Retailing Management Chapter 10

Advance Shipping Notice (ASN)
A document that tells the distribution center what specifically is being shipped and when it will be delivered.
Backhaul
Return journey of a vehicle from its destination to its point of origin with nonpaying load (back load).
Break Pack Area
The area in a distribution center where employees open large cartons and distribute their contents into smaller packages for delivery to stores.
Bullwhip Effect
Occurs when distorted product demand information ripples from one partner to the next throughout the supply chain.
Checking
The process of going through goods upon receipt to make sure that they arrived undamaged and that the merchandise received matches the merchandise ordered.
Collaborative Planning, Forecasting, and Replenishment (CPFR)
The sharing of forecast and related business information and collaborative planning between retailers and vendors to improve supply chain efficiency and product replenishment.
Consignment
Part of a VMI (vendor managed inventory) program whereby the manufacturer owns the merchandise until it is sold by the retailer.
Cross-Docked
A distribution method whereby merchandise is unloaded from the shippers’ truck and within a few hours reloaded onto trucks going to stores. these items are prepackaged by the vendor for a specific store.
Direct Store Delivery (DSD)
Delivering merchandise to stores in which vendors distribute merchandise directly to the stores.
Dispatcher
The person who coordinates deliveries to distribution centers.
Distribution Center (DC)
A facility for the receipt, storage, and redistribution of goods to company stores or customers, may be operated by retailers, manufacturers, or distribution specialist.
Drop Shipping
Shipping directly from the supplier to the end consumer, rather than from the seller, saving both time and re-shipping cost.
Electronic Data Interchange (EDI)
The mutual exchange of data between provider and payer.
Fast Fashion
A strategy of constantly changing fashion to keep it fresh by basing the collections on the most recent fashion trends presented at Fashion Week and manufacturing it quickly in an affordable way to the mainstream consumer, allowing retailers to develop ways to create and officially manage a variety.
Floor-Ready Merchandise
Merchandise that is ready to be placed on the selling floor immediately.
Freight Forwarders
Organizations that consolidate shipments from several firms into efficient lot sizes.
Logistics
Part of the supply chain process that plans, implements, and controls the efficient, effective flow and storage of goods, services, and related information from the point of origin to the point of consumption to meet customers’ requirements.
Outsource
To use outside suppliers and manufacturers to produce goods and services.
Pack Verification
A check of the contents of a carton, usually just before sealing it.
Pick Ticket
A document or display on a screen in a forklift truck indicating how much of each item to get from specific storage areas.
Point-of-Sale (POS) Terminal
A computer used to collect, store, and report all the information of a sales transaction.
Public Warehouse
Independently owned and operated warehouse that stores goods for many firms.
Pull Supply Chain
Strategy in which orders for merchandise are generated at the store level on the basis of demand data captured by point-of-sales terminals.
Push Supply Chain
Strategy in which merchandise is allocated to stores on the basis of historical demand, the inventory position at the distribution center, and the stores’ needs.
Radio Frequency Identification (RFID)
Tags containing minuscule microchips that transmit information via radio waves and can be used to track the number and location of the objects into which the tags have been inserted.
Rain Check
A ticket stub allowing attendance at a later time. A piece of paper at a store to vuy a sold out item at a later time.
Receiving
The process of filling out paperwork to record the receipt of merchandise that arrives at a store or distribution center.
Reorder point
When the quantity on hand of an item drops to this amount, the item is reordered.
Reverse Logistics
A complete supply chain dedicated to the reverse flow of products and materials for the purpose of returns, repair, remanufacture, and/or recycling.
Security Policy
A document or series of documents that clearly defines the defense mechanisms an organization will employ to keep information secure.
Ship Verification
A check of the contents of a carton, usually as cartons are being loaded on a pallet or truck.
Stockout
An event that occurs when no inventory is available.
Supply Chain Management
Involves the management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability.
Ticketing and Marketing
Creating price and identification labels and placing them on the merchandise.
Universal Product Code (UPC)
A combination barcode and number used to identify a product and manufacturer.
Vendor-Managed Inventory (VMI)
An approach for improving supply chain efficiency in which the manufacturer is responsible for maintaining the retailer’s inventory levels in each of its stores.