Term

Acronym

Definition

Category

A group of products that satisfy a consumer need. Categories can be viewed in other ways to products, such as by where they are consumed or occasions that they are purchased for.
 

Co-Managed Inventory

CMI

Retailers and manufacturers work together to reduce the level of stock holding and to improve the availability of products in the supply chain. Sales forecasts and promotional plans are shared and discussed so that the precise amount of stocks is available at the RDC.
 

Cross Docking

A system where products for store orders are not put away into the warehouse racking to be picked later, but they are processed into store orders either by the supplier or on arrival at the RDC. This can entail breaking down the inward delivery into store ready consignments or if the consignments are pallet sized moving the pallets across the docking area for loading onto the store delivery vehicle. This movement of product across warehouse vehicle docking bays gives the process its name.
 

Distribution centre

DC

A warehouse that is the sole stocking point for the distribution system that it services.
 

Direct Store Delivery

DSD

Manufacturers or distributors deliver store merchandise direct to retail outlets without going via a centralised distribution warehouse. This type of delivery is common practice across many retail markets and is widespread for bread, milk, news & magazines, home entertainment and clothing ranges.
 

Display Ready Packaging

DRP

Standalone units that are moved into retail floor space, rather than onto a shelf. Examples are promotional shippers and merchandising units, as well as fresh produce mobile tray-racks.
 

Efficient Consumer Response

ECR

An initiative within the food & grocery industry based around retailers and suppliers working together to fulfil consumer wishes, better, faster and at less cost. Visit ECR UK
 

Electronic Data Interchange

EDI

The computer to computer transmission of information between two trading partners in the supply chain. The data is usually organised in specific standards and formats for ease of transmissions and validation.
 

Electronic Point of Sale
 

EPOS

The method of recording store sales by scanning product bar codes at the stores’ tills.
 

Gondola End

The in-store selling space that is located at the end of an aisle. Due to the increased consumer flow around gondola ends, they are often used for promotional or new product merchandising.
 

Key Performance Indicator

KPI

A series financial and non-financial of measures to monitor performance of an operation of a company or part of a company. An example would be delivery service defined as 'cases ordered vs. cases delivered.'
 

Lead Time

The time between when new stock is ordered and when it is received and available for use. Lead time varies, depending on the system, speed of deliveries, availability and reliability of transport, and, sometimes, weather.
 

Master Schedule Attainment
 

MSA

Factory performance against plan.
 

Merchandising / Merchandised / Merchandisable Unit
 

MU

A method of transferring goods from supplier to store, minimising handling at each stage. Used on fast moving goods such as soft drinks.
 

Out of Stock

OOS

A term used to refer to a situation where no stock was available to fill a request from a customer or production order during a pick operation. Stock outs can be costly, including the profit lost for not having the item available for sale, lost goodwill, substitutions.
 

On-shelf Availability

OSA

Ensuring product availability at the retailer shelf, not just in the store.
 

Planogram

A visual description, diagram or drawing of a store's layout to include placement of particular products and product categories. The planogram will differ depending on the store format and size.
 

Point of Sale

PoS

This can have two meanings. The most literal is its use as reference to the physical location where a product or service is displayed for sale (e.g. shelf, gondola end. checkout). Secondly PoS is used in reference to communication material (e.g. of promotional offers) that is displayed at the point of sale.
 

Radio Frequency

RF

Technology used to support scanning / picking of product at Distribution Centres.
 

Roll Cage

The lightweight metal cages on wheels that are a commonly used way of picking and moving store orders through distribution centres to delivery at stores.
 

Retail Ready Packaging

RRP

A term used to refer to a product that comes ready merchandised and can be put onto the shelf. It also meets other needs such as easy to identify and easy to open. ECR and RRP
 

Shelf Edge Label

SEL

This is the label that appears on the edge of the store shelves providing product details such as price, size and description. It is used by store staff and shoppers to identify what is on the shelf.
 

Stock Keeping Unit

SKU

A uniquely identifiable line within a stores range. One product may have many different variations e.g. 20% extra free. Each of these variations is an individual stock keeping unit. Also called a ‘reference’.
 

Shelf Ready Packaging
 

SRP

Product that is ready-merchandised and is able to be replenished onto the shelf in one touch.
Stockless Codes Codes can be decided as stockless or stocked, depending on the speed with which they sell, the location from which they are sourced or many other factors besides. If a code is stockless it arrives from the supplier to retailer Dc and is not put away in racking on or the floor. It is automatically shipped out the other side of the warehouse to one of the retailer’s stores.  Download ECR Europe's guide to SRP here
 

Stockless Codes
 

Codes can be decided as stockless or stocked, depending on the speed with which they sell, the location from which they are sourced or many other factors besides. If a code is stockless it arrives from the supplier to retailer Dc and is not put away in racking on or the floor. It is automatically shipped out the other side of the warehouse to one of the retailer’s stores.
 

Supply Chain Implant (also known as a shared resource)
 

Supply Chain Employee seconded into an external organisation along the Supply Chain to share good business practices and learn efficiencies along the supply chain.
 

Vendor Managed Inventory

VMI

In VMI the Vendor (supplier) has responsibility for maintaining retail or RDC stock levels in the most cost effective manner appropriate to the agreed service standards.