Order Point – Order Quantity System

The inventory method that places an order for a lot whenever the quantity on hand is reduced to a predetermined level, known as the order point.

Order Processing

Activities associated with accepting and fulfilling customer orders.

Order Promising

The act of agreeing to a customer's stated requirements for the delivery of products or services to be provided in a given quantity on a given date.

Order Receipt to Order Entry Complete

Average lead time from receipt of a customer order to the time that order entry is complete, including the following sub-elements: order revalidation, product configuration check, credit check, and order scheduling.

Origin

The place where a shipment begins its movement.

Original equipment manufacturer (OEM)

OEMs are responsible for producing parts or equipment that can be used by other manufacturers to create end products.

Original Equipment Manufacturer (OEM)

The rebranding of equipment and selling it under another name, or as a component of another product.

OS&D

Over, Short, and Damaged.

OSHA

Occupational Safety and Health Administration.

OTIF

On Time In Full.

Outbound Consolidation

Consolidation of a number of small shipments for various customers into a larger load.

Outbound Logistics

The process related to the movement and storage of products from the end of the production line to the end user.

Outbound Supply Chain Network Planning

An inventory distribution or transportation planning strategy that attempts to optimize the time/cost of travel or the cost of holding inventory across multiple sites.

Outgate

The process of checking a container or trailer out of an intermodal facility.

Outlier

In statistical analysis, an outlier refers to a data point that is statistically different from the main body, either significantly high or low.

Out Of Stock

The state of not having inventory at a location and available for distribution or for sale to the consumer (zero inventory).

Outpartnering

A variant of outsourcing seen primarily in the healthcare industry, outpartnering is characterized by close working relationships between buyers and suppliers as a source of knowledge, expertise, and complementary core competencies.

Outsource

To utilize a third-party provider to perform services previously performed in-house.

Outsourced Cost of Goods Sold

Operations performed on raw materials outside of the responding entity's organization that would typically be considered internal to the entity's manufacturing cycle.

Overall Equipment Effectiveness (OEE)

A measure of overall equipment effectiveness that takes into account machine availability, performance, and output quality.

Overpack

The practice of using a large box or carton to contain multiple smaller packages, which are all going to the same destination, in order to achieve a reduced overall shipping cost compared to the individual packages.

Over, short and damaged (OS&D)

This is typically a report issued at the warehouse when goods received are more or less than indicated by the packing slip or are damaged. It is used to file a claim with the carrier.

Over-the-Road

A motor carrier operation that involves long-distance, intercity moves is the opposite of local operations.

Owner-Operator (OO)

A trucking operation in which the owner of the truck is also the driver.