.
Engineering
Change: 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. Synonym: Engineering Change Order
Engineering Change Order (ECO): A documented and approved revision to a product or process
specification.
Engineer
to Order: A process in which the
manufacturing organization must first prepare (engineer) significant product or
process documentation before manufacture may begin.
Enterprise Application Integration (EAI): 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."
Enterprise Resource Planning (ERP) System: 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.
Entry
Form: 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.
Enveloping: 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.
Environmentally Sensitive Engineering: Designing features in a product and its packaging that
improve recycling, etc. It can include elimination of compounds that are
hazardous to the environment.
EPC or ePC: 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.
Equipment: The rolling stock carriers use to facilitate the
transportation services that they provide, including containers, trucks,
chassis, vessels, and airplanes, among others.
Equipment
I.D.: An identifier assigned by the
carrier to a piece of equipment. See also Container ID.
Ergonomic: The science of creating workspaces and products which are
human friendly to use.
Evaluated Receipts Settlement (ERS): 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.
Exclusive Patronage Agreements: A shipper agrees to use only a conference's member liner
firms in return for a 10 to 15 percent rate reduction.
Exempt
Carrier: 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.
Expediting: (1) Moving shipments through regular channels at an
accelerated rate. (2) To take extraordinary action because of an increase in
relative priority. Synonym: Stock chase
Export
Compliance: Complying with rules for exporting
products, including packaging, labeling, and documentation.
Export
Broker: An enterprise that brings together
buyer and seller for a fee, then eventually withdraws from the transaction.
Export
Declaration: 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.
Export
License: 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.
Export Management Company:
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.
Export Sales Contract:
The initial document in any international transaction; it details the specifics
of the sales agreement between the buyer and seller.
Export Trading Company:
A firm that buys domestic products for sale overseas. A trading company takes
title to the goods; an export-management company usually does not.
Exporter Identification Number (EIN): 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.
Express: (1) Carrier payment to its customers when ships, rail cars,
or trailers are unloaded or loaded in less than the time allowed by contract
and returned to the carrier for use. See Demurrage, Detention. (2) The use of priority
package delivery to achieve overnight or second-day delivery.
Extended Enterprise: The
notion that supply chain partners form a larger entity which works together as
though it were a single unit.
Extensible Markup Language (XML): 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.
External
Factory: 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.
Extranet: 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. Antonym:
Intranet.
Ex Works: 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.
5-Point Annual Average:
Method frequently used in PMG studies to establish a representative average for
a one-year period. Calculation: [12/31/03 + 3/31/04 + 6/30/05 + 9/30/06 +
12/31/07]/5
5-S
Program: A program for organizing work
areas. Sometimes referred to as elements, each of the five components of the
program begins with the letter "S." They include sort, systemize,
shine or sweep, standardize, and sustain. In the UK, the concept is converted
to the 5-C program comprising five comparable components: clear out, configure,
clean and check, conformity, and custom and practice.
* Sort - get rid of clutter; separate out what is needed for the
operations. * Systemize/Set in Order - organize the work area; make it
easy to find what is needed.
* Shine - clean the work
area; make it shine.
* Standardize - establish schedules and methods of performing the cleaning
and sorting.
* Sustain - implement mechanisms to sustain the gains through
involvement of people, integration into the performance measurement system,
discipline, and recognition.
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