L Terms in the Supply Chain Glossary

The monetary value of labor used in manufacturing, combined with material and overhead costs to determine total production expenses.

A performance metric comparing output per unit of time or per labor hour to an established standard, reflecting worker efficiency.

An accounting method for inventory valuation where the most recently acquired items are considered sold or used first, unrelated to the actual physical flow of goods.

Last-mile delivery is the final stretch of a package’s journey from a warehouse to a customer’s door. It is increasingly coming under the logistics spotlight. It’s not just about getting items from point A to point B anymore; it’s about doing it quickly, efficiently, and in a way that delights the customer.

The final stage of goods transportation, moving items from a distribution hub to the customer’s doorstep.

A certification system evaluating a building’s sustainability based on criteria such as site development, water conservation, energy efficiency, material use, and indoor air quality.

The total time required to complete a process or receive goods, encompassing preparation, processing, transportation, and inspection stages.

A hybrid methodology combining lean’s focus on waste reduction with Six Sigma’s data-driven process improvement.

A forecasting method that applies demand patterns from similar products to predict the lifecycle stages of a new product family.

An evaluation of a product’s environmental impact from raw material extraction to disposal, covering production, distribution, use, and end-of-life processes.

An approach to evaluating alternatives by considering total costs over a product’s lifecycle, including acquisition, operation, and disposal expenses.

A supply chain function managing the movement, storage, and handling of goods to ensure timely delivery.

The network of partners involved in storage, transportation, and communication, enabling the flow of goods through the supply chain.

The electronic sharing of logistics-related information between systems.

The strategic coordination of forward and reverse goods flows and related data within the supply chain to meet customer needs.

A comprehensive plan aligning warehousing, transportation, and information systems with overall business objectives to optimize logistics performance.