|
Vendor-managed Inventory
Vendor-managed inventory (VMI) is an Field inventory management, inventory management practice in which a supplier of goods, usually the manufacturer, is responsible for optimizing the inventory held by a distributor. Under VMI, the retailer shares their inventory data with a vendor (sometimes called supplier) such that the vendor is the decision-maker who determines the order size, whereas in traditional inventory management, the retailer (sometimes called distributor or buyer) makes his or her own decisions regarding the order size. Thus, the vendor is responsible for the retailer's ordering cost, while the retailer usually acquires ownership of the stock and has to pay for their own holding cost. One supply chain management glossary identifies VMI as although a 2008 article notes that there is no standard definition of VMI and the term's usage varies "significantly" among companies supporting VMI processes.Chhabra, N.Collaborative Fulfillment ''APICS e-News'', published 24 Septem ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Field Inventory Management
Inventory management, also known as field inventory management, is the task of understanding the stock mix of a company and the handling of the different demands placed on that stock. The demands are influenced by both externality, external and Internality, internal factors and are balanced by the creation of purchase order requests to keep supplies at a reasonable or prescribed level. Inventory management is important for every other business enterprise. It includes tasks related to setting and reviewing inventory targets.Gartner, Inc.Cover Considerations — How to Optimize Retail and Consumer Product Inventory Targets published on 15 February 2017, accessed on 25 April 2025 Overview A typical inventory management process for a retail business follows the following sequence: # Request for new inventory from stores to head office, # Head office issues a purchase order to the vendor, # Vendor ships the goods, # Warehouse receives the goods, # Warehouse stores and distributes to t ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Supply Chain
A supply chain is a complex logistics system that consists of facilities that convert raw materials into finished products and distribute them to end consumers or end customers, while supply chain management deals with the flow of goods in distribution channels within the supply chain in the most efficient manner. In sophisticated supply chain systems, used products may re-enter the supply chain at any point where residual value is recyclable. Supply chains link value chains. Suppliers in a supply chain are often ranked by "tier", with first-tier suppliers supplying directly to the client, second-tier suppliers supplying to the first tier, and so on. The phrase "supply chain" may have been first published in a 1905 article in ''The Independent (New York City), The Independent'' which briefly mentions the difficulty of "keeping a supply chain with India unbroken" during the British expedition to Tibet. Overview A typical supply chain can be divided into two stages namely, produ ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Scan-based Trading
Scan-based trading (SBT) is the process by which suppliers maintain ownership of inventory within retailers' warehouses or stores until items are scanned at the point of sale. Suppliers, such as manufacturers or farmers, own the product until it is purchased by the customer, with the store or venue then buying the product from the supplier and reselling it to the customer. Analysts in the grocery sector estimate scan-based trading accounted for $21 billion dollars in consumer goods purchased in the grocery industry alone in 2020, or nearly 3% of overall sales. History Traditionally scan-based trading programs use electronic data interchange solutions as the key component to synchronize information on store locations (Organizational Structure 816), items (Price/Sales Catalog 832), daily sales (Product Activity Data 852), receivings (Receiving Advice 861), billings (Invoice 810) and payments (Remittance Advice 820) between a retailer and its Scan-Based Trading suppliers. Pros and c ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Electronic Data Interchange
Electronic data interchange (EDI) is the concept of businesses electronically communicating information that was traditionally communicated on paper, such as purchase orders, advance ship notices, and invoices. Technical standards for EDI exist to facilitate parties transacting such instruments without having to make special arrangements. EDI has existed at least since the early 1970s, and there are many EDI standards (including ASC X12, X12, EDIFACT, OFTP, ODETTE, etc.), some of which address the needs of specific industries or regions. It also refers specifically to a family of standards. In 1996, the National Institute of Standards and Technology defined electronic data interchange as "the computer-to-computer interchange of a standardized format for data exchange. EDI implies a sequence of messages between two parties, either of whom may serve as originator or recipient. The formatted data representing the documents may be transmitted from originator to recipient via telecommun ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Consignment Stock
Consignment is a process whereby a person gives permission to another party to take care of their property while retaining full ownership of the property until the item is sold to the final buyer. It is generally done during auctions, shipping, goods transfer, or putting something up for sale in a Consignment, consignment store. The owner of the goods pays the third-party a portion of the sale for facilitating the sale. Consignors maintain the rights to their property until the item is sold or abandoned. Many consignment shops and online consignment platforms have a set time limit (usually 60–90 days) at which an item's availability for sale expires. Within the time of contract, reductions of the price are common to promote the sale of the item, but vary by the type of item sold (depending largely on the price point, or whether or not the item can be considered a luxury item). Consignment stock is stock and flow, stock legally owned by one party but held by another, meaning tha ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Obsolescence
Obsolescence is the process of becoming antiquated, out of date, old-fashioned, no longer in general use, or no longer useful, or the condition of being in such a state. When used in a biological sense, it means imperfect or rudimentary when compared with the corresponding part of other organisms. The international standard IEC 62402:2019 Obsolescence Management defines obsolescence as the "transition from available to unavailable from the manufacturer in accordance with the original specification". Obsolescence frequently occurs because a replacement has become available that has, in sum, more advantages compared to the disadvantages incurred by maintaining or repairing the original. Obsolete also refers to something that is already disused or discarded, or antiquated. Typically, obsolescence is preceded by a gradual decline in popularity. Consequences Driven by rapid technological changes, new components are developed and launched on the market with increasing speed. The resul ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
High Tech Industry
High technology (high tech or high-tech), also known as advanced technology (advanced tech) or exotechnology, is technology that is at the cutting edge: the highest form of technology available. It can be defined as either the most complex or the newest technology on the market. The opposite of high tech is ''low technology'', referring to simple, often traditional or mechanical technology; for example, a slide rule is a low-tech calculating device. When high tech becomes old, it becomes low tech, for example vacuum tube electronics. Further, high tech is related to the concept of mid-tech, that is a balance between the two opposite extreme qualities of low-tech and high tech. Mid-tech could be understood as an inclusive middle that combines the efficiency and versatility of digital/automated technology with low-tech's potential for autonomy and resilience. Startups working on high technologies (or developing new high technologies) are sometimes referred to as deep tech; the te ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Inventory
Inventory (British English) or stock (American English) is a quantity of the goods and materials that a business holds for the ultimate goal of resale, production or utilisation. Inventory management is a discipline primarily about specifying the shape and placement of stocked goods. It is required at different locations within a facility or within many locations of a supply network to precede the regular and planned course of production and stock of materials. The concept of inventory, stock or work in process (or work in progress) has been extended from manufacturing systems to service businesses and projects, by generalizing the definition to be "all work within the process of production—all work that is or has occurred prior to the completion of production". In the context of a manufacturing production system, inventory refers to all work that has occurred—raw materials, partially finished products, finished products prior to sale and departure from the manufacturing ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Symbiosis
Symbiosis (Ancient Greek : living with, companionship < : together; and ''bíōsis'': living) is any type of a close and long-term biological interaction, between two organisms of different species. The two organisms, termed symbionts, can for example be in Mutualism (biology), mutualistic, commensalism, commensalistic, or parasitism, parasitic relationships. In 1879, Heinrich Anton de Bary defined symbiosis as "the living together of unlike organisms". The term is sometimes more exclusively used in a restricted, mutualistic sense, where both symbionts contribute to each other's subsistence. This means that they benefit each other in some way. Symbiosis can be ''obligate'' (or ''obligative''), which means that one, or both of the organisms depend on each other for survival, or ''facultative'' (optional), when they can also subsist independently. Symbiosis is also classified by physical attachment. Symbionts forming a single body live ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Bullwhip Effect
The bullwhip effect is a supply chain phenomenon where orders to suppliers tend to have a larger variability than sales to buyers, which results in an amplified demand variability upstream. In part, this results in increasing swings in inventory in response to shifts in consumer demand as one moves further up the supply chain. The concept first appeared in Jay Forrester's ''Industrial Dynamics'' (1961) and thus it is also known as the Forrester effect. It has been described as "the observed propensity for material orders to be more variable than demand signals and for this variability to increase the further upstream a company is in a supply chain". Research at Stanford University helped incorporate the concept into supply chain vernacular using a story about Volvo. Suffering a glut in green cars, sales and marketing developed a program to sell the excess inventory. While successful in generating the desired market pull, manufacturing did not know about the promotional plans. Inst ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Electronic Data Interchange
Electronic data interchange (EDI) is the concept of businesses electronically communicating information that was traditionally communicated on paper, such as purchase orders, advance ship notices, and invoices. Technical standards for EDI exist to facilitate parties transacting such instruments without having to make special arrangements. EDI has existed at least since the early 1970s, and there are many EDI standards (including ASC X12, X12, EDIFACT, OFTP, ODETTE, etc.), some of which address the needs of specific industries or regions. It also refers specifically to a family of standards. In 1996, the National Institute of Standards and Technology defined electronic data interchange as "the computer-to-computer interchange of a standardized format for data exchange. EDI implies a sequence of messages between two parties, either of whom may serve as originator or recipient. The formatted data representing the documents may be transmitted from originator to recipient via telecommun ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Holding Cost
In marketing, carrying cost, carrying cost of inventory or holding cost refers to the total cost of holding inventory. This includes warehousing costs such as rent, utilities and salaries, financial costs such as opportunity cost, and inventory costs related to perishability, shrinkage, and insurance. Carrying cost also includes the opportunity cost of reduced responsiveness to customers' changing requirements, slowed introduction of improved items, and the inventory's value and direct expenses, since that money could be used for other purposes. When there are no transaction costs for shipment, carrying costs are minimized when no excess inventory is held at all, as in a just-in-time production system. Excess inventory can be held for one of three reasons. Cycle stock is held based on the re-order point, and defines the inventory that must be held for production, sale or consumption during the time between re-order and delivery. Safety stock is held to account for variability, ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
