Logistic Glossary – Letter E
See Enterprise Application Integration (EAI).
European Article Numbering/Uniform Code Council.
Early Supplier Involvement (ESI)
The process of involving suppliers early in the product design activity and drawing on their expertise, insights, and knowledge to generate better designs in less time and ones that are easier to manufacture with high quality.
Earnings Before Interest and Taxes (EBIT)
A measure of a company's earning power from ongoing operations, equal to earnings (revenues minus cost of sales, operating expenses, and taxes) before deduction of interest payments and income taxes. Also called operating profit.
Earnings Before Interest and Taxes (EBIT).
Electronic Commerce (EC)
Engineering Change Order (ECO)
See Electronic Commerce.
Economic Order Quantity (EOQ)
An inventory model that determines how much to order by determining the amount that will meet customer service levels while minimizing total ordering and holding costs.
Economic Value Added (EVA)
A measurement of shareholder value as a company's operating profits after tax, less an appropriate charge for the capital used in creating the profits.
Economy of Scale
A phenomenon whereby larger volumes of production reduce unit cost by distributing fixed costs over a larger quantity.
Efficient Consumer Response (ECR).
Communication between partners in the form of a structured set of messages and service segments starting with an interchange control header and ending with an interchange control trailer.
Criteria that define the data content and format requirements for specific business transactions (e.g., purchase orders).
A functional group of one or more EDI transactions that are sent to the same location in the same transmission, and are identified by a functional group header and trailer.
Electronic Data Interchange (EDI).
Electronic Data Interchange Association (EDIA).
Electronic Data Interchange for Administration, commerce, and Transport. The United Nations' EDI standard.
Efficient Consumer Response (ECR)
A demand-driven replenishment system designed to link all parties in the logistics channel to create a massive flow-through distribution network.
See Electronic Funds Transfer (EFT).
Electronic Commerce (EC)
Also written as e-commerce. Conducting business electronically via traditional EDI technologies, or online via the Internet.
Electronic Data Interchange (EDI)
Intercompany, computer-to-computer transmission of business information in a standard format.
Electronic Data Interchange Association
A national body that propagates and controls the use of EDI in a given country.
Electronic Funds Transfer (EFT)
A computerized system that processes financial transactions and information about these transactions or performs the exchange of value.
Electronic Mail (E-Mail)
The computer-to-computer exchange of messages. E-mail is usually unstructured (free-form) rather than in a structured format. X.400 has become the standard for e-mail exchange.
A prohibition upon exports or imports, either with specific products or specific countries.
Pertaining to a statement or formula based on experience or observation rather than on deduction or theory.
A product sold as a completed item or repair part; any item subject to a customer order or sales forecast. Synonym
Finished Goods Inventory.
The final buyer of the product who purchases the product for immediate use.
Inventory on hand that will satisfy future demand for products that are no longer in production at your company.
Engineer to Order
A process in which the manufacturing organization must first prepare (engineer) significant product or process documentation before manufacture may begin.
Engineering Change Order (ECO)
A documented and approved revision to a product or process specification.
A revision to a drawing or design released by engineering to modify or correct a part.
A term used for goods in transit or on the way to a destination.
Enterprise Application Integration (EAI)
A computer term for the tools and techniques used in linking ERP and other enterprise systems together. Linking systems is key for e-business. Gartner says "firms implementing enterprise applications spend at least 30% on point-to-point interfaces."
Enterprise Resource Planning (ERP) System
A class of software for planning and managing enterprise-wide the resources needed to take customer orders, ship them, account for them, and replenish all needed goods according to customer orders and forecasts. Often includes electronic commerce with suppliers. Examples of ERP systems are the application suites from SAP, Oracle, PeopleSoft, and others.
Environmentally Sensitive Engineering
Designing features in a product and its packaging that improve recycling, etc. It can include elimination of compounds that are hazardous to the environment.
Economic Order Quantity (EOQ).
EPC or ePC
Electronic Product Code. An electronically coded tag that is intended as an improvement to the UPC bar code system. The EPC is a 96-bit tag which contains a number called the global Trade Identification Number (GTIN). Unlike a UPC number, which only provides information specific to a group of products, the GTIN gives each product its own specific identifying number, giving greater accuracy in tracking.
An identifier assigned by the carrier to a piece of equipment. See also Container ID.
The process of placing equipment at a selected location.
The rolling stock carriers use to facilitate the transportation services that they provide, including containers, trucks, chassis, vessels, and airplanes, among others.
The science of creating workspaces and products which are human friendly to use.
Enterprise Resource Planning System (ERP).
Evaluated Receipts Settlement (ERS).
Early Supplier Involvement (ESI).
The Estimated Time of Arrival.
The Estimated Time of Departure.
A set of guidelines for proper conduct by business professionals.
Economic Value Added (EVA).
Evaluated Receipts Settlement (ERS)
A process for authorizing payment for goods based on actual receipts with purchase order data when price has already been negotiated. The basic premise behind ERS is that all of the information in an invoice has already been transmitted in the shipping documentation. Therefore, the invoice is eliminated and the shipping documentation is used to pay the vendor.
The price that the seller quotes applies only at the point of origin. The buyer takes possession of the shipment at the point of origin and bears all costs and risks associated with transporting the goods to the destination.
A deviation from the class rate; changes (exceptions) made to the classification.
Exclusive Patronage Agreements
A shipper agrees to use only a conference's member liner firms in return for a 10 to 15 percent rate reduction.
Vehicles that a carrier assigns to a specific shipper for its exclusive use.
A for-hire carrier that is free from economic regulation. Trucks hauling certain commodities are exempt from Interstate Commerce Commission economic regulation. By far, the largest portion of exempt carriers transports agricultural commodities or seafood.
Moving shipments through regular channels at an accelerated rate.
A computer program that mimics a human expert.
An enterprise that brings together buyer and seller for a fee, then eventually withdraws from the transaction.
Complying with rules for exporting products, including packaging, labeling, and documentation.
A document required by the U.S. Treasury department and completed by the exporter to show the value, weight, consignee, destination, etc., pertinent to the export shipment. The document serves two purposes
to gather trade statistics and to provide a control document if the goods require a valid export license.
A document secured from a government authorizing an exporter to export a specific quantity of a controlled commodity to a certain country. An export license is often required if a government has placed embargoes or other restrictions upon exports.
Export Management Company
A private firm that serves as the export department for several manufacturers, soliciting and transacting export business on behalf of its clients in return for a commission, salary, or a retainer plus commission.
Export Sales Contract
The initial document in any international transaction; it details the specifics of the sales agreement between the buyer and seller.
Export Trading Company
A firm that buys domestic products for sale overseas. A trading company takes title to the goods; an export-management company usually does not.
To send goods and services to another country.
Exporter Identification Number (EIN)
A number required for the exporter on the Shipper's Export Declaration. A corporation may use their Federal Employer Identification Number as issued by the IRS; individuals can use their Social Security Numbers.
(1) Carrier payment to its customers when ships, rail cars, or trailers are unloaded or loaded in less than the time allowed by contract and returned to the carrier for use. See Demurrage, Detention. (2) The use of priority package delivery to achieve overnight or second-day delivery.
The notion that supply chain partners form a larger entity which works together as though it were a single unit.
A situation where suppliers are viewed as an extension of the firm's manufacturing capabilities and capacities. The same practices and concerns that are commonly applied to the management of the firm's manufacturing system should also be applied to the management of the external factory.