O
Obsolete
Inventory: Inventory for which there is no
forecast demand expected. A condition of being out of date. A loss of value
occasioned by new developments that place the oldeer property at a competitive
disadvantage.
Offer: See Tender.
Offline: A computer term which describes work done outside of the
computer system or outside of a main process within the corporate system.
Offshore: Utilizing an outsourcing service provider located in a
country other than where the client is located.
On-Demand: Pertaining to work performed when demand is present.
Typically used to describe products which are manufactured or assembled only
when a customer order is placed.
One-Way
Networks: The advantages generally lie with either
the seller of buyer, but not with both. B2C web sites are one-way networks.
On-Line
receiving: A system in which computer
terminals are available at each receiving bay and operators enter items into
the system as they are unloaded.
Operating Differential Subsidy (ODS): A payment to an American-flag carrier by the U.S. government
to offset the difference in operating costs between U.S. and foreign vessels.
Operating
Ratio: A measure of operating efficiency
defined as Operating expenses divided by the Operating revenues x 100.
Operational Performance Measurements: (1) In traditional management, performance measurements
related to machine worker, or department efficiency or utilization. These
performance measurements are usually poorly correlated with organizational
performance. (2) In theory of contraints, performance measurements that link
causally to organizational performance measurements. Throughput, inventory, and
operating expense are examples. Also see: Performance Measures.
Optimization: The process of making something as good or as effective as
possible with given resources and constraints.
Order
Cycle: The time and process involved from
the placement of an order to the receipt of the order.
Order
Cycle Time: The time that elapses from
placement of order until receipt of order. This includes time for order
transmittal, processing, preparation, and shipping.
Order Entry and Scheduling: The process of receiving orders from the customer and
entering them into a company's order processing system. Orders can be received
through phone, fax, or electronic media. Activities may include
"technically" examining orders to ensure an orderable configuration
and provide accurate price, checking the customer's credit and accepting
payment (optionally), identifying and reserving inventory (both on hand and
scheduled), and committing and scheduling a delivery date.
Order
Fill: A measure of the number of orders
processed without stockouts, or the need to back order, expressed as a
percentage of all orders processed in the distribution center or warehouse.
Order
Management: The planning, directing,
monitoring, and controlling of the processes related to customer orders,
manufacturing orders, and purchase orders. Regarding customer orders, order
management includes order promising, order entry, order pick, pack and ship,
billing, and reconciliation of the customer account. Regarding manufacturing
orders, order management includes order release, routing, manufacture,
monitoring, and receipt into stores or finished goods inventories. Regarding
purchase orders, order management includes order placement, monitoring,
receiving, acceptance, and payment of supplier.
Order Management Costs:
One of the elements comprising a company's total supply chain management costs.
These costs consist of the following:
1. New Product Release Phase In and
Maintenance: This includes costs associated with
releasing new products to the field, maintaining released products, assigning
product ID, defining configurations and packaging, publishing availability
schedules, release letters and updates, and maintaining product databases.
2. Create Customer Order: This includes costs associated with creating and pricing
configurations to order and preparing customer order documents.
3. Order Entry and Maintenance: This includes costs associated with maintaining the
customer database, credit check, accepting new orders, and adding them to the
order system, as well as later order modifications.
4.Contract/Program and Channel
Management: This includes costs related to
contract negotiation, monitoring progress, and reporting against the customer's
contract, including administration of performance or warranty-related issues.
5. Installation Planning: This includes costs associated with installation engineering,
scheduling and modification, handling cancellations, and planning the
installation.
6. Order Fulfillment: This includes costs associated with order processing,
inventory allocation, ordering from internal or external suppliers, shipment
scheduling, order status reporting, and shipment initiation.
7. Distribution: This includes costs associated with warehouse space and
management, finished goods receiving and stocking, processing shipments,
picking and consolidating, selecting carriers, and staging products/systems.
8. Transportation, Outbound Freight,
and Duties: This includes costs associated with
all company-paid freight duties from point of manufacturer to end customer or
channel.
9. Installation: This includes costs associated with verification of site
preparation, installation, certification, and authorization of billing.
10. Customer Invoicing/Accounting: This includes costs associated with invoicing, processing
customer payments, and verification of customer receipt.
Original Equipment Manufacturer (OEM): A manufacturer that buys and incorporates another
supplier's products into its own products. Also, products supplied to the
original equipment manufacturer or sold as part of an assembly. For example, an
engine may be sold to an OEM for use as that company's power source for its
generator units.
Outbound Logistics: The process related to the movement and storage of products
from the end of the production line to the end user.
Out-of-Pocket
Cost: The cost directly assignable to a
particular unit of traffic and which a company would not have incurred if it
had not performed the movement.
Outlier: A data point that differs significantly from other data for
a similar phenomenon. For example, if the average sales for a product were ten
units per month, and one month the product had sales of 500 units, this sales
point might be considered an outlier.
Outpartnering: The process of involving the supplier in a close partnership
with the firm and its operations management system. Outpartnering is
characterized by close working relationships between buyers and suppliers, high
levels of trust, mutual respect, and emphasis on joint problem solving and
cooperation. With outpartnering, the supplier is not viewed as an alternative
source of goods and services (as observed under outsourcing), but rather as a
source of knowledge, expertise, and complementary core competencies.
Outpartnering is typically found during the early stages of product life cycle
when dealing with products that are viewed as critical to the strategic
survival of the firm. Also see: Customer-Supplier Partnership.
Outsource: To utilize a third party provider to perform services
previously performed in house. Examples include manufacturing of products and
call center/customer support.
Outsourced Cost-of-Goods Sold: Operations performed on raw material outside of the
responding entity's organization that would typically be considered internal to
the entity's manufacturing cycle. Outsourced cost-of-goods sold captures the
value of all outsourced activities that roll up as cost-of-goods sold. Some
examples of commonly outsourced areas are assembly, test, metal finishing or
painting, and specialized assembly process.
Over, Short, and damaged (OS&D): This is typically a report issued at the warehouse when
goods are damaged. Used to file a claim with a carrier.
Over-the-Road: A motor carrier operation that reflects long-distance
moves; the opposite of local operations.
http://www.inboundlogistics.com
