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.

Permanent Storage

An area of the warehouse used for, or the goods themselves, a class of goods intended to be in storage for longer than 90 days.

Permit

A grant of authority to operate as a contract carrier.

Perpetual Inventory

The system of record-keeping tracks book inventory by recording all receipts, issues, and adjustments as they occur.

Personal Digital Assistant (PDA)

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

Personal Discrimination

Charging different rates to shippers with similar transportation characteristics, or vice versa.

Phantom Bill of Material

A Bill of Materials (BOM) is used for a product or group of parts that are not normally built and stocked but are immediately used in production. MRP processors ignore the phantom and instead include the component parts in production orders and for planning purposes.

Physical Distribution

The movement and storage functions associated with finished goods from manufacturing plants to warehouses and customers are also used synonymously with business logistics.

Physical Supply

The movement and storage functions associated with raw materials from supply sources to the manufacturing facility.

PI

Packaging Indicator

Pick and pack

This is the process of picking items for a specific order out of storage within a warehouse and packing them for shipping.

Pick and Pass

Segregating your DC pick area into pick zones, where the operators perform picks only in the zones assigned to them, and the order picking container travels (is passed) from one zone to another using conveyors or pick carts, reduces the travel time for pickers.

Pick-by-Light

A laser identifies the bin for the next item in the rack. When the picker completes the pick, the barcode is scanned, and the system then points the laser at the next bin.

Picking

The operations involved in pulling products from storage areas to complete a customer order.

Picking by Aisle

A method by which pickers pick all needed items in an aisle, regardless of the items' ultimate destination. The items must be sorted later. This is a component of Wave Picking.

Picking by Source

A method in which pickers successively pick all items going to a particular destination, regardless of the aisle in which each item is located.

Pick List

A list of items to be picked from stock in order to fulfill an order; the pick list generation and the picking method can be quite sophisticated.

Pick Module

A dedicated area specifically designed to enhance pick operations is usually supported by a belt conveyor or roller assembly to move picked products to a packaging/shipping area. Pick modules are often multi-level rack structures using pallet or case flow storage and pick-to-light systems.

Pick on Receipt

The product is received and picked in one operation (movement); therefore, the product never actually touches the ground within the warehouse. It is unloaded from one vehicle and reloaded onto an outbound vehicle. This process is related to Cross Docking.

Pick/Pack

Picking products from inventory and packing them into shipment containers.

Pick-to-Carton

Pick-to-carton logic uses item dimensions and weights to select the shipping carton prior to the order picking process. Items are then picked directly into the shipping carton.

Pick-to-Clear

A method often used in warehouse management systems is to direct picking to the locations with the smallest quantities on hand.

Pick-to-Light

Pick-to-light systems consist of lights and LED displays for each pick location. The system uses software to light up the next pick and display the quantity to be picked.

Pick-to-Trailer

Order-picking method where the order picker transports the materials directly from the pick location to the trailer without any interim checking or staging steps.

Pickup and Delivery

A type of transportation, usually local, where the carrier follows a regular route, making deliveries and picking up shipments.

Pick-Up Order

A document indicating the authority to pick up cargo or equipment from a specific location.

Piece Count

Number of individual cases, packages, or bundles in an intermodal trailer or container.

Piggyback

Terminology used to describe a truck trailer being transported on a railroad flatcar.

Pin Lock

A hard piece of iron formed to fit on a trailer's pin that locks in place with a key to prevent an unauthorized person from moving the trailer.