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Thursday, December 29, 2016

Glossary of Supply Chain Terms "D"



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.


Deadhead: The return of an empty transportation container to its point of origin. See Backhaul.

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]

Delta Nu Alpha: A professional association of transportation and traffic practitioners.

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.

Density rate: A rate based upon the density and shipment weight.

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.

Destination: The location designated as a receipt point for goods/shipment.

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.

Devanning: The unloading of cargo from a container or other piece of equipment. See Stripping.


DFZ: See Duty Free Zone

Differential: A discount offered by a carrier that faces a service time disadvantage over a route.

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.

Direct-to-Store (DTS) Delivery: Same as Direct 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.

Distribution Warehouse: A finished goods warehouse from which a company assembles customer orders.

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.

DOA: See Dead on Arrival.

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.


Domestic Trunk Line Carrier: A classification for air carriers that operate between major population centers. These carriers are now classified as major carriers.

Door to Door: The through-transport of goods from consignor to consignee.

Door to Port: The through transport service from consignor to port of importation.

Double Bottoms: A motor carrier operation that involves one tractor pulling two trailers.

Double-Pallet Jack: A mechanized device for transporting two standard pallets simultaneously.

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.


Drawback: See Duty Drawback

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 Operation: A motor carrier that has both common and contract carrier operating authority.

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.

Dunnage: The packing material used to protect a product from damage during transport.

DUNS Number: A coded, numerical representation assigned to a specific company (USA).

Duty: A tax imposed by a government on merchandise imported from another country.

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.

80/20 Rule: A term referring to the Pareto principle. This principle suggests that most effects come from relatively few causes; that is, 80% of the effects (or sales or costs) come from 20% of the possible causes (or items). Also see: ABC Classification, Pareto


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