Supply Chain Glossary – S Letter

This glossary covers key Supply Chain Management (SCM) terms essential for optimizing efficiency and customer satisfaction. It includes concepts such as strategic sourcing, safety stock, sustainability initiatives, supplier relationship management, and Six Sigma. Understanding these terms helps in enhancing supply chain operations, improving relationships with suppliers, and implementing eco-friendly practices.





  • Supply Chain Management (SCM): SCM encompasses the planning, execution, and control of all supply chain activities to optimize efficiency and customer satisfaction.
  • Strategic Sourcing: Strategic sourcing involves identifying and selecting suppliers to achieve cost savings, quality, and performance goals.
  • Safety Stock: Safety stock is extra inventory held to buffer against unexpected demand fluctuations or supply disruptions.
  • Sustainability Initiatives: Sustainability initiatives promote eco-friendly practices and reduce environmental impacts in operations and supply chains.
  • Supplier Relationship Management (SRM): SRM focuses on managing and improving relationships with suppliers to enhance collaboration and performance.
  • Six Sigma: Six Sigma is a methodology for improving processes and reducing defects by minimizing variation and improving quality.
  • Sales and Operations Planning (S&OP): S&OP aligns sales and production plans to ensure demand and supply balance.
  • Supply Chain Visibility: Supply chain visibility provides real-time insight into the status and movement of goods in the supply chain.
  • Sustainable Procurement: Sustainable procurement considers environmental and social factors when selecting suppliers and products.
  • Synchronous Manufacturing: Synchronous manufacturing optimizes production processes to reduce lead times and improve efficiency.
  • Stock Keeping Unit (SKU): An SKU is a unique code assigned to each product variant to track inventory and sales.
  • Supplier Auditing: Supplier auditing assesses supplier performance and compliance with quality and contract requirements.
  • Service Level Agreement (SLA): An SLA defines the terms, responsibilities, and performance expectations in supplier contracts.
  • Supply Chain Analytics: Supply chain analytics uses data analysis to improve supply chain decision-making and performance.
  • Supplier Collaboration: Supplier collaboration involves working closely with suppliers to drive innovation and mutual benefit.
  • Statistical Process Control (SPC): SPC uses statistical methods to monitor and control processes, ensuring they meet quality standards.
  • Strategic Inventory Management: Strategic inventory management optimizes inventory levels to balance cost and service levels.
  • Single Sourcing: Single sourcing relies on a single supplier for a specific product or component, reducing complexity and costs.
  • Smart Manufacturing: Smart manufacturing integrates technology, data, and automation to enhance manufacturing processes and efficiency.
  • Safety Culture: Safety culture prioritizes a safe working environment and encourages safe behaviors among employees.
  • Supplier Performance Metrics: Supplier performance metrics measure supplier quality, delivery, and overall performance.
  • Supply Chain Optimization: Supply chain optimization seeks to maximize efficiency and reduce costs across the entire supply chain network.
  • Sequential Manufacturing: Sequential manufacturing organizes production processes in a linear, step-by-step fashion.
  • Supplier Qualification: Supplier qualification assesses suppliers’ capabilities and compliance with quality and regulatory standards.
  • Supply Chain Resilience: Supply chain resilience is the ability to withstand and recover from disruptions or crises.
  • Stockout: A stockout occurs when a product is temporarily unavailable due to insufficient inventory.
  • Strategic Capacity Planning: Strategic capacity planning ensures that facilities and resources align with long-term production needs.
  • Supplier Diversity: Supplier diversity promotes sourcing from a variety of suppliers, including minority-owned and small businesses.
  • Supply Chain Integration: Supply chain integration connects various supply chain partners and processes for seamless coordination.
  • Supplier Risk Management: Supplier risk management identifies and mitigates risks associated with supplier relationships.
  • Supply Chain Network Design: Supply chain network design optimizes the configuration of distribution centers and transportation routes.
  • Storekeeper: A storekeeper is responsible for managing the storage, issuance, and inventory control of goods in a warehouse, ensuring operational efficiency and accurate record-keeping.