Wiki

Cost of a product that has been shipped to a location, including the price of the goods, any fees for shipping, and any port fees, taxes, or customs d…..

A notification in EDI (Electronic Data Interchange) or XML (Extensible Markup Language) format sent ahead of a shipment listing its contents and shipp…..

African Growth and Opportunities Act – Effective October 1, 2000, the United States established a preferential program, the African Growth and Opportu…..

Acceptable Quality Limit is the quality level that is the worst tolerable. It describes the maximum number of acceptable during the random sampling of…..

Designs for textile printing, weaving or other forms of ornamentation, often purchased from outside artists or specialty studios that may be used for …..

Product assortment is made up of product breadth and depth, which is the number of product lines plus the variety within each of the lines. Speciality…..

Assortment planning is a process whereby products are selected and planned to maximize sales and profit for a specified period of time. The assortment…..

A system of optical character reading, scanning, and tracking of units by reading a series of printed bars for translation into a numeric or alphanume…..

Considered as the domestic currency or accounting currency. For accounting purposes, a firm may use the base currency to represent all profits and los…..

A sequence number associated with a specific batch or production run of products. It is used to track a product In the event of a quality and complian…..

A bill of lading (sometimes abbreviated as B/L or BoL) is a document issued by a carrier which details a shipment of merchandise and gives title of th…..

A bill of materials is a list of the raw materials, sub-assemblies, intermediate assemblies, sub-components, parts and the quantities of each needed t…..

A blanket order is defined as an order the customer makes with its supplier which contains multiple delivery dates scheduled over a period of time, so…..

Bottleneck means there is an interruption of flow somewhere in the supply chain. It typically refers to any point in business operations and services …..

A brand is a name, term, design or other feature that distinguishes one seller?s product from those of others. Today?s brands come in variety of forms…..

An original brand manufacturer, or OBM, is typically a company that sells an entire product made by a second company or including a component thereof …..

A brief is a document created by a buyer to describe what product they are searching for. It may contain pictures, description, expected dates, and po…..

The Business Social Compliance Initiative (http://www.bsci-intl.org/) is a business-driven initiative for companies committed to improving working con…..

The U.S. Central-America-Dominican Republic Free Trade Agreement (CAFTA) was implemented on a staggered basis, beginning with El Salvador on March 1, …..

A frequently used method is to divide the Annual Cost of Sales by the Average Inventory Level…..

A paperboard folding box that packs one or more pieces of merchandise for shipping or storage.…..

Side Beam…..

The cubic meter is the unit of volume in the International System of Units. The symbol used for cubic meters is m3. Less formally, cubic meter is some…..

Center Front…..

A freight term indicating that the seller is responsible for cost, the marine insurance, and the freight charges on an ocean shipment of goods.…..

A charge made against a supplier for loss, damage, delay, or overcharge.…..

Cut Make are the costs of cutting, sewing and finishing the garment, excluding costs of materials. Buyers will provide the materials which include the…..

Cut Make Trim is the costs of cutting, sewing and finishing the garment, including the costs of trims, namely threads and carton boxes. Buyers will pr…..

Product collection can be found within a product line, and one line can be composed of multiple collections. Collection can be seasonal or event-based…..

Document required by customs to determine true value of the imported goods, for assessment of duties and taxes. A commercial invoice (in addition to o…..

A commitment is a pre-order or letter of intent to a supplier that the buyer will be placing an official order. A commitment issued allows the vendor …..

Certification or confirmation that the manufacturer or supplier of a product, meets the requirements of accepted practices, legislation, prescribed ru…..

Independent agency created by the United States government in 1972 to evaluate products in an effort to prevent consumers from being harmed by defecti…..

A document prepared to show all details of cargo loaded in a container, e.g. weight (individual and total), measurement, markings, shippers, consignee…..

Process to optimize loading mixed sized products into a container to help buyers save on shipping costs. Software may be used that helps to minimize w…..

1 Cost Per Minute or better understood as Cost Per Standard Minute, is calculated by taking a factory?s overhead expenses and labor costs (excluding m…..

Country where the goods shipped were produced. Usually the country of origin is the same as the country of departure.…..

Critical Path Management (CPM) is a visibility management technique which maps out when a series of milestones and tasks are being planned and finishe…..

This landmark consumer product safety law passed in the United States provided CPSC department with significant new regulatory and enforcement tools a…..

A company?s sense of responsibility towards the community and environment (both ecological and social) in which it operates. Companies express this in…..

The documented permission to pass that a national customs authority grants to imported goods so that they can enter the country or to exported goods s…..

Cycle Time: The length of time for any operation, from start to completion. In the new product development sense, it is the length of time to develop …..

Term of sale signifying that the price invoiced or quoted by a seller includes all charges freight, insurance, other associated charges, and duties (a…..

The process of forecasting and managing the demand for products by different types of customers or channels.…..

The labour cost which is directly attributable to the garment, involving cutting, sewing, finishing (pressing, trimming and packing).…..

A distribution center is a warehouse or other specialized building stocked with products (goods) to be redistributed to retailers, to wholesalers, or …..

The selling channels supported by an enterprise. These may include retail sales, distribution partner (e.g. wholesale) sales, original equipment manuf…..

Drop shipping is a supply chain management technique in which the retailer does not keep goods in stock but instead transfers customer orders and ship…..

A tax levied on certain goods. Duties are enforceable by law and are imposed on commodities or financial transactions.…..

EAN is a European barcode standard (originally European Article Number) now renamed International Article Number. It is a 13-digit (12 digit and 1 che…..

Estimated Landed Cost is an estimated total cost of a product once it has arrived at the buyer?s door. This list of components that are needed to dete…..

Date and time at which an air or ship journey is expected to arrive at named city or port. Also called expected time of arrival.…..

Data and time at which an air or ship journey is expected to depart from a named city or port. Also called expected time of departure.…..

The European Union (EU) is the result of a process of cooperation and integration of 28 member countries including Austria, Belgium, Bulgaria, Croatia…..

Cost of Sales = $36,000,000. Average Inventory = $6,000,000. $36,000,000 / $6,000,000 = 6 Inventory Turns…..

A factory (previously manufactory), usually consisting of buildings and machinery, where workers manufacture goods or operate machines to create produ…..

Factory audit is the last step in the process of selecting a supplier from the potential candidates after a screening process. Its objective is to con…..

Full Container Load (FCL) refers to a cargo where the entire container is full with one shipper/customer?s cargo.…..

1 If the price is based on FOB (Free on Board), it means the seller is responsible for the cost of the goods and its delivery charges all the way to t…..

Conversion rate of one currency into another. This FX rate depends on the local demand for foreign currencies and their local supply, country?s trade …..

A freight forwarder, forwarder, or forwarding agent, also known as a non-vessel operating common carrier (NVOCC), is a person or company that organize…..

The transport of goods in bulk by truck, train, ship or aircraft.…..

Freight containers are a reusable transport and storage unit for moving products and raw materials between locations or countries. There are about twe…..

Treaty (such as AGOA or NAFTA) between two or more countries to establish a free trade area where commerce in goods and services can be conducted acro…..

Global Trade Item Number (GTIN) is an identifier for trade items developed by GS1 (comprising among others, the former EAN International and Uniform C…..

The difference between revenue and the cost of producing goods or services sold. It is expressed both as a number and as a percentage.…..

GSD refers to General Sewing Data. GSD Corporate Ltd is a UK company based in the North of England, traditionally the heartland of the UK garment and …..

Generalized System of Preferences (GSP) is a scheme whereby a wide range of industrial and agricultural products originating in certain developing cou…..

Hedging is a way for a company to minimize or eliminate foreign exchange risk. Two common hedges are forward contracts and options. A forward contract…..

The Higg Index is an apparel and footwear industry self-assessment standard for assessing environmental and social sustainability throughout the suppl…..

High Point Shoulder…..

A list of imported goods and the duty rates that apply to them, published by the United States International Trade Commission. The Harmonized Tariff S…..

An initial markup unit is the amount of money, expressed as a percentage of initial cost that a retailer adds to the price of goods. For example, a re…..

Incoterms are a set of rules which define the responsibilities of sellers and buyers for the delivery of goods under sales contracts. They are publish…..

Indirect Labor includes the cost incurred on managers, line supervisors, mechanics and office staff which is not attributable to a specific style or g…..

In-line product inspection or DUPRO (During Production Inspection) is an effective way for buyers to find out the exact status of the manufacturing of…..

A document that certifies that merchandise was in good condition before shipment. An inspection certificate is often issued so payment can be complete…..

The number of times that your inventory cycles or turns over per year. It is one of the most commonly used Supply Chain Metrics.…..

A nonnegotiable commercial instrument issued by a seller to a buyer. It identifies both the trading parties, quantifies the items sold, shows the date…..

Just-in-Time (JIT) is an inbound manufacturing strategy that regulates material flow into assembly and manufacturing plants. JIT minimizes inventory i…..

A measure which is of strategic importance to a company or department. For example, a supply chain flexibility metric is Supplier On-time Delivery Per…..

An international business document that assures the seller that payment will be made by the bank issuing the letter of credit upon fulfillment of the …..

Loose Container Load (LCL) refers to a cargo load where one shipper?s/customer?s cargo is not sufficient to fill up a container. The consolidator will…..

Landed Duty Paid (LDP) is the same as DDP (Delivery Duty Paid). LDP is a term often used by US buyers.…..

A lead time is the latency between the initiation and execution of a process. For example, the lead time between the placement of an order and deliver…..

It is the minimum order size accepted by a supplier. Generally, this is based on the minimum order the supplier needs in order for the transaction to …..

Methods-Time Measurement (MTM) is the most established of all Predetermined Motion-Time Systems (PMTS). The system was born in the USA and since its p…..

Methods-Time Measurement-1 (MTM-1) is a procedure which analyses manual operations into the Basic Motions required to perform it, and assigns to each …..

The MTM-2 (Methods-Time Measurement-2) was developed by constructing motion combinations from basic motions of MTM-1. It has a smaller number of dista…..

Multi-channel retailing is the use of a variety of channels in a customer?s shopping experience including research before a purchase. Such channels in…..

The North American Free Trade Agreement (NAFTA) entered into effect for Canada and Mexico on January 1, 1994. All qualifying goods enter the US duty-f…..

Is a term used to describe a business placing orders with production locations close to where its end-products are sold. This is the opposite of the f…..

The rebranding of products and selling it under another name, or as a component of another product. OEM refers to the company that made the products (…..

Omni-Channel Retailing is the evolution of multi-channel retailing, but is concentrated more on a seamless approach to the consumer experience through…..

A metric used to assess the ability of a vendor to fulfil shipping orders or other transactions within the period of time promised to a client or cust…..

“A technique familiar to buyers who ?require? their suppliers to indicate the breakdown of costs. Aggressive buyers use this as a means driving cost d…..

An order to make full or complete again by supplying what has been sold out/used up or is lacking.…..

Location where a shipment begins its movement.…..

Original Design Manufacturing is a company that designs and manufactures a product as specified and eventually rebranded by another firm for sale. Suc…..

An open-to-buy plan is a financial budget for retail merchandise that helps you build a plan and figure out how much quantities you need to buy on a m…..

OTIF (On-Time In-Full) or DIFOT (Delivered In-Full, On-Time) is a measurement of delivery performance in a supply chain. Some consider it superior to …..

Overheads are the fixed costs incurred in running the factory in terms of manufacturing and, in the case of the buyer, the costs of running retail ope…..

Packaging is mostly done by factory owner who have to send products in bulk. Packaging refers to placing inside individual products into a carton usin…..

Inner packaging means a packaging for which an outer packaging is required for transport. Outer packaging means the outermost enclosure of a composite…..

Packing refers to wrapping up of a single item so that it arrives in the market in new condition. E.g. goods on hanger, box pack, polybag etc.…..

Piece of equipment that facilitates mechanical handling of stacked (palletized) goods for fork-lift trucks. Made usually of rough (undressed) wood and…..

In sewing, a pattern is the template from which the parts of a garment are traced onto fabric before being cut out and assembled.…..

The conditions under which a seller will complete a sale. Typically, these terms specify the period allowed to a buyer to pay off the amount due, and …..

The definition of a perfect order is one which meets all of the following criteria: * Delivered complete, with all items on the order in the quantity …..

POM codes are used to specify the measuring points of a garment or product. This is used as part of the Technical Specification. Some codes are used b…..

The port where cargo is offloaded from a vessel.…..

The port where cargo is loaded aboard the vessel.…..

A package assembled by a manufacturer, distributor, or retailer in a pre-defined instruction containing a specific number of items or a specific assor…..

Is the term that is given to the first few pieces created prior to the full production run.…..

An estimated invoice sent by a seller to a buyer in advance of a shipment or delivery of goods. It notes the kind and quantity of goods, their value, …..

A product line is a group of products that a company creates under one brand and are all related to certain attributes such as function, physical appe…..

The range of products is a complete portfolio of products that a company manufactures with different variations to appeal to different market segments…..

Important quality control method for checking the quality of goods clients buy from suppliers. Final Random Inspection (FRI) ensures that production c…..

A document that authorizes a purchase transaction. When accepted by the seller, it becomes a contract binding on both parties. A purchase order sets f…..

In developing products, quality assurance is any systematic process of checking to see whether a product being developed is meeting specified requirem…..

There are a range samples in the process in the merchandise lifecycle. These include: The Initial Sample Report is designed for the documentation of i…..

The quality management function that attempts to ensure that products manufactured meet the product specifications.…..

A ratio pack is referring to a pack containing multiple sizes under a single style-color. This is sometimes referred to as a multiple-SKU pack. E.g. f…..

Supplier who provides Raw Materials which is basic substance in its natural, modified, or semi-processed state, used as an input to a production proce…..

REACH (Regulation on Registration, Evaluation, Authorization and Restriction of Chemicals) entered into force on 1st June 2007. The main aims of REACH…..

Return of a portion of a purchase price by a seller to a buyer, usually on purchase of a specified quantity, or value, of goods within a specified per…..

The shipment release in the ocean transport means to convey the rights to the shipment to the indicated buyer.…..

A business that sells goods to the consumer, as opposed to a wholesaler or supplier, who normally sell their goods to another business.…..

Document used in soliciting price and delivery quotations that meet minimum quality specifications for a specific quantity of specific goods. RFQ are …..

The inventory a company holds above normal needs as a buffer against delays in receipt of supply or changes in customer demand.…..

Standard Allowed Hour, a term interchangeable with SAM (Standard Allowed Minute) except that it is calculated in hours. Refer to SMV (Standard Minute …..

Sales and Operations Planning (S&OP): A strategic planning process that reconciles conflicting business objectives and plans future supply chain actio…..

A seller team generated document that authorizes sale of the specified item(s), issued after receipt of a customer?s purchase order.…..

Standard Allowed Minute (SAM) is a term interchangeable with SMV (Standard Minute Value). Refer to SMV.…..

SAM (Standard Allowed Minute) is the time in minutes that it takes a worker to complete a specific operation or to produce a specific garment. It shou…..

Merchandise not for resale but used as a, a guide for development, sales tool (sales sample) or manufacturing (first or counter sample), or as an exam…..

A system to control the dispatching and receiving of inventory from factory or the warehouse.…..

A performance measurement tool used to capture a summary of the key performance indicators (KPIs) or metrics of a company. Metrics should be easy to r…..

Periodic, repetitive, and generally regular and predictable pattern in the levels of business activity where most or all sales originate in a particul…..

An important component of a total quality management system that assures that a supplier?s product is produced, packaged, and shipped under a controll…..

An 18-character identification number used to identify containers including pallets and boxes primarily for containers which are a part of a shipment …..

Ship-via codes may be assigned to individual customers and customer ship-to addresses to indicate the preferred method of shipping.…..

Arrangements with a carrier, often a steamship or airline, for the acceptance and carriage of passengers or freight.…..

A document used by a business to specify what items are to be transferred from a location or warehouse to what person or company and to what new locat…..

The party that tenders goods for transportation.…..

A document which is typically presented to the carrier outlining the individual shipping orders included in a shipment. The manifest will show the ref…..

A short shipment is when cargo is listed on purchase order is not included in a shipment, or not received by the recipient. Notably, when the quantity…..

A room used to display goods or merchandise for buyers consideration during development and selection…..

SMV (Standard Minute Value) is the time in minutes that it takes a worker to complete a specific operation or to produce a specific garment. It should…..

The length of time it takes to develop a new product from an early initial idea for a new product to initial market sales. Precise definitions of the …..

“Large shipment broken into two or more shipments and sent either on the same vessel or separately. It usually occurs when a customer order contains m…..

Reference to a specific style, color, size by season or delivery. SKUs are used in planning, budgets, tracking, merchandising and retailing usually in…..

An individual or an organization who supplies goods or services to the company. This is also sometimes referred to as a vendor.…..

A Key indicator of On-Time Product Deliveries, in terms of whether the lead times are being met and product is reaching the market at the right time. …..

Supply Chain Management is the movement of materials, funds and related information through the full logistics process, from the acquisition of raw ma…..

Corporate sustainability refers to efforts a company makes related to conducting business in a socially and environmentally responsible manner. It inc…..

General and special arrangements, provisions, requirements, rules, specifications, and standards that form an integral part of an agreement or contrac…..

A techpack is an information sheet which encompasses all the specifications of the requirements before embarking on the manufacturing process. It cont…..

A rule instituted by the United States Customs and Border Protections (US CBP). 10+2 requires cargo information, for security purposes, to be transmit…..

A Third-Party Logistics Provider is a firm that provides service to its customers of outsourced (or ?third party?) logistics services for part, or all…..

The Time and Action calendar is an important tool for managing a project and order. From order receiving to order completion involves a number of task…..

The time interval between product concept development and introduction to the marketplace. It includes specification development, product development …..

Total Measure…..

A measure that sums all costs associated with poor quality or product failure, including rework, scrap, warranty costs and other costs incurred in pre…..

Tariff Preference Limits TPLs) are defined in the Free Trade agreements to determine under what conditions goods are eligible for duty-free import.…..

The Trans-Pacific Partnership (TPP), also called the Trans-Pacific Partnership Agreement, is a defunct proposed trade agreement between Australia, Bru…..

The ability to track the location of a shipment as it moves through the shipping process to the customer. Or the ability to determine the source of in…..

Trade finance signifies financing for trade, and it concerns both domestic and international trade transactions. A trade transaction requires a seller…..

Standard unit for counting containers of various capacities and for describing the capacities of container ships or terminals. One 20 Foot ISO contain…..

“A standard product numbering and bar-coding system used by the retail industry. UPC codes are administered by the Uniform Code Council; they identify…..

A value chain is the full range of activities ? including design, production, marketing and distribution ? businesses go through to bring a product or…..

A vendor, or a supplier, is a supply chain management term that means anyone who provides goods or services to a company or individuals. Vendors are o…..

In the VMI process, the vendor assumes responsibility for managing the replenishment of stock. Rather than a customer submitting orders, the vendor wi…..

Vertical integration is an arrangement in which the supply chain of a company is owned by that company. Usually each member of the supply chain produc…..

“The volumetric weight of a shipment is a calculation that reflects the density of a package. A less dense item generally occupies more volume of spac…..

A Waybill is a document issued by a carrier giving details and instructions relating to the shipment of a consignment of goods. Typically, it will sho…..

Garments can undergo both wet and dry finishing processes to achieve the desired hand feel and look in the end product. An example of a dry process is…..

Material that has entered the production process but is not yet a finished product. Work in progress (WIP) therefore refers to all materials and partl…..

Yardage Yield (YY) refers to the total marker area of the placed pattern pieces including the area not utilised (fabric wastage). The number of yards …..

A system in which a company keeps no or very little inventory in storage, simply ordering exactly what it needs to sell and receiving it in a timely m…..