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destinations. Manifests usually list the items, piece count, total weight, and the destination name and
address for each destination in the load.
Shop Calendar: See Manufacturing Calendar
Definitions compiled by:
Kate Vitasek
Supply Chain Visions
www.scvisions.com
Bellevue, Washington
Please note: The Council of Supply Chain Management Professionals (CSCMP) does not take responsibility for the content of these definitions,
nor does CSCMP endorse these as official definitions except as noted.
Page 131 of 167
SUPPLY CHAIN and LOGISTICS
TERMS and GLOSSARY
Updated October 2006
Shop Floor Production Control Systems: The systems that assign priority to each shop order,
maintaining work-in-process quantity information, providing actual output data for capacity control
purposes and providing quantity by location by shop order for work-in-process inventory and
accounting purposes.
Short-Haul Discrimination: Charging more for a shorter haul than for a longer haul over the same
route, in the same direction, and for the same commodity.
Short Shipment: Piece of freight missing from shipment as stipulated by documents on hand.
Shrinkage: Reductions of actual quantities of items in stock, in process, or in transit. The loss may
be caused by scrap, theft, deterioration, evaporation, etc.
SIC: See Standard Industrial Classification
Sigma: A Greek letter commonly used to designate the standard deviation of a population. Sigma is
a statistical term that measures how much a process varies from perfection, based on the number of
defects per million units.
One Sigma = 690,000 per million units
Two Sigma = 308,000 per million units
Three Sigma = 66,800 per million units
Four Sigma = 6,210 per million units
Five Sigma = 230 per million units
Six Sigma = 3.4 per million units
Silo: Also frequently called Foxhole or Stovepipe , relates to a management / organization style
where each functional unit operates independently, and with little or no collaboration between them
on major business processes and issues.
Simulation: A mathematical technique for testing the performance of a system due to uncertain
inputs and/or uncertain system configuration options. Simulation produces probability distributions for
the behavior (outputs) of a system. A company may build a simulation model of its build plan process
to evaluate the performance of the build plan under multiple scenarios on product demand.
Single-Period Inventory Models: Inventory models used to define economical or profit maximizing
lot-size quantities when an item is ordered or produced only once, e.g., newspapers, calendars, tax
guides, greeting cards, or periodicals, while facing uncertain demands.
Single Sourcing: When an organization deliberately chooses to use one supplier to provide a product
or service, even though there are other suppliers available.
Single Source Leasing: Leasing both the truck and driver from one source.
Six-Sigma Quality: A term used generally to indicate that a process is well controlled, i.e., tolerance
limits are ±6 sigma {3.4 defects per million events) from the centerline in a control chart. Six Sigma s
goal is to define processes and manage those processes to obtain the lowest possible level of error
thus it can be applied to virtually any process, not just manufacturing. The term is usually associated
with Motorola, which named one of its key operational initiatives Six-Sigma Quality.
Definitions compiled by:
Kate Vitasek
Supply Chain Visions
www.scvisions.com
Bellevue, Washington
Please note: The Council of Supply Chain Management Professionals (CSCMP) does not take responsibility for the content of these definitions,
nor does CSCMP endorse these as official definitions except as noted.
Page 132 of 167
SUPPLY CHAIN and LOGISTICS
TERMS and GLOSSARY
Updated October 2006
Skills Matrix: A visible means of displaying people s skill levels in various tasks. Used in a team
environment to identify the skills required by the team and which team members have those skills.
SKU: See Stock Keeping Unit
Sleeper Team: The use or two drivers to operate a truck equipped with a sleeper berth; while one
driver sleeps in the berth to accumulate the mandatory off-duty time, the other driver operates the
vehicle.
Slip Seat Operation: A term used to describe a motor carrier relay terminal operation where one
driver is substituted for another who has accumulated the maximum driving time hours.
Slip Sheet: Similar to a pallet, the slip sheet, which is made of cardboard or plastic, is used to
facilitate movement of unitized loads.
Slot Based Production: A lean manufacturing term used to describe a production system which has
been level loaded (Heijunka) with a few slots held open for situations where demand must be met
immediately.
Slotting: Inventory slotting or profiling is the process of identifying the most efficient placement for
each item in a distribution center. Since each warehouse is different, proper slotting depends on a
facility s unique product, movement, and storage characteristics. An optimal profile allows workers to
pick items more quickly and accurately and reduces the risk of injuries.
Slurry: Dry commodities that are made into a liquid form by the addition of water or other fluids to
permit movement by pipeline.
Small Group Improvement Activity: An organizational technique for involving employees in
continuous improvement activities. Also see: Quality Circle
SMART: See Specific, Measurable, Achievable, Realistic, Time-Based
Smart and Secure Trade Lanes (SST): Private initiative of the Strategic Council on Security
Technology, an assembly of executives from port operators, major logistics technology providers,
transportation consultancies, and former generals and public officials. Aims to enhance the safety,
security and efficiency of cargo containers and their contents moving through the global supply chain
into U.S. ports.
Smart Label: A label that has an RFID tag integrated into it.
SOA: See Service Oriented Architecture
Society of Logistics Engineers: A professional association engaged in the advancement of logistics
technology and management.
Software as Services (SaS): A term which describes the use of computer systems provided by a
remote third party, similar to what has traditionally been called a Service Bureau or Application
Service Provider (ASP) . In this setting the service provider maintains all of the computer hardware
and software at their location, while the user accesses the systems via an internet connection and is
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