Supply Chain & Logistics Glossary
Supply chain and logistics professionals speak their own language. Here’s your guide to cracking the code.
What Is Purchasing?
Purchasing is the specific function within procurement that involves buying materials, goods or services from suppliers.
What Is Put-To-Light?
Put-to-light is a system where lights indicate specific storage locations for order fulfillment, guiding workers to place items accurately into a bin or robot. Also known as pick-to-light in reverse. Often used in batch picking, where the operator puts different quantities of a single SKU in several orders.
What Is a Pull System?
A pull system is an inventory and production management approach deeply rooted in the philosophy of lean manufacturing. Instead of forecast-driven strategies, pull systems trigger production and movement of goods based on actual customer demand, not projections. Aligning production with real-time demand helps businesses operate more efficiently, reduce excess capacity and respond to customer preferences. A pull system determines how companies approach production, inventory management and supply chain dynamics.
What Is a Push System?
A push system is an inventory and production management approach that produces goods based on forecasts or predetermined schedules, regardless of immediate demand. Also called a “make-to-stock” system, push systems often result in large amounts of inventory. Unless sold quickly, large inventories cause excess carrying costs and the potential that products will become obsolete. A push system determines how companies approach production, inventory management and supply chain dynamics.
What Is a Reorder Point?
A reorder point refers to the inventory level when a new order should be placed to replenish stock before it runs out.
What Is Resilience?
Resilience is the ability of a supply chain to recover quickly from disruptions or shocks.
What Is Reverse Logistics?
Reverse logistics is the process of handling returned goods, recycling or disposing of products after they’ve been delivered to customers.
What Is RFID (Radio Frequency Identification)?
RFID (radio frequency identification) is technology that uses radio waves to identify and track items, improving inventory visibility and supply chain efficiency.
What Is a Roller Conveyor?
A roller conveyor is a conveyor system with rollers that move items along a fixed path, commonly used in distribution centers.
What Is Safety Stock?
Safety stock is extra inventory held as a buffer to account for uncertainties in demand or supply.
