SmartWay Certification

A voluntary certification program that partners the freight industry sector with the EPA, focuses on recognition and incentives for fuel efficiency improvements, and greenhouse gas emissions reductions. Eligibility for the truck certification is based on a comprehensive set of fuel-saving, low-emission equipment specifications for new Class 8 long-haul tractors.

Sole Sourcing

When there is only one supplier for a product or service, and no alternate suppliers are available

Sortation

Separating items (parcels, boxes, cartons, parts, etc.) according to their intended destination within a plant or for transit.

Spam

A computer industry term refers to the act of sending identical and irrelevant postings to many different newsgroups or mailing lists. Usually, this posting is something that has nothing to do with the particular topic of a newsgroup or is of no real interest to the person on the mailing list.

SPC

Statistical Process Control

Special-Commodities Carrier

A common carrier trucking company has the authority to haul special commodities. There are 16 special commodities, including household goods, petroleum products, and hazardous materials.

Special-Commodity Warehouses

A warehouse is used to store products that require unique types of facilities, such as grain (elevator), liquid (tank), and tobacco (barn).

Special Economic Zone (SEZ)

A geographical region that has economic laws that are more liberal than a country's typical economic laws. The category 'SEZ' covers a broad range of more specific zone types, including Free Trade Zones (FTZ), Export Processing Zones (EPZ), Free Zones (FZ), Industrial Estates (IE), Free Ports, Urban Enterprise Zones, and others. Usually, the goal of an SEZ structure is to increase foreign investment.

Specific, Measurable, Achievable, Realistic, Time-Based (SMART)

A shorthand description of a way of setting goals and targets for individuals and teams.

SPG

Small Parcel Ground.

Splash Page

A 'first' or 'front' page that you often see on some websites usually contains a 'click-through' logo or message or a fancy Flash presentation, announcing that you have arrived. The main content and navigation on the site lies 'behind' this page (also known as the homepage or 'welcome page').

Split Case Order Picking

A process used to fulfill orders for quantities less than a full case, thereby requiring the ordered items to be picked from a case or some similar container.

Split Delivery

The act of creating a purchase order for a large volume of product in order to get a reduced price (price break) and then designating a spread of delivery dates to eliminate the need to pay for and stock the full quantity initially.

Spot

To move a trailer or boxcar into place for loading or unloading

Spot Demand

Unusual demand for a product with a corresponding short lead time is an example of this. This situation often occurs during a disaster when certain materials are immediately needed in larger than normal quantities.

Spur Track

A railroad track that connects a company's plant or warehouse with the railroad's track; the cost of the spur track and its maintenance is borne by the user.

SSCC

Serial Shipping Container Codes

SST

Smart and Secure Trade Lanes

Stable Demand

Products for which demand does not fluctuate widely at specific points during the year.

Stack Car

An intermodal flatcar is designed to place one container on top of another for better utilization and economics. It is also referred to as a well car because the cars are lowered in the center to allow clearance when moving under low-lying structures.

Staff Functions

The support activities of planning and analysis are provided to assist line managers with daily operations. Logistics staff functions include location analysis, system design, cost analysis, and planning.

Staging

The practice of picking materials for a production or sales order and moving them to a separate area for the purposes of consolidation or identifying shortages. Staging may also refer to the placement of equipment in preparation for being used. Also, see Accumulation Bin.

Stakeholders

An individual or group that will be impacted in some way by a change has an interest (positive or negative) in how a project, initiative, or transformation will resolve itself.

Standard Carrier Alpha Code (SCAC/SCAC Code)

A unique 2 to 4-letter code is assigned to transportation companies for identification purposes. SCAC codes are required for EDI and are printed on bills of lading and other transportation documents.

Standard Components

Components (parts) of a product, for which there is an abundance of suppliers, are not difficult to produce. An example would be a power cord for a computer.

Standard Cost Accounting System

A cost accounting system where the unit cost used is the predetermined cost of manufacturing a single unit or a number of product units during a specific period in the immediate future. It is the planned cost of a product under current and/or anticipated operating conditions.

Standard Deviation/Variance

Measures the dispersion for a probability distribution. The variance is the average squared difference of a distribution from the distribution's mean (average) value. The standard deviation is defined mathematically as the square root of the variance and is thereby expressed in the same units as the random variable that is described by the probability distribution. A distribution that varies widely about its mean value will have a larger standard deviation/variance than a distribution with less variation about its mean value.

Standard Industrial Classification (SIC)

A United States government system for classifying industries by a four-digit code was established in 1937. It is being supplanted by the six-digit North American Industry Classification System, which was released in 1997. However, certain government departments and agencies, such as the U.S. Securities and Exchange Commission (SEC), still use the SIC codes.

Standing Order

A blanket order is defined as an order that the customer makes with its supplier, which contains multiple delivery dates scheduled over a period of time, sometimes at predetermined prices. It is normally used when there is a recurring need for expendable goods. Hence, items are purchased under a single purchase order (PO) rather than processing a separate PO each time supplies are needed. Synonyms: Blanket Order, Standing Order.

Stand Up Fork Lift

A forklift where the operator stands rather than sits is called a stand-up forklift. This type of forklift is most commonly used in case picking operations, where the operator must get on and off the lift frequently.

Start Manufacture to Order Complete Manufacture

Average lead time from the time manufacturing begins to the time end products are ready for shipment includes the following sub-elements: order configuration verification, production scheduling, time to release order to manufacturing or distribution, and build or configure time (an element of Order Fulfillment Lead Time). Note: It is determined separately for Make-to-Order, Configure/Package-to-Order, and Engineer-to-Order products. It does not apply to Make-to-Stock products. Note: It is determined separately for Make-to-Order, Configure/Package-to-Order, and Engineer-to-Order products. It does not apply to Make-to-Stock products.

Statement of Objectives (SOO)

A document that expresses both technical and management requirements in the form of performance objectives. In these cases, the bidders are expected to prepare the Statement of Work in response to the SOO.

Statement of Work (SOW)

A document that captures and acknowledges mutual agreement on the work activities, deliverables, and timeline that a vendor will execute against in the performance of work for a customer. Detailed requirements and pricing are usually specified in a Statement of Work, along with various other terms and conditions.

Statistical Process Control (SPC)

A method for achieving quality control in processes, the technique hinges on the observation that any process is subject to seemingly random variations, which are said to have common causes, and non-random variations, which are said to have special causes. SPC relies on measuring variation in output and setting control limits based on observations of variations arising solely from common causes. A process that is 'in control' is expected to generate output that is within the control limits.

Steamship Conferences

Collective rate-making bodies for liner water carriers.

Stevedores

Labor management companies provide equipment and hire workers to transfer containers and cargo between ships and docks.

Stickering

Placing customer-specific stickers on boxes of product. An example would be where Wal-Mart has a request for their own product codes to be applied to retail boxes prior to shipment.

Stochastic Models

A process model whose behavior is non-deterministic, in that a system's subsequent state is determined both by the process's predictable actions and by a random element.

Stockchase

Moving shipments through regular channels at an accelerated rate: taking extraordinary action due to an increase in relative priority. Synonym: Expediting.

Stock Keeping Unit (SKU)

A category of unit with a unique combination of form, fit, and function (i.e., unique components held in stock). For example, if two items are indistinguishable to the customer, or if any distinguishing characteristics visible to the customer are not important to the customer, so that the customer believes the two items to be the same, these two items are part of the same SKU. As a further illustration, consider a computer company that allows customers to configure a product from a standard catalog of components, choosing from three keyboards, three monitors, and three CPUs. Customers may also individually buy keyboards, monitors, and CPUs. If the stock were held at the configuration component level, the company would have nine SKUs. If the company stocks at the component level, as well as at the configured product level, the company would have 36 SKUs (9 component SKUs + 333 configured product SKUs). If, as part of a promotional campaign, the company also specially packaged the products, the company would have a total of 72 SKUs.

Stockless Inventory

A materials management technique where the management of an organization's supplies is switched to an outside vendor.

Stockless Purchasing

A practice whereby the buyer negotiates a price for the purchase of annual requirements of MRO items, and the seller holds inventory until the buyer places an order for individual items.

Stock Out

A term referring to a situation where no stock was available to fill a customer or production order during a pick operation is called a stockout. Stockouts can be costly, including the profit lost for not having the item available for sale, lost goodwill, substitutions, or lost customers. They can also be referred to as out-of-stock (OOS).

Stock-Out Cost

The opportunity cost associated with not having sufficient supply to meet demand is significant.

Stop Sequence

A load-building technique where the first stop is loaded last.

Stores

The function associated with the storage and issuing of items that are frequently used is called stores. Stores is also frequently seen as an alternative term for a warehouse.

Stovepipe

Also frequently called 'foxhole' or 'stovepipe', silo mentality relates to a management/organizational style where each functional unit operates independently and with little or no collaboration between them and other units regarding major business processes and issues.

Straight Truck

A truck, which has the driver's cab and the trailer combined onto a single frame, is called a straight truck. Straight trucks do not have a separate tractor and trailer. The driving compartment, engine, and trailer are all one unit.