Supply Chain Logistics Glossary
D
DATAMINING
Computer application that automatically structures analyzes and interprets data stored in the Data Warehouse to provide value-added information that supports the company's decision-making process.
DATA WAREHOUSING
Computer system for integrated storage of overall management data with miscellaneous formats and origins and usually including a Datamining application for interpretation.
DATE-MANAGED INVENTORY
Replenishment policy based on fixed quantities at fixed dates: the quantities delivered can be close to the Economic Order Quantity or correspond to a partial delivery of an annual contract.
DIRECT LOGISTICS FLOW
Pull management model in which the quantities produced correspond a close as possible to market demand. Just-in-time is a hyper-direct logistics flow management model.
DIRECT PRODUCT PROFITABILITY
Method developed initially (in the 60's) for grocery products to estimate the cost of moving a product through the different links of the Logistics Chain. The Direct Product Profitability is an evaluation of each product's contribution to profitability. The per-unit gross margin is reduced by the cost of handling, storage, transport and labour directly attributable to the product.
DISTRIBUTION CHANNEL
Series of companies involved sequentially in the movement of products or services from the producer to the end customer. A distinction is generally made between the information channel concerned with commercial transactions between the partners and the logistics channel related to physical operations.
DISTRIBUTION LOGISTICS
Set of activities with the goal of making available the desired items and quantities of finished goods to the customer and/or end consumer at the desired time (information contained in the FRP) at the best pricing terms. This process involves the definition of a distribution policy (inventory management method for finished goods, delivery cycle time, management of inbound transport, subcontracting to Logistics Service Providers, etc.).
DISTRIBUTION RESOURCE PLANNING (DRP)
Method of calculating the item quantities to be procured, for a given distribution network and period, (through demand forecasting), and of defining, on this basis, the necessary logistics and financial resources.
