And that’s when we realized, it was time to update our WMS.

Our weighted mammoth scale?

No, no.

Maybe, our wooded mountain slope?

If you find yourself surrounded by unfamiliar acronyms, this is for you.

Procurement

• P2P (Procure-to-Pay) – The end-to-end process from purchasing goods/services to processing supplier payments.

• RFx (Request For) – A general term encompassing RFI, RFQ, and RFP, used to solicit information, pricing, or proposals from suppliers.

• COGS (Cost of Goods Sold) – The direct costs associated with producing goods, including materials and labor.

• OEM (Original Equipment Manufacturer) – A company that produces parts or products that are sold under another brand’s name.

• ODM (Original Design Manufacturer) – A company that designs and manufactures a product that is rebranded by another firm.

• MOQ (Minimum Order Quantity) – The smallest quantity of a product a supplier is willing to produce or sell.

• Supplier Scorecard – A tool used to measure and evaluate supplier performance based on cost, quality, and reliability.

• Sourcing Strategy – The approach to supplier selection, contract negotiation, and procurement efficiency.

Inventory & Logistics

• WMS (Warehouse Management System) – A system that tracks inventory levels, orders, and warehouse operations.

• TMS (Transportation Management System) – Software that optimizes shipping routes, carrier selection, and freight costs.

• MRP (Material Requirements Planning) – A system that determines what materials are needed and when to ensure production runs smoothly.

• Just-in-Time (JIT) – A strategy where materials are ordered and received only as needed to reduce inventory costs.

• Lead Time – The total time from ordering to receiving goods, including supplier production and shipping time.

• Safety Stock – Extra inventory kept on hand to prevent stockouts due to demand fluctuations or supply chain disruptions.

• FIFO (First In, First Out) – An inventory management approach where the oldest stock is used or sold first.

• LIFO (Last In, First Out) – An alternative inventory method where the most recently received stock is used or sold first.

• Dropshipping – A fulfillment method where products are shipped directly from the supplier to the customer, bypassing the distributor’s warehouse.

Manufacturing & Production

• BOM (Bill of Materials) – A detailed list of raw materials, components, and parts needed to manufacture a product.

• Work-in-Progress (WIP) – Inventory that is in the production process but not yet completed.

• Kanban System – A lean manufacturing method that signals when inventory or parts need replenishment.

• SPC (Statistical Process Control) – A quality control method that monitors and controls manufacturing processes using data.

• Six Sigma – A methodology focused on reducing defects and improving process efficiency in manufacturing.

• OEE (Overall Equipment Effectiveness) – A metric used to measure the efficiency of manufacturing equipment.