I Terms in the Supply Chain Glossary

The unused capacity in non-critical resources beyond what is needed to support a system’s constraints, including protective and excess capacity.

Unnecessary inventory within a system, typically consisting of safety stock or surplus items that do not directly support operations.

Expenses not directly tied to specific tasks or products, such as utilities or administrative overhead.

The historical shift from manual labor to mechanized production in factories, leading to significant economic and social transformation.

The integration of advanced technologies, IT, and connectivity into manufacturing to enable customization, innovation, and value chain transformation.

A structured model of an organization’s information flow, addressing functions, coordination requirements, data modeling, and management structures.

The tools and systems for collecting, processing, storing, and transmitting data, supporting business planning and operations through hardware, software, and networks.

A nonprofit organization supporting purchasing and supply chain professionals with resources, certifications, and industry standards.

A supply chain enhanced by emerging technologies like AI and big data to improve efficiency, visibility, and responsiveness to disruptions and customer demands.

Global accounting standards designed to ensure consistent, reliable, and comparable financial reporting across countries.

A global network of standards organizations collaborating to develop and publish international standards across industries.

U.S. regulations governing the export of military-related items, including weapons and sensitive technologies, to ensure national security.

Stocks of materials and goods maintained for production, maintenance, or customer service, including raw materials, work-in-progress, and finished products.

The process of valuing and recording inventory using perpetual or periodic methods.

Techniques for aligning inventory levels and supply flow to maximize efficiency, customer satisfaction, and profitability across the supply chain.

The planning and control of inventory levels to balance supply and demand effectively.

Software tools providing real-time insights into inventory quantity, location, and status.

Technology that identifies optimal inventory strategies to enhance customer service and maximize ROI across the supply chain.

Strategies for determining inventory levels, order quantities, and safety stock to meet production and customer needs.

The rate at which inventory moves through a supply chain, measured by turnover frequency.

The Internet of Things (IoT) is a network comprised of physical objects capable of gathering and sharing electronic information through the Internet.

An independent audit confirming an organization’s compliance with ISO standards.