Supply Chain Management Overview

A network connecting a company and its suppliers to produce and distribute a product to the final buyer, encompassing activities, people, information, and resources.

A five-step process involving receiving inventory, storing it, processing orders, shipping, and handling returns.

A system that minimizes inventory by receiving raw materials only when needed. Also known as Toyota Production System (TPS).

First-In, First-Out; a method of valuing and selling inventory based on the order it was purchased.

Last-In, First-Out; a method of valuing inventory where the most recently purchased items are sold first.

The total cost of an item, including purchase price, shipping, customs, taxes, and other expenses.

A method of fulfilling customer orders for products temporarily out of stock, usually during high demand.

A shipping document that details goods, quantity, and destination, acting as proof of payment and signed by all parties involved.

Shipping goods directly from vendor to customer with minimal storage time.

Internationally recognized rules defining seller/buyer responsibilities in export transactions.

Seller's obligation fulfilled when goods are ready for pickup on their premises.

Seller delivers goods to designated carrier on seller's premises.

Seller transports goods to a specific location, paying the cost.

Seller pays for transport and minimum insurance to a specific location.

Seller delivers goods to a buyer's designated terminal, unloading them.

Seller delivers & unloads goods at the buyer's designated location.

Seller transports goods, clears import, and pays duties.

Seller delivers goods alongside the ship.

The network of companies and suppliers to produce and deliver a product to customers, including activities, people, and resources.

A process of receiving, storing, processing orders, shipping, and handling returns for products.

Producing goods only when needed, minimizing inventory holding costs.

First-In, First-Out inventory management; items purchased first, are sold first.

Last-In, First-Out inventory management; most recently purchased items are sold first.

The total cost of a product, including purchase price, shipping, taxes, and customs.

Fulfillment strategy of accepting orders for items temporarily out of stock.

A shipping document detailing goods, quantity, and destination. Acts as a proof of payment and is signed by all parties involved.

Shipping goods directly from a vendor to a customer with minimal storage.

Internationally recognized rules that outline responsibilities of sellers and buyers during exports.

The seller's responsibility ends when the goods are ready for pickup at their premises.

Seller delivers goods to a carrier specified by the buyer at the seller's location..

Seller delivers goods to a specified location, paying for the transport.

Seller pays for transport and minimum insurance to a specified location.

Seller delivers & unloads goods at a named terminal.

Seller delivers & unloads goods at a named destination.

Seller handles all transport, import clearance, and duties.

Seller delivers goods alongside the ship, buyer manages loading.