CMM

A framework that describes the key elements of an effective software process, the Capability Maturity Model (CMM) is an evolutionary improvement path from an immature process to a mature, disciplined process. The CMM covers practices for planning, engineering, and managing software development and maintenance. When followed, these key practices improve the ability of organizations to meet goals for cost, schedule, functionality, and product quality.

CMMS

Software-based systems that analyze operating conditions of production equipment - vibration, oil analysis, heat, etc. - and equipment failure data, and apply that data to the scheduling of maintenance and repair inventory orders and routine maintenance functions. A CMMS prevents unscheduled machine downtime and optimizes a plant's ability to process products at optimum volumes and quality levels.

COA

A document, often required by an importer or governmental authorities, attesting to the quality or purity of commodities.

Coastal Carriers

Water carriers that provide service along coasts serving ports on the Atlantic or Pacific oceans or on the Gulf of Mexico.

Code

A numeric or alphanumeric representation of text is used for exchanging commonly used information. For example, commodity codes and carrier codes.

Co-Destiny

A concept that begins with the idea of long-term buyer-supplier relationships and assumes that organizations are uniquely, and in most cases, inextricably tied to their suppliers and customers.

Codifying

The process of establishing a new standard.

COGS

Cost of Goods Sold (COGS) is the sum of direct materials, direct labor, and allocated overhead associated with products sold during a specific period of time. This amount is determined in accordance with Generally Accepted Accounting Principles (GAAP).

Collaboration

Joint work and communication among people and systems – including business partners, suppliers, and customers – are necessary to achieve a common business goal.

Collaborative Planning, Forecasting and Replenishment (CPFR®)

A concept that aims to enhance supply chain integration by supporting and assisting joint practices, CPFR seeks cooperative management of inventory through joint visibility and replenishment of products throughout the supply chain. Information shared between suppliers and retailers aids in planning and satisfying customer demands through a supportive system of shared information. This allows for continuous updating of inventory and upcoming requirements, essentially making the end-to-end supply chain process more efficient. Efficiency is also created through the decrease in expenditures for merchandising, inventory, logistics, and transportation across all trading partners.

Collect Freight

Freight is payable to the carrier at the port of discharge or ultimate destination. The consignee does not pay the freight charge if the cargo does not arrive at the destination.

Co-Managed Inventory (CMI)

A form of continuous replenishment in which the manufacturer is responsible for the replenishment of standard merchandise, while the retailer manages the replenishment of promotional merchandise.

Combined Lead Time

The total time required to source components, build, and ship a product.

Commercial Invoice

A document created by the seller, it is an official document used to indicate, among other things, the name and address of the buyer and seller, the product(s) being shipped, and their value for customs, insurance, or other purposes.

Commercial Off-the-Shelf (COTS)

A computer software industry term, which describes software offered for sale by commercial developers, includes products from vendors such as SAP, Oracle, Microsoft, etc., as well as from smaller vendors.

Commercial Zone

The area surrounding a city or town to which rates quoted for the city or town also apply. The area is defined by the ICC.

Committed Capability

The level of operational capability, which is currently either part of a planned schedule or is in actual use.

Committee of American Steamship Lines

An industry association representing subsidized U.S. flag steamship firms.

Commodities Clause

A clause that prohibits railroads from hauling commodities that they produced, mined, owned, or had an interest in.

Commodity

An item that is traded in commerce, the term usually implies an undifferentiated product competing primarily on price and availability.

Commodity Buying

The practice of grouping like-purchased items into common groups, which are then managed by a single buyer/agent, assumes that an individual who is more focused on a range of products or services can perform that function better than someone who is a novice.

Commodity Code

A code describing a commodity or a group of commodities pertaining to goods classification. This code can be a carrier tariff or regulatory in nature.

Commodity Procurement Strategy

The practice of grouping like-purchased items into common groups, which are then managed by a single buyer/agent, assumes that an individual who is more focused on a range of products or services can perform that function better than someone who is a novice.

Commodity rate

A rate for a specific commodity and its origin-destination.

Common Carrier

Any carrier engaged in the interstate transportation of persons or property on a regular schedule at published rates, whose services are for hire to the general public.

Common Carrier Duties

Common carriers are required to serve, deliver, charge reasonable rates, and not discriminate.

Common Cost

A cost that cannot be directly assigned to particular segments of the business but is incurred for the business as a whole.

Communication Protocol

The method by which two computers coordinate their communications is called BISYNC and MNP are two examples.

Commuter

An exempt for-hire air carrier that publishes a timetable on specific routes is a special type of air taxi.

Company Culture

A concept that describes the psychology, attitudes, experiences, beliefs, and values (personal and cultural values) of an organization. The values and customs shared by people and groups in an organization govern how they interact with each other and with outside organizations.

Comparative Advantage

A principle based on the assumption that an area will specialize in the production of goods for which it has the greatest advantage or the least comparative disadvantage.

Competitive Advantage

Value created by a company for its customers that clearly distinguishes it from the competition and provides its customers with a reason to remain loyal.

Competitive Benchmarking

The practice of comparing and rating a company's products or services against those of competitors. Also, see Benchmarking.

Competitive Bid

A price/service offering by a supplier that must compete with offerings from other suppliers.

Competitive Differentiator

The ability to communicate what makes the company, product, or service unique and to stand out from other companies, products, or services within the marketplace.

Complete and On-Time Delivery (COTD)

A measure of customer service: all items on any given order must be delivered on time for the order to be considered complete and on time.

Complete Manufacture to Ship Time

The average time from when a unit is declared shippable by manufacturing until the unit actually ships to a customer is:

Compliance

Meaning that products, services, processes, and/or documents comply with requirements.

Compliance Checking

The function of electronic data interchange (EDI) processing software is to ensure that all transmissions contain the mandatory information demanded by the EDI standard. It compares information sent by an EDI user against EDI standards and reports any exceptions. However, it does not ensure that documents are complete and fully accurate. It only rejects transmissions that are missing data elements or that have syntax errors.

Compliance Monitoring

A check is done by the value-added network (VAN)/third-party network or the translation software to ensure that the data being exchanged is in the correct format for the standard being used.

Compliance Program

Method by which two or more EDI trading partners periodically report conformity to agreed-upon standards of control and audit. Management produces statements of compliance, which summarize any exceptions and corrective actions planned or taken in accordance with operating rules. Auditors produce an independent and objective statement of opinion on management statements.

Component

Material that will contribute to a finished product, but is not the finished product itself. Examples would include tires for an automobile, a power supply for a personal computer, or a zipper for a ski parka. Note that what is a component to the manufacturer may be considered the finished product of their supplier.

Computer-Aided Design (CAD)

Computer-based systems for product design may incorporate analytical and 'what if' capabilities to optimize product designs. Many CAD systems capture geometric and other product characteristics for engineering data management systems, producibility and cost analysis, and performance analysis.

Computer Aided Engineering (CAE)

The use of computers to model design options to stimulate their performance.

Computer-Aided Manufacturing (CAM)

Computerized systems in which manufacturing instructions are downloaded to automated equipment or operator workstations.

Computer-Aided Process Planning (CAPP)

Software-based systems that aid manufacturing engineers in creating a process plan to manufacture a product, whose geometric, electronic, and other characteristics have been captured in a CAD database. CAPP systems address such manufacturing criteria as target costs, target lead times, anticipated production volumes, and availability of resources, etc.

Computer-Based Training (CBT)

Training that is delivered via a computer workstation and includes all training and testing materials.

Computer-Integrated Manufacturing (CIM)

A variety of approaches exist in which computer systems communicate or interoperate over a local-area network. Typically, CIM systems link management functions with engineering, manufacturing, and support operations. In the factory, CIM systems may control the sequencing of production operations, operate automated equipment and conveyor systems, transmit manufacturing instructions, capture data at various stages of the manufacturing or assembly process, facilitate tracking and analysis of test results and operating parameters, or a combination of these.