03/11/2026
Cracks del Supply Chain, good morning, another day ! another challenge or learning lesson
Here are 25 key supply chain terms in simple language
Core Systems
SCM – Supply Chain Management: Managing the flow of goods, services, and information from suppliers to customers.
ERP – Enterprise Resource Planning: Integrated software connecting finance, procurement, inventory, HR, and operations.
WMS – Warehouse Management System: Software for managing warehouse activities like receiving, storage, and shipping.
TMS – Transportation Management System: Technology used to plan and optimize transportation.
Production & Planning
MRP – Material Requirements Planning: Calculates materials needed for production.
BOM – Bill of Materials: List of components required to manufacture a product.
SKU – Stock Keeping Unit: Unique identifier used to track inventory.
EOQ – Economic Order Quantity: Optimal order size that minimizes inventory costs.
JIT – Just-In-Time: Inventory received only when needed.
Logistics & Procurement
3PL – Third-Party Logistics: Outsourcing logistics services like warehousing and transport.
4PL – Fourth-Party Logistics: A partner managing the entire supply chain strategy.
RFQ – Request for Quotation: Request sent to suppliers for pricing.
PO – Purchase Order: Official document used to buy goods or services.
GRN – Goods Receipt Note: Confirms goods received from suppliers.
Inventory Management
FIFO – First In First Out: Oldest inventory used or sold first.
LIFO – Last In First Out: Newest inventory used or sold first.
ABC Analysis: Inventory classification by value and importance.
VMI – Vendor Managed Inventory: Supplier manages the buyer’s inventory levels.
Performance & Strategy
OTIF – On Time In Full: Measures delivery performance.
KPI – Key Performance Indicator: Metrics used to measure operational performance.
Cross Docking: Direct transfer from inbound to outbound transport.
Reverse Logistics: Managing product returns.
S&OP – Sales & Operations Planning: Aligns demand, supply, and business goals.
Lean: Focus on eliminating waste and improving efficiency.
Global Trade & Planning
Incoterms: International trade rules defining buyer and seller responsibilities.
Forecasting: Predicting future demand to plan production and inventory.
Supply chain is the backbone of global business.
Which of these terms do you use most in your work?