Cross Functional

A term used to describe a process or an activity that crosses the boundary between functions, a cross-functional team consists of individuals from more than one organizational unit or function.

Cross Functional “Process” Metric

A number resulting from an equation shows the output of a process that spans departments. These types of measures are also known as process measures because they span across the breadth of a process, regardless of functional/departmental segregation within the process. An example is the Perfect Order Index.

Cross Sell

The practice of attempting to sell additional products to a customer during a sales call, for example, when the customer service representative (CSR) presents a camera case and accessories to a customer who is ordering a camera.

Cross-Shipment

A term used widely in the electronics industry is when a shipment of a replacement part or device is made in advance of the physical return of the defective part.

Cross-Subsidy

In cost accounting, the inequitable assignment of costs to cost objects leads to overcosting or undercosting them relative to the amount of activities and resources actually consumed. This may result in poor management decisions that are inconsistent with the economic goals of the organization.

CRP

Continuous Replenishment Program

CRR

Cost Recovery Rate

CSCMP

Council of Supply Chain Management Professionals

CSF

Critical Success Factor

CSI

Container Security Initiative

CSR

Customer Service Representative.

CTP

Capacity to Promise

C-TPAT

A joint government-business initiative is being undertaken to build cooperative relationships that strengthen overall supply chain and border security. The voluntary program is designed to share information that will protect against terrorists compromising the supply chain.

Cubage

Cubic volume refers to the amount of space that is being used or available for shipping or storage.

Cube

The volume of the shipment or package is calculated as the product of the length x width x depth.

Cube Utilization

The use of space within a storage area, trailer, or container is known as cube utilization. Cube utilization is generally calculated as a percentage of total space or total 'usable' space. It is important to note that there is a point at which too high a percentage of utilization can create inefficiency.

Cubic Space

The measurement of the total space or volume available or required in transportation and warehousing is determined by multiplying the floor space by the height.

Cumulative Available-to-Promise

A calculation that yields future availability based on planned production or purchases and consumption across multiple future periods. Also, see Available-to-Promise.

Cumulative Lead Time

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

Cumulative Source/Make Cycle Time

The cumulative internal and external lead time to manufacture a shippable product, assuming that there is no inventory on hand, no materials or parts on order, and no prior forecasts existing with suppliers, is an element of Total Supply Chain Response Time. The calculation involves the critical path along the following elements: Total Sourcing Lead Time, Manufacturing Order Release to Start Manufacturing, Total Manufacture Cycle Time (Make-to-Order, Engineer-to-Order, Configure/Package-to-Order), or Manufacture Cycle Time (Make-to-Stock), and Complete Manufacture to Ship Time. It is important to note that this determination is made separately for Make-to-Order, Configure/Package-to-Order, Engineer-to-Order, and Make-to-Stock products.

Currency Adjustment Factor (CAF)

An additional charge assessed by water carriers for changes in currency value.

Current Good Manufacturing Practices (CGMP)

Regulations enforced by the U.S. Food and Drug Administration apply to food and chemical manufacturers and packagers.

Customer

1) In distribution, the trading partner or reseller (i.e., Wal-Mart, Safeway, or CVS), and 2) In direct-to-consumer, the end customer or user.

Customer Acquisition or Retention

The rate at which new customers are acquired or existing customers are retained is a key selling point to potential marquee partners. Also, see Marquee Partner.

Customer Driven

The end user, or customer, motivates what is produced and how it is delivered.

Customer Facing

Those personnel or activities whose jobs entail actual contact with the customer.

Customer Interaction Center

A call center is a centralized office used for the purpose of receiving and transmitting a large volume of requests by telephone. A call center is operated by a company to administer incoming product support or information inquiries from consumers. Outgoing calls for telemarketing, clientele, product services, and debt collection are also made. In addition to a call center, collective handling of letters, faxes, live chat, and emails at one location is known as a contact center. Synonym: Customer Interaction Center.

Customer Operations Performance Center (COPC)

Call center consulting, certification, training, and benchmarking company.

Customer Order

An actual order, not a forecast or planned order, is received from a customer for specific products or services.

Customer/Order Fulfillment Process

The typical business process includes the receipt and processing of a customer order through delivery.

Customer Profitability

The practice of placing a value on the profit generated by business done with a particular customer.

Customer Receipt of Order to Installation Complete

Average lead time from receipt of goods at the customer to the time when installation (if applicable) is complete, including the following sub-elements: time to get product up and running, and product acceptance by the customer (an element of Order Fulfillment Lead Time). Note: Determined separately for Make-to-Order, Configure/Package-to-Order, Engineer-to-Order, and Make-to-Stock products.

Customer Relationship Management (CRM)

This refers to information systems that help sales and marketing functions, as opposed to the Enterprise Resource Planning (ERP), which is for back-end integration.

Customer Segmentation

Dividing customers into groups based on specific criteria, such as products purchased and customer geographic location, etc.

Customer Service

Activities between the buyer and seller that enhance or facilitate the sale or use of the seller's products or services.

Customer Service Ratio: See Percent of Fill

Customer Service Representative (CSR)

An individual who provides customer support via telephone in a call center environment.

Customer Signature/Authorization to Order Receipt

Average lead time from customer authorization of an order to the time that the order is received and order entry commences. This is an element of order fulfillment lead time. Note: Determined separately for Make-to-Order, Configure/Package-to-Order, Engineer-to-Order, and Make-to-Stock products.

Customer-Supplier Partnership

An extended relationship between buyers and sellers is based on confidence, credibility, and mutual benefit. The buyer, on its part, provides long-term contracts and assurance of only a small number of competing suppliers. In reciprocation, the seller implements the customer's suggestions and commits to continuous improvement in the quality of the product and delivery.

CUSTOMER WAIT TIME (CWT)

The total elapsed time between the issuance of a customer order and the satisfaction of that order.

Customization

Creating a product from existing components into an individual order. Synonym: Build to Order.

Customs and Border Protection U.S. (CBP)

Formed during the creation of the Department of Homeland Security in 2003, CBP consists primarily of the customs inspection function formerly performed by the U.S. Customs Service as part of the Department of the Treasury, the immigration inspection function formerly performed by the Immigration and Naturalization Service (INS), and the Border Patrol, formerly part of the Department of Justice.

Customs House Broker

A business firm oversees the movement of international shipments through customs and ensures that the documentation accompanying a shipment is complete and accurate.

Customs-Trade Partnership against Terrorism (C-TPAT)

A joint government-business initiative is being undertaken to build cooperative relationships that strengthen overall supply chain and border security. The voluntary program is designed to share information that will protect against terrorists compromising the supply chain.

CWT

The total elapsed time between the issuance of a customer order and the satisfaction of that order.

Cycle Counting

An inventory control and management practice that refers to a process of regularly scheduled inventory counts (usually daily) that 'cycles' through your inventory. Users determine how often certain items or locations are counted using frequency or dollar values segregated into 'ABC' categories. Cycle counting can eliminate the need for wall-to-wall physical counts and can maintain a higher level of ongoing accuracy.

Cycle Inventory

An inventory system where counts are performed continuously, often eliminating the need for an annual overall inventory, is usually set up so that A items are counted regularly (i.e., every month). B items are counted semi-regularly (every quarter or six months), and C items are counted perhaps only once a year.

Cycle Time

The amount of time it takes to complete a business process depends on various factors.