Categories: Supply Chain
Ghost inventory describes goods that an inventory accounting system considers to be on-hand at a storage location, but are not actually available. This could be due to the items being moved without recording the change in the inventory accounting system, breakage, theft, data entry errors or deliberate fraud. The resulting discrepancy between the online inventory balance and physical availability can delay automated reordering and lead to out-of-stock incidents.
A third-party logistics provider or 3PL provides warehousing, transportation and fulfillment as a service. This includes arranging pick up and delivery of orders from manufacturers and trucking to a distribution center (DC) and all associated billing, scheduling, payment and warehousing services.
The supply chain operations reference model (SCOR) is a management tool used to address, improve, and communicate supply chain management decisions within a company and with suppliers and customers of a company. The model describes the business processes required to satisfy a customer’s demands. It also helps to explain the processes along the entire supply chain and provides a basis for how to improve those processes.
A regional fulfillment center is an industry term for a fulfillment center that typically serves a large geographic region. It supports logistics processes needed to get a product from the seller to the customer.
Most product is shipped to stores in full cases. This is the conventional way to replenish inventory. However, smaller stores or slower moving items might not need a full case. Thus cases are opened at the to facilitate individual item picking and shipment to the stores from the distribution center, fulfillment center or micro-fulfillment center in less than case levels.
A distribution center is a location between manufacturing and retail locations, where products are temporarily stored before delivery to multiple stores. It is typically hundreds of thousands of square feet. It is used to replenish inventory for the stores it serves.
Direct store delivery (DSD) describes a method of delivering product from a supplier/distributor directly to a retail store and, in some cases, including placement on the correct store shelf, thereby bypassing a retailer’s distribution center and eliminating a substantial amount of retailer labor cost.