V
Valuation
Charges: Transportation charges to shippers
who declare a value of goods higher than the value of the carriers' limits of
liability.
Value-Added Network (VAN):
A company that acts as a clearinghouse for electronic transactions between
trading partners. A third party supplier that receives EDI transmissions from
sending trading partners and holds them in a mailbox until retrieved by the
receiving partners.
Value-Added Productivity Per Employee: Contribution made by employees to total product revenue
minus the material purchases divided by total employment. Total employment is
total employment for the entity being surveyed. This is the average full-time
equivalent employee in all functions, including sales and marketing,
distribution, manufacturing, engineering, customer service, finance, general
and administrative, and other. Total employment should include contract and
temporary employees on a full-time equivalent (FTE) basis.
Calculation: Total Product
Revenue-External Direct Material/[FTEs]
Value Adding/Non-Value Adding: Assessing the relative value of activities according to how
they contribute to customer value or to meeting an organization's needs. The
degree of contribution reflects the influence of an activity's cost driver(s).
Value
Analysis: A method to determine how features
of a product or service relate to cost, functionality, appeal and utility to a
customer (i.e., engineering value analysis). Also see: Target Costing.
Value Based Return (VPB):
A measure of the creation of value. It's the difference between economic profit
and capital charge.
Value
Chain: A series of activities, when
combined, define a business process; the series of activities from
manufacturers to the retail stores that define the industry supply chain.
Value Chain Analysis: A
method of identifying all the elements in the linkage of activities a firm
relies on the secure the necessary materials and services starting from their
point of origin to manufacture, and to distribution of their products and
services to an end user.
Value-of-Service Pricing:
Pricing according to the value of the product the company is transporting;
third-degree price discrimination; demand-oriented pricing; charging what the
traffic will bear.
Value
Proposition: What the hub offers to members. To
be truly effective, the value proposition has to be two-sided - a benefit to
both buyers and sellers.
Vendor
Code: a unique identifier, usually a
number and sometimes the company's DUNS number, assigned by a customer for the
vendor it buys from.
Example: 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.
Vendor-Managed Inventory (VMI): The practice of retailers making suppliers responsible for
determining order size and timing, usually based on receipt of retail POS and
inventory data. Its goal is to increase retail inventory turns and reduce stock
outs.
Vertical Hub/Vertical Portal: Serving one specific industry. Vertical portal web sites
are ones that cater to customers within a particular industry. Similar to the
term "vertical industry," these web sites are industry specific, and,
like a portal, they make use of Internet technology by using the same kind of
personalization technology. In addition to industry-specific vertical portals
that cater to consumers, another definition of a vertical portal is one that
caters solely to other businesses.
Vertical Integration:
The degree to which a firm has decided to directly produce multiple
value-adding stages, from raw material to the sale of the product to the
ultimate consumer. The more steps in the sequence, the greater the vertical
integration. A manufacturer that decides to begin producing parts, components,
and materials that it normally purchases is said to be backward integrated.
Likewise, a manufacturer that decides to take over distribution and perhaps
sale to the ultimate consumer is said to be forward integrated.
Viral
Marketing: The concept of embedding
advertising into web portals and pop ups, and as e-mail attachments to spread
the word about products or services that the target audience may not otherwise
have been interested in.
Virtual Corporation:
The logical extension of outpartnering. With the virtual corporation, the
capabilities and systems of the firm are managed with those of the suppliers,
resulting in a new type of corporation where the boundaries between the
suppliers' systems and those of the firm seem to disappear. The virtual
corporation is dynamic in that the relationships and structures formed change
according to the changing needs of the customer.
Virtual
Factory: A changed transformation process
most frequently found under the virtual corporation. It's a transformation
process that involves merging the capabilities and capacities of the firm with
those of its suppliers. Typically, the components provided by the suppliers are
hose that are not related to a core competency of the firm, while the
components managed by the firm are related to core competencies. One advantage
found in the virtual factory is that it can be restructured quickly in response
to changing customer demands and needs.
Visibility: The ability to access or view pertinent data or information
as it relates to logistics and the supply chain, regardless of the point in the
chain where the data exists.
Vision: The shared perception of the organization's future - what
the organization will achieve and a supporting philosophy. This shared vision
must be supported by strategic objectives, strategies, and action plans to move
in in the desired direction. Synonym: Vision Statement.
Voice Activated: Systems which guide users such as warehouse personnel via
voice commands.
von
Thunen's Belts: A series of concentric rings around
a city to identify where agricultural products would be produced according to
von Thunen's theory.
Voyage: The trip designation (trade route and origin/destination)
identifier, usually numerically sequential.
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