Buffer

The level of merchandise/goods to be stocked is needed to accommodate regular sales orders.

Buffer Management

A technique used in the theory of constraints (TOC)-based management systems to overcome shortages and idle constraints.

Bulk Area

A storage area for large items, which are most efficiently handled by the pallet load, at a minimum.

Bulk Packing

The process or act of placing numbers of small cartons or boxes into a larger single box to aid in the movement of products and to prevent damage or pilferage to the smaller cartons or boxes.

Bulk Storage

The process of housing or storing materials and packages in larger quantities generally uses the original packaging, shipping containers, or boxes.

Bulletin Board

An electronic forum hosts posted messages and articles related to a common subject.

Bullwhip Effect

Also known as the 'Whiplash Effect', it is an observed phenomenon in forecast-driven distribution channels. The oscillating demand magnification upstream in a supply chain is reminiscent of a cracking whip. The concept has its roots in J Forrester's Industrial Dynamics (1961), and thus it is also known as the Forrester Effect.

Bundle

A group of products that are shipped together as an unassembled unit.

Bundling

An occurrence where two or more products are combined into one transaction for a single price.

Burn Rate

The rate of consumption of cash in a business, burn rate, is used to determine cash requirements on an ongoing basis. A burn rate of $50,000 would mean the company spends $50,000 a month above any incoming cash flow to sustain its business. Entrepreneurial companies will calculate their burn rate in order to understand how much time they have before they need to raise more money or show a positive cash flow.

Business Activity Monitoring (BAM)

A term which refers to capturing operational data in real-time or close to it, making it possible for an enterprise to react more quickly to events. This is typically done through software and includes features to provide alerts/notifications when specific events occur. See also: Supply Chain Event Management.

Business Application

Any computer program, set of programs, or package of programs created to solve a particular business problem or function.

Business Continuity Plan (BCP)

A defined operational plan, which is designed to be implemented in the event of a disruption of normal operations, is called a continuity plan. Disruptions may result from natural disasters, civil or labor unrest, etc. CSCMP provides suggestions for helping companies with continuity planning in their research on Securing the Supply Chain. A copy of the research is available on the CSCMP website.

Business Intelligence (BI)

The set of skills, technologies, applications, and practices used to help a business acquire a better understanding of its commercial context in order to make better business decisions.

Business Logistics

The systematic and coordinated set of activities required to provide the physical movement and storage of goods (raw materials, parts, finished goods) from vendor/supply services through company facilities to the customer (market), and the associated activities — packaging, order processing, etc. — in an efficient manner necessary to enable the organization to contribute to the explicit goals of the company.

Business Performance Measurement (BPM)

A technique that uses a system of goals and metrics to monitor performance. Analysis of these measurements can help businesses in periodically setting business goals and then providing feedback to managers on progress towards those goals. A specific measure can be compared to itself over time, compared with a preset target, or evaluated along with other measures.

Business Plan

A formal statement of a set of business goals, the reasons why they are believed to be attainable, and the plan for reaching those goals. It may also contain background information about the organization or team attempting to reach those goals.

Business Process Outsourcing (BPO)

The practice of outsourcing non-core internal functions to third parties typically includes logistics, accounts payable, accounts receivable, payroll, and human resources. Other areas that can be outsourced include IT development or complete management of the IT functions of the enterprise.

Business Process Reengineering (BPR)

The fundamental rethinking and oftentimes radical redesign of business processes are necessary to achieve dramatic organizational improvements.

Business Reviews (BRs)

A periodic assessment of the commercial context of a business includes its mission statement, goals, and strategic plan. Reviews are typically held each quarter and are attended by senior managers from functional areas of both supplier and customer organizations.

Business-to-Business (B2B)

As opposed to business-to-consumer (B2C), many companies are now focusing on this strategy, and their sites are aimed at businesses (think wholesale). Only other businesses can access or buy products on the site. Internet analysts predict that this will be the biggest sector on the Web.

Business-to-Consumer (B2C)

The hundreds of e-commerce websites that sell goods directly to consumers are considered B2C. This distinction is important when comparing websites that are B2B, as the entire business model, strategy, execution, and fulfillment are different.

Business Unit

A business unit is a part of an organization that is managed like a separate business, with its own profit and loss financial reporting. For example, in the General Motors group, Chevrolet is a business unit.

Buyer Behavior

The mannerisms inherent in how a business or individual act during the purchasing process.

Buying Cards (P-Cards)

Basically, these are a form of credit card used to make maintenance, repair, and operating (MRO) inventory-type purchases versus using a purchase order (PO) that can cost more to process for small purchases. Companies using these cards typically work with card issuers to develop guidelines for use—sometimes by value limits and type of expense—which provide control over authorized purchases at the point of sale.

Byte

A computer term used to define a string of 7 or 8 bits, or binary digits. The length of the string determines the amount of data that can be represented. The 8-bit byte can represent numerous special characters, 26 uppercase and lowercase alphabetic characters, and 10 numeric digits, totaling 256 possible combinations.