ERP Definitions
This glossary explains the meaning of key words and phrases that information technology (IT) and business professionals use when discussing ERP and related software products. You can find additional definitions by visiting WhatIs.com or using the search box below.
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T
traceability
Traceability, in supply chain traceability, is the ability to identify, track and trace elements of a product or substance as it moves along the supply chain from raw goods to finished products.
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transportation management system (TMS)
A transportation management system (TMS) is specialized software for planning, executing and optimizing the shipment of goods.
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two-tier ERP
Two-tier ERP is a technology strategy taken by large, multinational enterprises that uses tier 1 ERP for financials and other core common processes at the corporate level and tier 2 ERP for divisions, subsidiaries and smaller locations of the company to address specific needs.
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U
upcharge
An upcharge is an additional fee that is added to a bill after a contract has already been negotiated.
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V
value driver
A value driver is an activity or capability that adds worth to a product, service or brand. One of the key ideas in defining value drivers is determining which factors provide the organization in question with a competitive edge.
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value stream mapping
Value stream mapping is a lean manufacturing tool that visualizes every repeatable step required to deliver a product or service to the customer.
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vendor-managed inventory (VMI)
Vendor-managed inventory (VMI) is an inventory management technique in which a supplier of goods, usually the manufacturer, is responsible for optimizing the inventory held by a distributor.
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voice user interface (VUI)
Voice user interface (VUI) is speech recognition technology that allows people to interact with a computer, smartphone or other device through voice commands. Apple's Siri, Amazon's Alexa, Google's Assistant and Microsoft's Cortana are prime examples of VUIs.
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W
Warehouse control system (WCS)
Warehouse control system (WCS) is a software application for orchestrating activity flow within a warehouses and distribution center.
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warehouse management system (WMS)
A warehouse management system (WMS) consists of software and processes that allow organizations to control and administer warehouse operations from the time goods or materials enter a warehouse until they move out.
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work in progress (WIP)
Work in progress (WIP), also called work in process, is inventory that has begun the manufacturing process and is no longer included in raw materials inventory but is not yet a completed product.
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working capital
Working capital is the difference between a business's current assets and current liabilities.