Cabotage

A federal law requires coastal and inter-coastal traffic to be carried in U.S.-built and registered ships.

CADEX

Customs Automated Data Exchange System

CAE

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

Cage

(1) A secure enclosed area for storing highly valuable items is called a vault. (2) It is a pallet-sized platform with sides that can be secured to the tines of a forklift. A person may ride on it to inventory items stored high above the warehouse floor.

CAGE Code

The Commercial and Government Entity code is a 5-character (numbers and letters) code used to identify contractors doing business with the U.S. Government.

Caged

Referring to the practice of placing high-value or sensitive products in a fenced-off area within a warehouse.

Calendar Days

The conversion of working days to calendar days is based on the number of regularly scheduled workdays per week in your manufacturing calendar. Calculation: To convert from working days to calendar days, if the work week is 4 days, multiply by 1.75; if the work week is 5 days, multiply by 1.4; if the work week is 6 days, multiply by 1.17.

Call 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.

Call-Off Orders

A strategy to delay the delivery of items that are not needed immediately is to 'call off' the items from the purchase order as you need them. This approach is known as a Blanket Purchase Order.

Call Volume

The number of telephone calls made or received over a specific period of time.

Can-Order Point

A supplier ordering method where multiple items from the same vendor are considered/reviewed if any one item from that vendor falls below a specific order point (either set or calculated). Once an item triggers an order, any other items which are near their order point are also considered. This is done to prevent multiple orders for a single vendor in a short time frame, allowing for possible price breaks and shipping discounts.

Cantilever Rack

Racking systems support columns at the rear and arms, which attach to the support columns to hold shelving or stock. Cantilever racks allow for storage of very long items.

Capability Maturity Model (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.

Capable to Promise (CTP)

A technique similar to Available-to-Promise, it uses the availability of individual components to determine if an end item can be configured and assembled by a customer-given request date. It also provides the ability to adjust plans due to inaccurate delivery date promises. Capable-to-promise looks at both materials and labor/machine requirements.

Capacity

The physical facilities, personnel, and processes available to meet the product or service needs of customers. Capacity generally refers to the maximum output or producing ability of a machine, a person, a process, a factory, a product, or a service. Also, see Capacity Management.

Capacity Management

The concept is that capacity should be understood, defined, and measured for each level in the organization, including market segments, products, processes, activities, and resources. In each of these applications, capacity is defined in a hierarchy of idle, non-productive, and productive views.

Capacity Planning

Assuring that needed resources (e.g., manufacturing capacity, distribution center capacity, transportation vehicles, etc.) will be available at the right time and place to meet logistics and supply chain needs.

CAPEX

A term used to describe the monetary requirements (capital expenditure) of an initial investment in new machines or equipment. Capital refers to the resources or money available for investing in assets that produce output.

CAR

Corrective Action

Carbon Footprint

A measure of the total carbon emissions for a given person, organization, building, operation, etc., and the impact of their carbon emissions on the environment is determined by relating the amount of greenhouse gases produced to activities such as burning fossil fuels for electricity, heating, transportation, etc.

Carbon Trade

The process of buying and selling credits to emit carbon is known as carbon trading. Companies and organizations are assigned emission permits that represent the amount of carbon they are allowed to emit. If a company or organization emits less carbon, it can sell its emission permits. However, if emissions exceed the current permits, the company or organization will need to buy emission permits from other companies or organizations that produce less carbon.

Cargo

The subject of a shipment is the materials being carried.

Carload Lot

A shipment of no less than five tons of one commodity.

Carmack Amendment

An amendment to the Interstate Commerce Act that delineates the liability of common carriers and the provision of the bill of lading.

Carousel

Carousels are a technology used to store items for eventual picking or retrieval in a series of motorized bins. There are two primary types of carousels (horizontal and vertical) and one related technology, all of which operate under some form of computer control. Since the late 1990s, carousels have been placed under the more general category of AS/RS.

Carrier

A firm which transports goods or people via land, sea, or air.

Car Supply Charge

A railroad charges for a shipper's exclusive use of special equipment.

Cartel

A group of organizations, which would normally be considered competitive, but who instead have an agreement to cooperate in an area of endeavor, in an effort to improve the position of the group.

Cartonization

The process of putting small box shipments into a larger carton, also called overpacking or strapping cases together.

Cascade Tendering

Loads are electronically submitted to the carrier who submitted the lowest rate on that shipping lane (origin zip code to destination zip code).

Case Code

The UPC number for a case of product is the UPC case code, which is different from the UPC item code because it uses the case identifier as an extended part of the number. This is sometimes referred to as the 'Shipping Container Symbol' or ITF-14 code.

Cash Conversion Cycle

Typically, the length of time from the purchase of raw materials to the collection of payment from customers is referred to as the cash-to-cash cycle time. In retail settings, it may also refer to the length of time from sales to payment receipt. Also, see Days Outstanding.

Cash-to-Cash Cycle Time

The time it takes for cash to flow back into a company after it has been spent on raw materials is known as the Cash Conversion Cycle (C2C). It is important to note that this measure refers to the timing of the financial transaction, not the movement of stock. In some cases, C2C can be negative, indicating that payment is received from product sales before the supplier is paid. The calculation for C2C is as follows: Total Inventory Days of Supply + Days of Sales Outstanding - Average Payment Period for Material in days.

Catalog Item (CI)

The item, as it is stored in a catalog or data pool, is referred to as the catalog item. In the Global Data Synchronisation Network, the catalog item is uniquely identified by the combination of GTIN, GLN, and Target Market.

Categorical Plan

A method of categorizing purchased materials and suppliers based on product type, using departments or functional areas. Plans are used to evaluate suppliers in groups. Also, see Weighted-Point Plan.

Category Management

The management of product categories as strategic business units empowers a category manager with full responsibility for assortment decisions, inventory levels, shelf-space allocation, promotions, and buying. With this authority and responsibility, the category manager is able to judge more accurately the consumer buying patterns, product sales, and market trends of that category.

Cause and Effect Diagram

In quality management, a structured process is used to organize ideas into logical groupings. It is used in brainstorming and problem-solving exercises. It is also known as the Ishikawa or fishbone diagram.

CBP

Customs and Border Protection.

CBT

Computer-Based Training

Cell

An area of manufacturing or assembly that consists of a series of work units devoted to the manufacture of a specific product, cellular manufacturing is an alternative to the traditional production line.

Cellular Manufacturing

A manufacturing approach in which equipment and workstations are arranged to facilitate small-lot, continuous-flow production. In a manufacturing 'cell', all operations necessary to produce a component or subassembly are performed in close proximity, thus allowing for quick feedback between operators when quality problems and other issues arise. Workers in a manufacturing cell are typically cross-trained and able to perform multiple tasks as needed.

Center-of-Gravity Approach

A supply chain planning methodology for locating distribution centers at the approximate location representing the minimum transportation costs between the plants, the distribution centers, and the markets.

Centralized Authority

Management authority to make decisions is restricted to a few managers.

Centralized Dispatching

An organizational strategy and structure where all workflow is controlled from a single location or group, dispatching can consist of production orders as well as inbound/outbound shipments of goods.

Centralized Inventory Control

An organizational strategy and structure where all inventoried items are controlled from a single location or group.

Certificated Carrier

A for-hire air carrier that is subject to economic regulation and requires an operating certification to provide services.

Certificate of Analysis (COA)

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

Certificate of Compliance

A document, often required by an importer or governmental authorities, attesting to the quality or purity of commodities, is a certification. The certification may originate from a chemist or any other authorized body, such as an inspection firm retained by the exporter or importer.