Self Billing A transportation industry strategy which prescribes that a carrier will accept payment based on the tender document provided by the shipper. Secure Electronic Transaction (SET) In e-commerce, a system of guaranteeing the security of financial transactions conducted over the Internet. For example, if December’s sales were, on average, 30% greater than the average monthly sales for the year, you would have a seasonality index of 1.3 (1 plus. If seasonality for a period results in demand greater than the average demand, it will be represented by a number greater than one. The average demand is represented by the number one. Seasonality index consists of a number for each specific forecast period that describes the relationship of each period’s demand to the average demand over the complete seasonal cycle. The most common representation of seasonality occurs with changing demand patterns measured weekly, monthly, or quarterly, that repeat annually. A scrap rate would be attached to a specific component on the bill of materials for a specific item Seasonality fluctuations in demand that repeat with the same pattern over equivalent time periods. Scrap rate the rate of expected scrap for specific components within the context of manufacturing an item. Scrap inventory that must be discarded or recycled as a result of a manufacturing process or damage that occurs during storage or material handling. The dashboard/scorecards philosophy can also be applied to external supply chain partners like suppliers to ensure that their objectives and practices align. In addition, scorecards should be reviewed regularly – at least on a monthly basis and weekly in key functions, such as manufacturing and distribution where activities are critical to the success of a company. Ideally, a dashboard/scorecard should be cross functional in nature and include both financial and non-financial measures. Metrics dashboards/scorecards should be easy to read and usually have red, yellow, green indicators to flag when the company is not meeting its metrics targets.

Scorecard A performance measurement tool used to capture a summary of the key performance indicators (KPIs)/metrics of a company.

The aim of the SCOR is to provide a standardized method of measuring supply chain performance, and to use a common set of metrics to benchmark against other organizations. This is the model developed by the Supply-Chain Council (SCC), and is built around six major processes: plan, source, make, deliver, return, and enable. Scientific inventory control the use of mathematical models to find optimal stock levels and ordering policies SCOR Supply Chain Operations Reference Model. If there’s an increase in production sales value with no change in labor costs, productivity has increased while unit cost has decreased. The universal standard is the ratio of labor costs to sales value added by production. The Scanlon plan originated in the 1930s by Joe Scanlon and MIT. Scanlon Plan A system of group incentives on a companywide or plant-wide basis that sets up one measure that reflects the results of all efforts. The economies of scale don’t really kick in until your reach the critical mass, and then revenues start to increase exponentially. 2) How well a solution to a problem will work when the size of the problem increases.

Scalability 1) How quickly and efficiently a company can ramp up to meet demand. Sawtooth Diagram A quantity-versus-time graphic representation of the order point/order quantity inventory system showing inventory being received, used up, and reordered. Sales Order document used to approve, track, and process outbound customer shipments. Sales Mix The proportion of individual product-type sales volumes that make up the total sales volume. S&OP usually involves various business functions, such as sales, operations, and finance to agree on a single plan/forecast that can be used to drive the entire business.

Sales and Operations Planning (S&OP) A strategic planning process that reconciles conflicting business objectives and plans future supply chain actions. Salable Goods A part of assembly authorized for sale to final customers through the marketing function. Safety Stock The inventory a company holds above normal needs as a buffer against delays in receipt of supply or changes in customer demand. Though safety lead time is used in the ordering calculation to determine when you need to order something, it is excluded from the calculation that then determines the “requested date” for the order. S Safety Lead Time a means of adding some time to your lead time as part of your ordering calculations.

Another word for reverse logistics