Supply Chain Logistics Glossary
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ORDER PENETRATION POINT
Identification of the time and place in the Logistics Chain when goods in movement are assigned to a particular customer. This order penetration point can be located at the production or distribution level and can represent the meeting point between the manufacturer's push system and the customer's pull system.
ORDER POINT
Stock level that triggers a replenishment order. This stock level considers the forecast stock usage during the replenishment lead time, plus Safety Stock.
ORDER POINT METHOD
Replenishment policy with variable date and set quantity, based on defining the stock level (Order Point) that triggers the order signal.
OUTSOURCING
Corporate decision to assign activities previously performed internally, to a third party (for example, a Logistics Service Provider). Initially, the shippers (manufacturing or commercial companies) outsourced transport, and then progressively did the same for more value-added logistics services (Co-Packing for example).
