The increasing variability of demand as one moves upstream in a supply chain.
collaborative planning, forecasting, and replenishment (CPFR)
An approach to demand planning in supply chains in which partners negotiate and agree on a plan for meeting demand.
perfect order
An order that arrives on time as promised, is of the correct quantity, is not damaged, and also includes all of the agreed-upon services
retailer-supplier partnerships (RSPs)
A retailer/supplier alliance that changes the way inventory is delivered and the way it changes hands.
risk pooling
Inventory held in one warehouse to service a large number of retailers requires less inventory than if held at the individual retailers.
supply-chain network optimization
Optimization of decisions across the entire geographical network of the supply chain.
third party logistics provider (3PL)
A provider of logistics services such as warehousing or transportation and logistics.
vendor managed inventory (VMI)
A retailer-supplier partnership in which the supplier manages the inventory in the retail store and in some cases maintains ownership of the inventory until it is purchased by the consumer.