Third-Party Logistics - An external company that manages logistics operations including warehousing and fulfillment for other organizations

Group authorized by ANSI to develop and maintain EDI standards used primarily in United States

EDI 856 transaction that provides detailed information about shipped goods including contents packaging carrier and tracking details

Classification system indicating how quickly stock or product moves through warehouse with fast movers having high turnover

Method of managing stock by grouping products into three categories: finished goods work-in-process and raw materials

Charges added to invoice due to previously agreed upon terms

Character set containing letters and may include control and special characters but no numeric characters

Inventory reserved for specific orders or customers that cannot be used to fulfill other orders

Character set composed of both letters and numeric characters and may include control and special characters

Organization established to define maintain and coordinate standards in the United States

American National Standards Institute - Organization chartered to develop uniform standards for inter-industry electronic exchange of business transactions

Application Error and Acknowledgement Message - EDIFACT message informing issuer their message was received but rejected due to errors or acknowledging receipt

Application Programming Interface - A set of protocols that allows different software applications to communicate with each other

Software application designed to process specific business function

Accredited Standards Committee - Team chartered by ANSI to develop specific sets of EDI standards

Applicability Statement 1 - Secure and reliable messaging over SMTP and S/MIME using signing encryption and MDN conventions

Applicability Statement 2 - Secure messaging over HTTP or HTTPS using same signing encryption and MDN conventions as AS1 with real-time transactions

Applicability Statement 3 - Secure and reliable messaging over FTP using S/MIME with client/server model and push/pull protocol

Applicability Statement 4 - Secure B2B document exchange using web services and SOAP developed by OASIS ebXML committee

Accredited Standards Committee X12 - Organization established by ANSI to develop uniform standards for electronic data exchange

Replenishment method using pre-set inventory thresholds and real-time data to reorder stock automatically

Calculation used to determine product's average daily usage rate

Monthly usage figure calculated for reorder point models

Total revenue divided by total units sold showing typical selling price per unit

Mean number of days required to research investigate and resolve retailer deductions

Average price at which products are sold to end consumers at retail locations

Product ordered but temporarily out of stock and will be shipped when available

Guidelines for handling stockouts where units unavailable immediately will be delivered later

Process allowing customers to place orders even though vendor lacks sufficient stock

Machine-readable representation of information using patterns of lines dots or symbols readable by optical scanners

Speed of data transmission measured in number of signal changes or symbols transmitted per second over communication channel

Legal document between shipper and carrier detailing goods being transported

Shipment where receiver doesn't see supplier information only distribution center details

Bill of Materials - Parts list of components needed to complete an end-item for sale

Phenomenon where small demand changes at retail level cause amplified variations upstream in the supply chain

Individual box or case containing multiple product units for shipping and handling

Standard representation of symbol letter number or special character represented in computer as byte

Finite set of characters considered complete for given purpose

Penalty fee imposed by retailers on suppliers for non-compliance with EDI or supply chain requirements

Cost of Goods Sold - Direct costs attributable to production of goods sold by company

Process of developing and detailing new standard

Predetermined period in which data is exchanged between computers

Protocol establishing communication parameters between two computers including baud rate transmission type and parity setting

Comparing information sent by EDI user against established standards to identify and reject missing data elements or syntax errors

Label containing required retailer-specific information affixed to shipments

Smallest subdivision of composite data element containing single piece of information

Indicates data segment or element presence is at discretion of sending party or dependent on other element values

Specific arrangement of processor storage devices communication devices and features within computer system

Formal notice from mailbox system that transmission successfully reached intended mailbox or was retrieved by addressee

Collaborative Planning Forecasting and Replenishment - Trading partners share information to optimize inventory and reduce costs

Ability to make and maintain connection between two or more points in telecommunications system

Logistics practice where products are transferred directly from inbound to outbound transportation with minimal storage time

Comma-Separated Values file format storing tabular data using commas to distinguish between values

Measurement of how efficiently cargo space is used in trucks or containers

Periodic counting of subset of inventory to verify accuracy without full shutdown

Representation of facts concepts or instructions in formalized manner suitable for communication interpretation or processing

Comprehensive table of terms used within specific application ensuring each term has precise and consistent meaning

Individual piece of information within an EDI document such as quantity price or item number

Defined characteristic of data element such as type length or acceptable values

Document describing attributes of all data elements within EDI standard including data type and acceptable values

Unique reference number used to identify element and make cross-reference between elements

Character used to indicate new element of data has started

Task of keying in data to computer system from source document

Condition of data in whole original and uncorrupted form

Method by which information in one format is restructured to different format

Logical group of related data elements identified by a segment ID

Document providing definitions and formats of data segments used to create transaction set

Unique code consisting of alphanumeric characters appearing as first data element indicating segment purpose

Character indicating data segment's mandatory or conditional status

Special character inserted immediately following last data element of segment

Distribution Center - Warehouse facility where goods are received stored and shipped to stores

Inventory that cannot be sold due to obsolescence damage or lack of demand

Process of tracking disputing and resolving retailer deductions from supplier payments

Delivery Schedule Forecast Message - EDIFACT message from party planning use or consumption to party planning supply

Delivery Just In Time Message - EDIFACT message conveying precise delivery sequence and JIT schedule requirements

Despatch Advice Message - EDIFACT message specifying details for goods despatched or ready for despatch

Electronic signature authenticating sender identity and ensuring original content is unchanged via encrypted document digest

Digital Subscriber Line - Technology for bringing high-bandwidth information over ordinary copper telephone lines

Supplier distributes their own product without using intermediaries

Point-to-point connection where trading partners communicate directly without intermediaries

Communication between two trading partners where message is transmitted directly from one computer to other through modem

Data Interchange Standards Association - Serves as secretariat for ANSI ASC X12 committee

Total logistics and distribution expenses expressed as percentage of revenue

Average cost to ship each individual unit including freight handling and warehousing

Revenue generated per inch of retail shelf space measuring space productivity

Transfer of information from mainframe computer to microcomputer

Order fulfillment method where supplier ships directly to end customer on behalf of retailer

Distribution type combining both direct and indirect distribution methods

Packing material used to protect goods in transit

Direct Store Delivery - Vendor delivers products directly to retail stores bypassing distribution centers

Data Universal Numbering System - Unique nine-digit identifier for businesses assigned by Dun & Bradstreet

European Article Number - Barcoding standard that is superset of original 12-digit UPC system

Enterprise Application Integration - Software tools supporting integrating applications across company or enterprise

EDI standard developed by EAN General Assembly based on UN/EDIFACT for retail sector now used across healthcare construction and publishing

ebXML Messaging Service - Secure and reliable SOAP/Web Services based packaging routing and transport protocol

B2B industry group and EDIFACT EDI standard subset for high tech and electronics industries in Europe

Optimal order quantity that minimizes total inventory costs including ordering and holding

Electronic Data Interchange - Computer-to-computer exchange of business documents in standardized electronic format

Adherence to trading partner's specific EDI requirements and standards

Header and trailer information that wraps EDI transactions for proper routing and identification

Configuration that transforms data between internal systems and EDI standard formats

Agreed-upon formats and protocols that ensure EDI documents can be understood across different systems

Software that converts data between internal formats and EDI standards

Value-Added Network - Third-party service that manages EDI document transmission between trading partners

Electronic Data Interchange for Administration Commerce and Transport - International EDI standard developed under United Nations

Electronic Funds Transfer - Broad term for transmitting payment instructions over computer network

Conducting business transactions electronically using computer networks and the Internet

Pair of data segments designating transaction set functional group or interchange at beginning and end

Designated holding location for electronic messages on user's computer or third-party network

Safety inventory kept to cover unexpected demand spikes or supply disruptions

Packaged software systems using database technology and single interface to control all information related to company's business

Combination of header trailer and sometimes other control segments defining start and end of individual EDI message

First In First Out - Inventory method assuming oldest items are sold first

Distributors working within specific geographical area with territorial rights

Percentage of customer orders fulfilled completely from available inventory measuring ratio of requested items to items supplied using on-hand stock

Delivered cost to retailer including product cost freight duties and handling charges

Five categories of stock: packing materials work-in-process raw materials finished goods and maintenance repair and operating supplies

Plain text file with data organized in fixed-field format

Free on Board - Shipping term defining when ownership and liability of transported goods transfers

Shipping arrangement where receiver pays transportation charges

Shipping arrangement where sender pays transportation charges

Microcomputer or minicomputer used to communicate with mainframe performing mapping translation and communication functions

Forward Stocking Agreement - Retailer requires supplier to stock inventory near store locations

File Transfer Protocol - Common method for moving files between computers over the Internet or standard network protocol for exchanging files over TCP/IP networks

Method of transmitting information over communication channel where signals may be sent in both directions simultaneously

Automated response confirming EDI document receipt and processing status

Point of interconnection between electronic networks enabling communication by linking third-party networks

Global Location Number - Unique identifier for physical locations and legal entities

Total dollar amount of retailer chargebacks divided by total sales before dispute resolution

Revenue minus cost of goods sold expressed as percentage of revenue

Global organization developing supply chain standards including barcodes and EDI formerly known as organization that standardized UPC barcode

Guaranteed Redistributed Shelf Life - Amount of time calculated that product will last from distribution through retail sale

Global Trade Item Number - Unique identifier for products used in supply chain and retail

Health Insurance Portability and Accountability Act - US law establishing national standards for electronic health care transactions based on X12

Health Level 7 - Standard for healthcare industry data exchange

HyperText Transfer Protocol - Protocol for requesting and transmitting files especially web pages over internet

HyperText Transfer Protocol Secure - Combination of HTTP with SSL/TLS for encryption and secure identification

Central facility or system that consolidates and distributes goods or information

Transportation and receiving of raw materials or goods coming into facility

Interchange Control Trailer - Marks end of interchange containing one or more functional groups and related control segments

Activities involved in converting idea into working computer system including consultation hardware installation and integration

Applied to systems that cannot communicate due to dissimilar documents files with different formats or different protocols

Difference between cost and initial retail price expressed as percentage before markdowns

Smaller package unit inside master carton containing subset of total case quantity

Process of exchanging data between two different applications in automated fashion with minimal manual intervention or adapting systems and standards to ensure compatible communication

Electronic exchange between two business partners indicated by interchange control header and trailer comparable to outer envelope

Envelope containing interchange header and trailer segments control number and number of functional groups

Point of interaction where different systems or software applications connect and exchange data

Process of using translation software to align system with input requirements of receiving computer system

Percentage match between physical inventory counts and system records

Number of days current inventory will last at current sales velocity

Process of overseeing and controlling inventory levels ordering and stock movement

Bill requesting payment for goods or services delivered

Interchange Control Header - Opening segment of EDI transmission containing routing information

International Standards Organization - Organization with UN to which all standards-setting bodies defer

Unique identifiers for products varying by sector and geographic area

Inventory management approach minimizing stock levels by receiving goods only when needed to reduce holding costs

Grouping related items together to streamline order fulfillment and reduce picking errors

Total cost of product including purchase price transportation duties taxes and fees

Key Performance Indicator - Metric used to measure supplier compliance and performance

Time between order placement and product delivery or availability or time between start of process and its conclusion

Last In First Out - Inventory costing method assuming most recent items are sold first

Planning and execution of goods movement and storage from origin to consumption

Group of segments that are collectively repeated in serial fashion up to specified maximum number of times

Less Than Truckload - Shipment that doesn't require full truck and shares space with other loads

Third-party service contracted at distribution centers to unload trucks

Data in designated fields so computer can automatically process data without interpretation or re-keying

Repository for messages in electronic mail system or EDI server with authentication for authorized transmissions

Requirement that data segment data element or component element must be included

Minimum Advertised Price - Lowest price retailers can advertise product for sale

Process of taking data from company-specific format and fitting it to EDI standard format

Software designed to perform mapping process converting between formats

Outer shipping container holding multiple inner packs or individual units

Number of multiples of product that must be purchased from primary vendor

Maximum stock level or order-up-to number in inventory system using minimum/maximum policy

Mixed Freight Consolidation - Combining multiple smaller loads into one freight shipment

Minimum stock level triggering replenishment in inventory system using minimum/maximum policy

Policy triggered when supply reaches minimum at which point order is placed up to maximum inventory level

Block of information in EDI making up business transaction or part of business transaction

Graphic display of layout of message

Service segment starting and uniquely identifying message

Service segment ending message

Identified and structured set of data elements covering requirements for specified transaction type

Device that encodes information into electronically transmittable form and restores it to original analog form

Electronic communications system linking computers together to allow EDI to take place

Company that maintains network and offers services and capabilities to others for fee

Minimum Order Quantity - Minimum amount of product supplier will sell in single order

Material Requirements Planning - System calculating material needs based on production schedules

Maintenance Repair and Operating supplies - Category of inventory for maintaining operations

Latest date shipment can arrive to avoid retailer penalties or chargebacks

Chargebacks remaining after successful disputes divided by sales showing actual penalty impact

Segment that directly relates to another segment in identified and structured group of segments

National Institute of Standards and Technology - US standards organization

National Motor Freight Classification - Organization managing standards for LTL shipping including packaging and classification requirements

Access point in network

Actual quantity of products physically available in warehouse or store

Amount of product immediately available to consumers in store that can be taken off shelf

Percentage of shipments delivered within retailer's required delivery window

Out-of-Stock - Item not immediately available for consumer to purchase

Data element or segment containing information not required by standard but may be included at discretion

Percentage of ordered quantity successfully shipped from available inventory

Software managing the entire order lifecycle from placement to fulfillment

Set number of units ordered when inventory levels reach designated reorder point

Minimum amount of product customer must order as negotiated between retailer and supplier

Requirement that retailer order in set multiples rather than individual units

Complete cycle from customer order through product delivery to payment receipt

Open Systems Interconnection - Seven-layer model enabling all networks and computers to communicate freely

Transportation and shipping of finished goods leaving facility to customers

Document listing contents of shipment included with physical delivery

Flat structure used as base for storing and transporting goods

Access of data to network by traveling across another network via gateways

Actual dollar profit earned per unit sold after deducting all costs

Percentage of orders delivered complete on-time with accurate documentation and no damage

Real-time inventory tracking system continuously updated with each transaction

Stock that inventory system classifies as sellable and available even though no actual stock exists

Process of selecting items from inventory and packaging them for shipment

Purchase Order - Document authorizing supplier to deliver goods or services at specified terms

Proof of Delivery - Documentation issued upon product delivery confirming receipt

System recording sales transactions and inventory movement at retail location

Progressive Rotating Order number - Unique tracking number assigned by freight carrier

Strategic process of acquiring goods and services including sourcing and supplier management

Gross profit generated per inch of retail shelf space measuring profitability of space

Gross profit divided by revenue showing percentage of sales retained after COGS

Partner Interface Processes - RosettaNet PIPs defining business processes between partners via XML-based dialogs

Type of communication where messages sent directly from one business partner to another without VAN

Price/Sales Catalogue Message - EDIFACT message transmitting pricing and catalogue details for goods and services

Industry or company-specific data format developed for transmission not complying with EDIFACT

Set of rules defining how information can flow within computer or communication system including syntax semantics and timing or communication standards determining message content and format

Document issued by buyer to seller detailing terms of sale

Data element qualified by another element with value expressed as code giving specific meaning

Policy driven by reorder point R and reorder quantity Q where replenishment quantity remains consistent

Quick Response code containing data readable by scanners and mobile devices

Unprocessed materials used in production of finished goods

Redistribution Center - Secondary location where products are stored and shipped to stores or other locations

Process of accepting and processing incoming shipments at warehouse or store

Variance between expected shipment contents and what was actually received

Unique alphanumeric indicator specifying position of data element within data segment

Predetermined inventory level that triggers new purchase order or specific number of products that must be reached to trigger system to add product to purchase order

Process of restocking inventory to maintain optimal levels at retail locations

Bottom line supplier hopes to reach when adding money to inventory used to calculate extra quantity customers must buy

Receiving Advice - EDIFACT message reporting physical receipt of goods allowing discrepancy reporting

Party to whom EDI message or transaction set is transmitted

Remittance Advice Message - EDIFACT communication providing detailed accounting relative to payment or financial settlement

Entry in segment table stating how many times particular segment may repeat

Radio Frequency Identification - Technology using radio waves to identify and track objects allowing data broadcast from microchip

Non-profit consortium developing open business process standards for global trading network subsidiary of GS1 US

Retailer's specific instructions for how suppliers should ship products

Software as a Service - Cloud-based software delivered over the Internet

Extra inventory held to prevent stockouts due to demand or supply variability or inventory available to accommodate random increases in demand

Number of days added to lead time to accommodate lengthier supplier lead times minimizing stockout risk

Rate at which products sell over specific time period measured in units per day or week

Supplier maintains ownership of products until scanned and sold at retail POS

Standard Carrier Alpha Code - Unique four-letter code identifying transportation carriers

Software Development Kit - Middleware enabling software created by other publishers to integrate with an application

Methods adopted to protect data from loss corruption and unauthorized access including passwords ID numbers and verification

Supply Chain Management - Effective integration of processes related to forecasting demand acquiring raw materials manufacturing inventorying transportation sale and measuring customer satisfaction

Part of EDI message made up of related data elements separated by delimiter conveying part of business transaction

Three character alphanumeric code identifying segment

Character at end of segment indicating no more data follows

Party in business transaction who sells goods or services to buyer for consideration

Party who transmits EDI messages

Segments that are envelopes delimiter string advice and section separators in EDIFACT

Metric determining retail vendor's ability to avoid stockouts throughout replenishment lead time

Products and packaging requiring no unpacking before being placed on retailer shelves

Specific destination address where goods should be delivered

Expected timeframe in which product should arrive at distribution center

Reduction in inventory due to theft damage administrative error or supplier fraud or loss of inventory due to theft damage or error

Stock Keeping Unit - Unique identifier for each distinct product or service used to track individual products in inventory

Process of determining which items or SKUs to keep in supplier's catalog and which to suspend or discontinue

One-time payment retailers charge suppliers for shelf space allocation

Systems Network Architecture - IBM proprietary communication protocol

Process of identifying evaluating and engaging suppliers to provide goods or services

Damage to products making them unfit for sale

Serial Shipping Container Code - Unique 18-digit number identifying logistics units

Rules established to enable incompatible computers and communication systems to exchange information seamlessly

Situation where inventory is depleted and unavailable to fulfill orders

Percentage of demand not fulfilled due to out-of-stock situations

Percentage of available warehouse space currently occupied by inventory

Adherence to retailer's specific requirements for product labeling pricing and presentation

Network of organizations involved in producing and delivering products to end customers

Real-time tracking and monitoring of goods and information throughout supply chain

Plan predicting how much product vendor will need detailing steps to manufacture store and ship product

Clock-controlled method of data transmission for use in high-speed circuits or networks

Program in which factors variables and data to be used are looked up from table or matrix

Transportation Data Coordinating Committee - Early 1960s standards-setting committee

Use of network to transmit voice data or image

External provider managing logistics operations for other companies

Service provider working as EDI message clearinghouse providing mailbox and value-added services

Standard pallet configuration describing stacking pattern of items on particular pallet platform

Truckload - Full truck shipment dedicated to single customer or destination

Transportation Management System - Software optimizing shipping and freight operations

Complete time from purchase order receipt to invoice payment including all process steps

Ability to track product movement and history throughout supply chain

Temporary price reduction or marketing program offered to retailers or consumers

Unique identifier used with segment and data elements

Transmission Control Protocol/Internet Protocol - Basic communication language or protocol of Internet

Party other than sender or receiver such as EDI Network Services Provider providing goods or services

Early standard for EDI primarily used in UK retail sector introduced in 1982 as UN/GTDI implementation

Companies that exchange EDI documents and conduct business electronically or any entity regularly exchanging formatted data or another company with whom business is conducted

Document outlining all conditions allowing electronic communication between trading partners with electronic signature substituting for paper signatures

Segment ending every envelope providing count of segments transaction sets or functional groups with control number matching header

Complete EDI document containing specific business information like purchase order or invoice

Act of converting business document to and from EDI standard format

Software used to take data from vendor-specific flat file and convert it into EDI standard format

Program used to convert information from inhouse format to EDI format or vice versa

Uniform Code Council - Organization overseeing standards for product identification and electronic communications

Uniform Communication Standard - Subset of ANSI X12 used by grocery and retail-oriented industries

United Nations Center for Trade Facilitation and Electronic Business - Supporting activities to improve business trade and administrative exchange

United Nations Economic Commission for Europe - Trade and economic body administering EDIFACT

Organization of individuals or companies dealing with needs of those employing technique or technology in unified manner

Standardized quantity of goods assembled for handling and transportation

Unit of Measure - Standard quantity used for ordering selling or inventory tracking

Universal Product Code - Barcode standard for product identification in retail

Transfer of data from microcomputer to mainframe

Process of checking whether document is correct type for particular EDI system and whether it comes from and goes to authorized user

Value-Added Network - Service provider facilitating EDI document exchange between companies

Connection between two third-party networks allowing messages from one to be communicated to other

Rate at which inventory moves through supply chain or sells at retail

Unique number retailer assigns to each supplier for internal tracking

Number of days needed between orders to vendor to accumulate order large enough to waive freight charges

Third-party network performing services beyond data transmission including translation training and encryption or third-party entity handling electronic exchange between subscribers

Data element whose length changes depending on number of characters in actual data with minimum and maximum size specified

Verband der deutschen Automobilindustrie - German EDI data standard in automotive industry

Identifies publication of standard being used for generation or interpretation of data

Voluntary Inter-industry Commerce Standard - Subset of ANSI X12 used by general merchandise retail industry across North America

Vendor Managed Inventory - Supplier manages customer's inventory levels and replenishment pushing merchandise responsibility from retailer to manufacturer or system where vendor accepts responsibility for maintaining customer's inventory

Virtual Private Network - Secure network connection over public internet

Software controlling warehouse operations including inventory receiving and shipping

Browser-based EDI allowing companies to create and send EDI documents online

Selling products in large quantities to retailers rather than end consumers

Percentage of chargeback disputes successfully resolved in supplier's favor by count

Percentage of chargeback dollars successfully recovered through dispute process

Work-in-Process - Inventory currently in production or assembly but not yet finished goods

World Wide Web Consortium - Consortium defining standards such as HTTP for internet

Standard means of interoperating between different software applications running on variety of platforms over Internet

Warehouse Management System - Software controlling warehouse operations including inventory receiving and shipping

Consortium defining standards such as HTTP for internet

Web Services Description Language - Language for describing web services

Network protocol for packet switching

International standard for electronic messages in free format or early email system popular in Europe

Directory services standard of CCITT

Extensible Markup Language - Open standard for describing data defined by W3C

Simple file transfer protocol developed in 1977 for MODEM.ASM terminal program

File transfer protocol successor to XMODEM developed by Chuck Forsberg

File transfer protocol developed in 1986 offering improved performance and restartable transfers

Zentralverband Elektrotechnik- und Elektronikindustrie - Develops ZVEI format for transmitting article master data