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.

Computerized Maintenance Management Systems (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.

Computerized Process Simulation

Use of computer simulation to facilitate the sequencing of production operations, analysis of production flows, and layout of manufacturing facilities.

Computerized 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.

Concurrent Engineering

A cross-functional, team-based approach in which the product and the manufacturing process are designed and configured within the same time frame, rather than sequentially. Ease and cost of manufacturability, as well as customer needs, quality issues, and product-life-cycle costs, are taken into account earlier in the development cycle. Fully configured concurrent engineering teams include representation from marketing, design engineering, manufacturing engineering, and purchasing, as well as supplier—and even customer—companies.

Configuration

The selection and grouping of components and assemblies into a finished product.

Configure/Package-to-Order

A process where the trigger to begin manufacturing, final assembly, or packaging of a product is an actual customer order or release, rather than a market forecast. In order to be considered a Configure-to-Order environment, less than 20% of the value-added takes place after the receipt of the order or release, and virtually all necessary design and process documentation is available at the time of order receipt.

Confirmation

With regards to EDI, a formal notice (by message or code) from an electronic mailbox system or EDI server indicating that a message sent to a trading partner has reached its intended mailbox or been retrieved by the addressee.

Confirming Order

A document similar to, or the same as, a purchase order, which is provided to a supplier as confirmation of a previous verbal purchase request.

Conformance

A term used in quality management to confirm the adherence to specifications of a product or service. Synonym: Compliance.

CONOPS

Concept of Operations: There are various uses and users for CONOPS. The primary purpose of the CONOPS is to provide a vision for an initiative or desired capability. In general, the CONOPS provides guidance to those users requiring direction and/or information on developing their own documents, schedules, milestones, and plans.

Conrail

The Consolidated Rail Corporation was established by the Regional Reorganization Act of 1973 to operate the bankrupt Penn Central Railroad and other bankrupt railroads in the Northeast. Funding was provided by the 4-R Act of 1976.

Consensus

A state in which all the members of a group support an action or decision, even if some of them do not fully agree with it.

Consignee

The party to whom goods are shipped and delivered is the receiver of a freight shipment.

Consignment

The act of consigning - placing a person or thing in the possession of another, but retaining ownership until the goods are sold - may apply to shipping or sale in a store (i.e., a consignment shop). Also, see Consignment Inventory.

Consignment Inventory

1) Goods or products that are paid for when they are sold by the reseller, not at the time they are shipped to the reseller. 2) Goods or products which are owned by the vendor until they are sold to the consumer.

Consignor

The party who originates a shipment of goods is called the shipper. The shipper is the sender of a freight shipment, usually the seller.

Consolidation

Combining two or more shipments in order to realize lower transportation rates is known as consolidation. Inbound consolidation from vendors is called make-bulk consolidation, while outbound consolidation to customers is called break-bulk consolidation.

Consolidator

An enterprise that provides services to group shipments, orders, and/or goods in order to facilitate movement.

Consortium

An association of two or more individuals, companies, organizations, or governments (or any combination of these entities) with the objective of participating in a common activity or pooling their resources to achieve a common goal.