Global SC Elements
Key Functions
Modes of Trans
Viability & Profitability
Cost Effectiveness
100

This entity acts as the "fountainhead" and ultimate driving force behind all logistics activities.

Who is the customer?

100

Because this critical function is the first physical step in warehouse operations, any errors made here will cascade throughout the rest of the material handling chain.

What is receiving?

100

These are used within the supply chain network to physically move inventory between facilities along a particular mode of transportation.

What are transportation lanes?

100

This customer service standard measures the total elapsed time from when an order is received from a customer until it is delivered.

What is order cycle time?

100

This rapid process involves transferring items directly from incoming to outgoing vehicles with little or no storage or staging time in between.

What is cross-docking?

200

 In terms of materials, this is defined as a network of connected facilities, transportation lanes, and information systems.

What is the supply chain?

200

This is defined as the practice of assembling products from various locations in a warehouse or distribution center for a specific customer order.

What is order processing?

200

These are the five basic modes into which physical transportation carriers are divided.

What are truck, air, rail, water, and pipeline?

200

This famous logistics analogy emphasizes the mutual dependence of each organization at every stage in the supply chain network.

What is "a chain is only as strong as its weakest link"?

200

To remain competitive, supply chain companies continuously measure performance at each stage to determine its direct impact on these two core areas

What are cost and performance?

300

These facilities in the supply chain network are responsible for extracting basic raw resources from the earth, such as mines and farms.

What are raw material providers?

300

This is the main function of the shipping department, which requires great skill and experience to ensure the product reaches the customer in good condition.

What is loading?

300

This critical function physically connects the sources of supply with customers, striving to deliver goods via the safest and most cost-effective means.

What is transportation?

300

According to a 2021 job satisfaction survey, this factor was chosen by 57% of logistics readers as their top source of satisfaction.

What is a feeling of accomplishment?

300

This operational philosophy, widely accepted alongside cross-docking, focuses on reducing inventory carrying costs by closely aligning parts replenishment with production needs.

What is just-in-time (JIT)?

400

In Apple's global network, these are the two specific iPhone components manufactured in Japan.

What are the camera and the glass?

400

This legal contract between the shipper and the carrier serves as official proof that the carrier has received the freight in good condition and is responsible for its delivery.

What is a bill of lading (BOL)?

400

To protect shipments during transit, pallets and other large containers are often wrapped in this material in the packaging area.

What is stretch wrap?

400

These specific expenses—including lease costs, utilities, insurance, waste, and loss—must be included in the valuation of materials because they directly impact overall business viability.

What are inventory carrying costs?

400

This specific standard represents the main productivity measure used to evaluate the efficiency of the logistics workforce.

What is efficiency at order fulfillment?

500

This is the specific term for inventory consisting of materials that are currently being processed on an assembly or production line.

What is Work-in-Process (WIP)?

500

This specific field is defined as the movement, storage, control, and protection of materials and products throughout their manufacture, distribution, consumption, and disposal.

What is material handling logistics?

500

These expenses are rising due to longer distances, higher fuel prices, greater demand, limited port facilities, and carrier mergers.

What are transportation costs?

500

This global trend focuses on extending product life by recycling, reusing, or recovering materials after their use by a consumer.

What is sustainability?

500

This cost of doing business is calculated into inventory carrying costs to account for theft, general material shrinkage, and damage

What is pilfering and material shrinkage (or loss)?