Warehouse Dictionary

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D

Dashboard

A performance measurement tool used to capture a summary of the key performance indicators/metrics of a company. Metrics dashboards/scorecards should be easy to read and usually have red, yellow, green indicators to flag when the company is not meeting its metrics targets. Ideally, a dashboard/scoreboard should be cross functional in nature and include both financial and non-financial measures. In addition, scorecards should be reviewed regularly – at least on a monthly basis, and weekly in key functions such as manufacturing and distribution where activities are critical to the success of a company. The dashboards/scorecards philosophy can also be applied to external supply chain partners like suppliers to ensure that their objectives and practices align.

Data Dictionary

Lists the data elements for which standards exist. The Joint Electronic Document Interchange (JEDI) committee developed a data dictionary that is employed by many EDI users.

Data Mining

The process of studying data to search for previously unknown relationships. This knowledge is then applied to achieving specific business goals.

Data Synchronization

The data transfer process between a handheld device and a desktop computer.

Data Warehouse

A repository of data that has been specially prepared to support decision-making applications.

Date Code

A label on products with the date of production. In food industries, it’s often an integral part of the lot number.

Days of Supply

Measure of quantity of inventory on hand in relation to number of days for which usage will be covered. For example, if a component is consumed in manufacturing at the rate of 100 per day and there are 1,585 units available on hand, this represents 15.85 days’ supply.

DDP

Delivered Duty Paid. Relates to international delivery where the price quoted by a seller and/or paid by the customer for their order includes all of the relevant charges such as customs import fees, any taxes and/or duty charges. These fees / taxes / duties are to be paid for by the shipper of the order.

DDU

Delivered Duty Unpaid. Relates to international delivery where the quoted by a seller and/or paid by the customer does not include all charges, such as customs import fees, any taxes and/or duty charges. These fees / taxes / duties are to be paid for by the recipient of the shipment on delivery.

Deadweight Tons (DWT)

The cargo carrying capacity of a vessel, including fuel oil, stores and provisions.

Declaration of Dangerous Goods

To comply with the U.S. regulations, exporters are required to provide special notices to inland and ocean transport companies when goods are hazardous.

Declared Value for Carriage

The value of the goods, declared by the shipper on a bill of lading, for the purpose of determining a freight rate or the limit of the carrier’s liability.

Deconsolidator

An enterprise that provides services to un-group shipments, orders, goods, etc., to facilitate distribution.

Dedicated Contract Carriage

A third party service that dedicates equipment (vehicles) and drivers to a single customer for its exclusive use on a contractual basis.

Defective goods inventory (DGI)

Those items that have been returned, have been delivered damaged and have a freight claim outstanding, or have been damaged in some way during warehouse handling.

Delivery Appointment

The time agreed upon between two enterprises for goods or transportation equipment to arrive at a selected location.

Delivery Confirmation

An electronic message sent by the carrier to confirm that the shipment has been successfully delivered. Depending on the carrier service, this may be the final delivery status update message.

Delivery-Duty-Paid

Supplier/manufacturer arrangement in which suppliers are responsible for the transport of the goods they’ve produced, which are being sent to a manufacturer. This responsibility includes tasks such as ensuring that products get through Customs.

Delivery Order

A document issued by the customs broker to the ocean carrier as authority to release the cargo to the appropriate party.

Delivery Option

This is the choice of delivery that a customer may choose when placing an order.

Delivery Service

This term refers to the type of service that a retailer/shipper offers and might be agnostic to carrier/carrier service. A delivery usually relates to speed of delivery, timeslot for delivery or the type of delivery. For example, “standard”, “next day”, “pre 12pm” or “deliver to locker” are all examples of delivery service.

Demand Chain Management

The same as supply chain management, but with an emphasis on consumer pull versus supplier push.

Demand

the need for a specific item in a specific quantity.

Demand override

any adjustment that is used to supersede your demand history (usually for the purposes of forecasting or calculating safety stock). A demand override can be a fixed quantity that will be used to replace the actual demand, or it can be a factor that can be used to adjust the demand.

Demand Planning Systems

The systems that assist in the process of identifying, aggregating, and prioritizing all sources of demand for the integrated supply chain of a product of service at the appropriate level, horizon, and interval.

Demand Signal

A signal from a consumer, customer or using operation that triggers the issue of product or raw material.

Demand Supply Balancing

The process of identifying and measuring the gaps and imbalances between demand and resources in order to determine how to best resolve the variances through marketing, pricing, packaging, warehousing, outsource plans, or some other action that will optimize service, flexibility, costs, assets, (or other supply chain inconsistencies) in an iterative and collaborative environment.

Demand variability

changes in demand from period to period. Demand variability is the result of trend, seasonality, events, and noise.

Demurrage

The carrier charges and fees applied when rail freight cars and ships are retained beyond a specified loading or unloading time.

Deregulation

Revisions or complete elimination of economic regulations controlling transportation. The Motor Carrier Act of 1980 and the Staggers Act of 1980 revised the economic controls over motor carriers and railroads, and the Airline Deregulation Act of 1978 eliminated economic controls over air carriers.

Dispatch Confirmation

An electronic message sent by the warehouse to confirm that a specific parcel, package or shipment has successfully left the warehouse. A dispatch confirmation may contain the parcel tracking number.

Destination

The location designated as a receipt point for goods/shipment.

Destock

Reduce the amount of stock held

Devanning

The unloading of cargo from a container or other piece of equipment.

Differential

A discount offered by a carrier that faces a service time disadvantage over a route.

Direct Cost

A cost that can be directly traced to a cost object since a direct or repeatable cause-and-effect relationship exists. A direct cost uses a direct assignment or cost causal relationship to transfer costs.

Direct Product Profitability (DPP)

Calculation of the net profit contribution attributable to a specific product or product line.

Direct Production Material

Material that is used in the manufacturing/content of a product. (Example: purchased parts, solder, SMT glues, adhesives, mechanical parts, bill-of-materials parts, etc.)

Direct Retail Locations

A retail location that purchases products directly from your organization or responding entity.

Direct shipping

a procurement strategy that allows a company to sell product without ever stocking or even handling the product. When a customer places an order with a seller, the order is passed on to the seller’s supplier who will then ship the product directly to the customer.

Direct Store Delivery (DSD)

Process of shipping direct from a manufacturer’s plant or distribution center to the customer’s retail store, thus bypassing the customer’s distribution center.

Discrete Manufacturing

Discrete manufacturing processes create products by assembling unconnected distinct parts as in the production of distinct items such as automobiles, appliances, or computers.

Discrete picking

An order picking method where a single picker picks all of the items for a single order.

Distributed Inventory

Inventory that is geographically dispersed. For example, where a company maintains inventory in multiple distribution centers to provide a higher level of customer service.

Distribution

Outbound logistics, from the end of the production line to the end user. The activities associated with the movement of material, usually finished goods or service parts, from the manufacturer to the customer. These activities encompass the functions of transportation, warehousing, inventory control, material handling, order administration, site and location analysis, industrial packaging, data processing, and the communications network necessary for effective management. It includes all activities related to physical distribution, as well as the return of goods to the manufacturer. In many cases, this movement is made through one or more levels of field warehouses. The systematic division of a whole into discrete parts having distinctive characteristics.

Distribution Center (DC)

The warehouse facility which holds inventory from manufacturing pending distribution to the appropriate stores.

Distribution Channel

One or more companies or individuals who participate in the flow of goods and services from the manufacturer to the final user or consumer.

Distribution Channel Management

The organizational and pipeline strategy for getting products to customers. Direct channels involve company sales forces, facilities, and/or direct shipments to customers; indirect channels involve the use of wholesalers, distributors, and/or other parties to supply the products to customers. Many companies use both strategies, depending on markets and effectiveness.

Distribution inventory

distribution inventory is the result of a distribution network and the increases in inventory required to operate out of multiple distribution points. When you decide to have two or three or more strategically located distribution centers rather than a single centrally located distribution center, you will generally increase your overall inventory levels. The reason for this is you are now breaking up your demand among three locations. When demand is broken up (disaggregated) you will usually find greater variability in the demand at each location. This increase in variability results in increases in safety stock in order to meet desired service levels. This increase in safety stock is essentially your distribution inventory. Some practitioners consider all inventory in the distribution network to be distribution inventory. I disagree with that definition, since much of that inventory would exist regardless of the distribution network.

Distribution Planning

The planning activities associated with transportation, warehousing, inventory levels, materials handling, order administration, site and location planning, industrial packaging, data processing, and communications networks to support distribution.

Distribution Requirements Planning (DRP)

A system of determining demands for inventory at distribution centers and consolidating demand information in reverse as input to the production and materials system.

Distribution Resource Planning (DRP II)

The extension of distribution requirements planning into the planning of the key resources contained in a distribution system: warehouse space, workforce, money, trucks, freight cars, etc.

Distribution Warehouse

A finished goods warehouse from which a company assembles customer orders.

Distributor

A business that does not manufacture its own products, but purchases and resells these products. Such a business usually maintains a finished goods inventory. Synonym: Wholesaler.

Dock Receipt

A document used to accept materials or equipment at an ocean pier or accepted location. Provides the ocean carrier with verification of receipt and the delivering carrier with proof of delivery.

Dock-to-stock cycle measurement

measuring the amount of time it takes between the time something arrives at your dock, and the time it is in stock and available for sale or use.

Document

In EDI, a form, such as an invoice or purchase order, that trading partners have agreed to exchange and that the EDI software handles within its compliance-checking logic.

Domestic Trunk Line Carrier

A classification for air carriers that operate between major population centers. These carriers are now classified as major carriers.

Double-Pallet Jack

A mechanized device for transporting two standard pallets simultaneously.

Drayage

The service offered by a motor carrier for pick-up and delivery of ocean containers or rail containers. Drayage agents usually handle full-load containers for ocean and rail carriers.

Drayage Firms

Motor carriers that provide local pickup and delivery of trailers and containers (on chassis)

Driving Time Regulations

U.S. Department of Transportation rules that limit the maximum time a driver may drive in interstate commerce; the rules prescribe both daily and weekly maximums.

Drop

A situation in which an equipment operator deposits a trailer or boxcar at a facility at which it is to be loaded or unloaded.

Drop Ship

To take the title of the products but not actually handle, stock, or deliver it, e.g., to have one supplier ship directly to another or to have a supplier ship directly to the buyer’s customer.

Dual Operation

A motor carrier that has both common and contract carrier operating authority.

Dual rate system

An international water carrier pricing system in which a shipper signing an exclusive use agreement with the conference pays a rate 10 to 15 percent lower than non-signing shippers do for an identical shipment.

Dumping

When a product is sold below cost in a foreign market and/or when a product is sold at a lower price in the foreign market than in a domestic market, with the intention of driving out competition in the foreign market.

Dunnage

The packing material used to protect a product from damage during transport.

DUNS Number

A coded, numerical representation assigned to a specific company (USA).

Duty Free Zone (DFZ)

An area where goods or cargo can be stored without paying import customs duties while awaiting manufacturing or future transport.