P2P

Peer-to-Peer

Package to Order

A postponement strategy is implemented when products are received in bulk or manufactured without final packaging. This allows for a variety of packaging options for a single product. An example of this strategy is when a product is shipped to retailers with packaging specifically designed for each individual retailer.

Packaging Indicator (PI)

The first digit of the U.P.C. shipping container (EAN/UCC-128) code identifies the packaging level.

Packing and Marking

Sometimes referred to as preservation, packaging, and marking, these are the activities related to packing for shipping by placing goods into designated containers and labeling (marking) the container with customer-prescribed destination and other information.

Packing List

List showing merchandise packed and all particulars. Normally prepared by the shipper, but not required by carriers. A copy is sent to the consignee to help verify shipment received. It may be inside the box or attached to the outside in a clear envelope. This is the physical equivalent of the electronic Advanced Ship Notice (ASN).

Pack Out

In a fulfillment environment, this refers to the operations involved in packaging and palletizing individual units of product for introduction into the warehouse distribution environment. For example, a contracted 3PL may receive or assemble units of product that need to be placed into retail packaging, then over-packed with a carton, and finally palletized.

Pallet

The platform on which cartons are stacked and then used for shipment or movement as a group is called a pallet. Pallets may be made of wood or composite materials. Some pallets have electronic tracking tags (RFID), and most are recycled in some manner.

Pallet Jack

Material handling equipment consists of two broad parallel pallet forks on small wheels used in the warehouse to move pallets of products, but it does not have the lifting capability of a forklift. It can be a motorized unit guided by an operator who stands on a platform, or it can be a motorized or manual unit guided by an operator who walks behind or beside it. It comes as a 'single' (one pallet) or 'double' (two pallets).

Pallet Rack

A single or multi-level structural storage system is utilized to support high stacking of single items or palletized loads.

Pallet Tag

Also known as 'License Plate', the barcoded sticker that is placed on a unit load or partial load, typically at receiving, the pallet tag can be scanned with an RF gun.

Pallet Ticket

A document or label attached to a pallet shows the description, part number, and quantity of the item contained on the pallet.

Pallet Wrapping Machine

A machine that wraps a pallet's contents in stretch wrap to ensure safe shipment.

Parcel

This is a method of shipping that includes small quantities of items, usually sent directly to customers and packaged in boxes or poly mailers.

Parcel Case Strapping

The act of consolidating two or more individual cartons or cases of a shipment together with strapping to form one single unit is done in an effort to improve efficiency and reduce costs.

Parcel Shipment

Parcels include small packages, like those typically handled by providers such as UPS and FedEx.

Pareto

A means of sorting data, for example, the number of quality faults by frequency of occurrence. This is an analysis comparing cumulative percentages of the rank ordering of costs, cost drivers, profits, or other attributes to determine whether a minority of elements has a disproportionate impact. Another example is identifying that 20% of a set of independent variables is responsible for 80% of the effect. Also, see the 80/20 Rule.

Part Period Balancing (PPB)

A lot size technique that uses look ahead and look back functions to consider additional periods in modifying an initial calculation based on the least total cost. Also, see Discrete Order Quantity and Dynamic lot sizing.

Part Standardization

A strategy designed to eliminate excessive SKU counts (part numbers) from inventory control systems through the use of common parts and components. Also known as 'rationalizing'.

Passenger-Mile

A measure of output for passenger transportation; it reflects the number of passengers transported and the distance traveled; a multiplication of passengers hauled and distance traveled.

Password

A private code is required to gain access to a computer, an application program, or a service.

Past Performance Automated Information System (PPAIS)

A U.S. DoD central database allows program managers and contracting officials to review the past performance records of potential bidders. This webpage, available at http://dodppais.navy.mil, provides users with access to more than 8,600 past performance report cards, which embody more than $300 billion in defense contracts.

Path to Profitability (P2P)

The step-by-step model to generate earnings.

Pattern Recognition

A technique of looking at raw data and classifying it based on either experience or statistical information drawn from the patterns.

Payment

The transfer of money, or other agreed-upon medium, for the provision of goods or services.

Pay-on-Use

Pay-on-Use is a process where payment is initiated by product consumption, i.e. consignment stock based on the withdrawal of products from inventory. This process is popular with many European companies.

Payroll

Total of all fully burdened labor costs, including wages, fringe benefits, overtime, bonuses, and profit sharing.

PBIT

The financial profit generated prior to the deduction of taxes and interest due on loans is also called operating profit.

PBL

Performance-Based Logistics

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.

P&D

Pickup and delivery.

PDA

A handheld device that combines computing, telephone/fax, and networking features.

PDCA

A four-step quality improvement cycle, based on a process described by Walter Shewhart, involves continuous improvement based on analysis, design, execution, and evaluation. Sometimes referred to as plan/do/study/act, it emphasizes constant attention and reaction to factors that affect quality. Synonyms: Shewhart Cycle.

PDM

A technology solution that provides a single, centralized data repository enabling authorized users throughout a company to access and update current product information, while ensuring they follow specific procedures.

Peak Demand

The time period during which the quantity demanded is greater than during any other comparable time period.

Peer to Peer (P2P)

A computer networking environment that allows individual computers to share resources and data without passing through an intermediate network server.

Pegged Requirement

An MRP component demand quantity is linked to demand at a higher level (parent or subassembly).

Pegging

A technique in which an ERP system traces demand for a product by date, quantity, and warehouse location.

Percent of Fill

Number of lines or quantity actually shipped as a percentage of the original order. Synonym: Customer Service Ratio.

Per Diem

1) The rate of payment for the use of one railroad's cars by another. 2) A daily rate of reimbursement for expenses.

Perfect Order

The definition of a perfect order is one that meets all of the following criteria: delivered complete, with all items on the order in the quantity requested; delivered on time to the customer's requested date, using the customer's definition of on-time delivery; delivered with complete and accurate documentation supporting the order, including packing slips, bills of lading, and invoices; delivered in perfect condition with the correct configuration, customer-ready, without damage; and faultlessly installed (as applicable).

Perfect Order Index (POI)

A value, which is calculated by cross-multiplying the criteria that are part of the perfect order, is the Calculation = (%ontime) X (%complete) X (%damage-free) X (%complete documentation).

Performance and Event Management Systems

The systems that report on the key measurements in the supply chain include inventory days of supply, delivery performance, order cycle times, and capacity use, among others. Using this information, we can identify causal relationships and suggest actions that align with the business goals.

Performance-Based Logistics (PBL)

Originally a U.S. Government program, PBL describes the purchase of assets with a complete package of services and support as an integrated, affordable performance package designed to optimize system readiness and meet performance goals through long-term support arrangements with clear lines of authority and responsibility.

Performance Measurement Program

A performance measurement program goes beyond just having performance metrics in place. Many companies do not realize the full benefit of their performance metrics because they often do not have all of the necessary elements in place to support their metrics.

Performance Measurement Units

Specific measurements such as time, cost, error rates, accuracy rates, and milestones.

Performance Measures

Indicators of the work performed and the results achieved in an activity, process, or organizational unit are performance measures. These measures should be both non-financial and financial, enabling periodic comparisons and benchmarking.

Periodic Review System

A reordering strategy is implemented where orders are placed on a fixed order schedule, and the order quantity is adjusted from order to order to accommodate actual consumption or forecast requirements.

Period Order Quantity

A lot-sizing technique suggests orders with quantities that cover requirements for a variable number of periods based on order and holding costs, as opposed to a fixed-period quantity that uses a standard number of periods.