Product Velocity

The number of units a company can sell per time period.

Profitability Analysis

The analysis of profit derived from cost objects is done to improve or optimize profitability. Multiple views may be analyzed, such as market segment, customer, distribution channel, product families, products, technologies, platforms, regions, and manufacturing capacity, etc.

Profitable to Promise

This is effectively a promise to deliver a certain order on agreed terms, including price and delivery. Profitable-to-Promise (PTP) is the logical evolution of Available-to-Promise (ATP) and Capable-to-Promise (CTP). While the first two are necessary for profitability, they are not sufficient. For enterprises to survive in a competitive environment, profit optimization is a vital technology.

Profit Before Interest and Tax (PBIT)

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

Profit Management

The strategy and decision of how to deliver activities that support the delivery of value to the customer, the cost of channel engagement, and product/customer profitability, and the assets required to deliver value.

Profit ratio

The percentage of profit to sales, that is profit divided by sales.

Pro-Forma

A pro forma is a type of quotation or offer that may be used when initially negotiating the sale of goods or services. If the pro forma is accepted, then the terms and conditions of the pro forma may become the request.

Pro Forma Invoice

An invoice, forwarded by the seller of goods prior to shipment, advises the buyer of the particulars and value of the goods. It is usually required by the buyer in order to obtain an import permit or letter of credit.

Promotion

The act of selling a product at a reduced price, or a buy one-get one free offer, for the purpose of increasing sales.

Promotion Planning

Supports sales promotion management and covers both forecasting and evaluation of results. Promotion Planning assesses the impact of promotions on sales volumes, turnover, and margins, supporting planners in the selection of products and markets to promote.

Pro Number

Any progressive or serialized number applied for the identification of freight bills, bills of lading, etc.

Proof of delivery (POD)

Signed by the recipient, this document verifies that the products were delivered in acceptable condition.

Proof of Delivery (POD)

Information supplied by the carrier includes the name of the person who signed for the shipment, the time and date of delivery, and other shipment delivery-related information. POD is also sometimes used to refer to the process of printing materials just prior to shipment (Print on Demand).

Proportional Rate

A rate lower than the regular rate for shipments that have prior or subsequent moves is used to overcome competitive disadvantages of combination rates.

Protocol

Communication standards determine message content and format, enabling uniformity of transmissions.

Pseudo Bill of Materials

A bill of materials that exists only for reference purposes and is not used in the production process is also known as a phantom bill of materials.

PSP

Procurement Services Provider - A service firm that integrates procurement technologies with product sourcing and supply management expertise to provide outsourced procurement solutions.

Public Private Partnering (PPP)

An agreement between a government entity and one or more private industry or other entities to perform work or utilize facilities and equipment, the Public-Private Partnerships initiative is directed toward improving the output and performance of DoD organic activities through increased participation by the private sector via industrial partnering.

Public Warehouse

A business that provides short- or long-term storage to a variety of businesses, usually on a month-to-month basis, is called a public warehouse. A public warehouse generally uses its own equipment and staff; however, agreements may be made where the client either buys or subsidizes equipment. Public warehouse fees usually consist of a combination of storage fees (per pallet or actual square footage) and transaction fees (inbound and outbound). Public warehouses are most often used to supplement the space requirements of a private warehouse. Also, see Contract warehouse and 3PL.

Public Warehouse Receipt

The basic document issued by a public warehouse manager is the receipt for the goods given to the warehouse manager. The receipt can be either negotiable or non-negotiable.

Pull-Based Customer Replenishment Signals

A signal based on actual demand and consumption from customers triggers the issue of a reorder of products or materials.

Pull Ordering System

A system in which each warehouse controls its own shipping requirements by placing individual orders for inventory with the central distribution center. This is a replenishment system where inventory is 'pulled' into the supply chain (or 'demand chain' by POS systems or ECR programs) and is associated with 'build-to-order' systems.

Pull or Pull-Through Distribution

Supply-chain action initiated by the customer. Traditionally, the supply chain was pushed: manufacturers produced goods and 'pushed' them through the supply chain, while the customer had no control. In a pull environment, a customer's purchase sends replenishment information back through the supply chain, from retailer to distributor to manufacturer, so goods are 'pulled' through the supply chain.

Pull Signal

A signal that triggers the issuance of a reorder of products or materials; also known as pull-based customer replenishment signals.

Pup

A 28-foot trailer is mostly used in the less-than-truckload business.

Purchase Order (PO)

The purchaser's authorization is used to formalize a purchase transaction with a supplier. It is the physical form or electronic transaction that a buyer uses when placing an order for merchandise.

Purchase Price Variance

The difference between the actual vendor invoice price or manufacturing cost and the expected or standard cost.

Purchase Price Viscount

A pricing structure in which the seller offers a lower price if the buyer purchases a larger quantity.

Purchasing

The functions associated with buying the goods and services required by the firm are as follows:

Pure raw material

A raw material that does not lose weight in processing.

Push Back Rack

Utilizing wheels in the rack structure, this rack system allows palletized goods and materials to be stored by being pushed up a gently graded ramp. Stored materials are allowed to flow down the ramp to the aisle. This rack configuration allows for deep storage at each rack level.

Push Distribution

The process of building a product and pushing it into the distribution channel without receiving any information regarding requirements.

Push Ordering System

A situation in which a firm makes inventory deployment decisions at the central distribution center and ships them to its individual warehouses accordingly.

Push Technology

Webcasting (push technology) is the prearranged updating of news, weather, or other selected information on a computer user's desktop interface through periodic and generally unobtrusive transmission over the World Wide Web (including the use of the Web protocol on an intranet). Webcasting uses so-called push technology, in which the web server ostensibly 'pushes' information to the user rather than waiting until the user specifically requests it.

Put Away

The activities involved in moving materials from a receiving area or the end of a production process into inventory stock locations.

Put-to-Light

A method that uses lights to direct the placement of materials, most often used in batch picking to designate the tote to place the picked item into.

QC

Quality Control

QFD

Quality Function Deployment

QR

Quick Response

QS 9000

A quality certification program used in the automotive industry, which is based on the ISO 9000 standards.

Qualifier

A data element that identifies or defines a related element, set of elements, or a segment. The qualifier contains a code from a list of approved codes.

Qualitative Forecasting Techniques

A forecasting method where intuition or judgment is typically required due to the lack of hard quantitative facts is called qualitative forecasting. An example of qualitative forecasting is when a new product is being introduced.

Quality

The degree to which a set of defined characteristics of a product or service fulfills known requirements is the measure of quality. Quality is a perceptual, conditional, and somewhat subjective attribute.

Quality Circle

A group composed of individuals trained to identify, analyze, and solve work-related problems presents their solutions to management in order to improve the performance of the organization, motivate employees, and enrich their work. Also, see Small Group Improvement activity.

Quality Control (QC)

The management function ensures that the goods or services manufactured or purchased meet the product or service specifications.

Quality Function Deployment (QFD)

A structured method for translating user requirements into detailed design specifications using a continual stream of 'what-how' matrices, Quality Function Deployment (QFD) links the needs of the customer (end-user) with design, development, engineering, manufacturing, and service functions.

Quality Policy

A quality policy is a statement of the overall quality intentions and direction of an organization, formally expressed by top management. It is a compliance requirement for ISO 9001.

Quantitative Forecasting Techniques

A forecasting method that relies on expert human judgment combined with a rating scale, instead of being purely based on hard (measurable and verifiable) data. Also, see Extrinsic Forecasting Method and Intrinsic Forecasting Method.