Supply Chain Logistics Glossary
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LAST IN FIRST OUT (LIFO)
Accounting method of valuing stock issues by first extracting the articles last entered into inventory. This leads to creation of fictitious individual lots on the product file, and to lower issue costs and therefore a decrease of reported profits.
LEAD TIME
Quantitative indicator measuring the time difference between stimulus and response. This indicator can be applied to different levels of the logistics process, for example to measure the actual time taken between the placing of an order and the delivery of a product.
LOGISTICS CHAIN EVENT MANAGEMENT (SCEM)
Management approach based on considering events that trigger, interrupt, suspend, or modify the movement of flows. It is based on a computer application, developed by the American firm, AMR Research, to direct, alert, simulate, track and measure activities making up the Logistics Chain. This system assumes data integration and process synchronization among the set of applications used to manage the Logistics Chain (SCE and SCP).
LOGISTICS CHAIN MANAGEMENT
Series of interdependent companies (considered as links of the chain) collaborating to carry out activities (procurement, production and distribution) for the movement of products or services from product development to end of life (after-sales service and withdrawal logistics).
LOGISTICS COSTS
Set of charges related to the product Carrying Costs, Storage Costs and Product Movement Costs.
LOGISTICS DASHBOARD
Dynamic management tool, quickly drawn up, showing a series of quantitative (financial and non-financial) and qualitative indicators, allowing a logistics manager to track and validate the key points they wish to control and, if necessary, to take short-term corrective actions.
LOGISTICS FUNCTION
Organizational entity in charge of all or part of the planning and/or implementation of the logistics-related activities.
LOGISTICS SERVICE PROVIDER
Company performing logistics activities on behalf of a manufacturer or distributor. Depending on the complexity and the type of value-added operations carried out by the Logistics Service Provider, several categories can be defined:
- The traditional Logistics Service Providers who carry out physical logistics operations (transport and storage) and whose management system is limited to tracking shipments on behalf of the client company;
- The value-added Logistics Service Providers who add a certain number of services to the traditional package ranging from managing complex operational handling (co-manufacturing and co-packing), to management of administrative operations (billing and ordering) and information management (tracking-tracing, etc.);
Compliments of: www.logixsource.com Page 9
Source: www.logistics-mag.com - Logistics services integrators characterized by the quasi-absence of their own physical facilities. Their role is to integrate the services of different sub-contracting companies (transport, storage, value-added operations, etc.) and to coordinate and control them through management of the associated information flows. There are other names for these three categories. The first and the second are frequently referred to as Third Party Logistics (3PL). The third corresponds to the terminology submitted by Accenture of Fourth Party Logistics (4PL). Finally, even though uncommon and very close to 4PL, the name of Fifth Party Logistics (5PL) is attributed to Logistics Service Providers who plan, organize and implement logistics solutions on behalf of a contracting party (in particular, information systems) by exploiting the appropriate technologies (conceptual level).
LOGISTICS SERVICE RATIO
Performance indicator for logistics processes or activities giving the degree of success in meeting the set logistics objectives. The logistics service ratio is usually calculated on the basis of the number of orders (sometimes on the percentage of sales) that met customer or end-consumer expectations within the allowed time, out of the total number of orders made.
