How does this apply to retail? Anchor stores are great neighbors to have if you’re a small or medium retailer. This list may restrict what types of order (by category, value or geographical location) can be placed with each of them, Arm’s-length trading relationshipA relationship between two parties who trade with each other in which there is no involvement other than the trade itself, AssetsThe value of everything an organisation owns, AuditA systematic inspection of a process or procedure to assess compliance with requirements or regulations, Audit trailA record, history or series of documents that provide evidence of a sequence of processes that led to an outcome, Back orderCustomer orders which cannot be immediately fulfilled and are awaiting future stock delivery/manufacture before fulfillment, Balanced scorecardAn approach to measuring performance that looks at multiple variables. the law of the land, ImpartialOpen-minded, without pre-determined ideas, and taking all views into account, Imperfect competitionA market structure where many companies are competing but each is selling a slightly different product, In-houseSomething conducted within an organisation by its own workforce, Inclusive pricePrice for the whole amount, including taxes, Incorporated companyA company that is treated in law as being distinct from its owner, INCO termsInternational commercial terms of sale that assign costs and responsibilities between the buyer and seller when delivering products, Independent demand stockFinished products whose demand (ordering levels) is not dependent on other items of stock, IndexA collection of data that can be used for comparison, e.g., The Dow Jones Index, Indirect cost/indirect spendCosts that are not directly incurred in the manufacture of a product or delivery of a service, e.g., insurance, Indirect suppliesServices, tools and equipment that do not form part of the finished product but are required to maintain the business and production process, e.g., repairs, stationery, consultancy, InducementSomething offered to persuade or influence an individual to conduct themselves or business in a certain way, InductionA person’s formal introduction to an organization and its procedures, InputResources used in the production of a product or creation of a service that lead to the desired ‘output’ (e.g., people, raw materials, information), Institute of Chartered Accounts of Scotland (ICAS)The world’s first professional body of chartered accountants, IntangibleSomething you cannot physically see or touch, Intangible costA cost to an organisation that is known but cannot be quantified, Integrated reportA short document about an organisation’s features and how this creates value in the short, medium and long term, Interest rateThe percentage of money that is required to be paid back in addition to money borrowed, or the percentage of money that is gained in addition to money saved, IntermodalShipments that utilise different modes of transport, e.g., a shipping container carried by lorry to a dock where it is loaded aboard a ship, Internal rate of returnThe means by which an investment or project is evaluated financially. These tools facilitate interactions between buyers and suppliers through the use of online negotiations, online auctions, reverse auctions, etc. Glossary of art terminology, with dictionary descriptions and definitions of common art, painting and sculpture words, phrases and terms. glossary of payment system terminology as a reference document for the standard terms used in ... of real-time processing is intrinsic to understanding the functioning of modern payment systems and figures in discussions among users and experts. According to Pine: What can you build with LEGO bricks? Learn more about EPOS for retail. It’s usually a well-known department store or retail chain. The first sector covers farming and raw materials, the second is manufacturing and the third covers the production and delivery of services, SharesThe means by which a business is apportioned among its owners, ShiftA change in either the quantity supplied, or the quantity demanded while the price remains the same, Shipping addressThe address to which deliveries are to be sent, Shop floorWithin manufacturing, the area where the goods are made, Signed offA process of approving a sample so that orders can be placed or produced, Silo thinkingWhen people within a department do not share their knowledge or ideas with others outside the department, Single administrative document (SAD)A standardised customs form used to control goods being moved in and out of the EU, Switzerland, Norway, Iceland, Turkey, Macedonia and Serbia, Slotting (or profiling)The process of identifying the most efficient placement for each item in a warehouse, Small- and medium-sized enterprise (SME)A small- or medium-sized enterprise that is independent of other companies and is defined in terms of the number of employees it has, SMARTSMART objectives are: Specific, Measurable, Achievable, Realistic, and Time bound, Social sustainabilityThe impact a business can have on people and communities and actions to make this a positive impact, Soft skillsSkills that may be taught but are more likely to develop with time and practice, for example, team working and good communication, SoftwareProgrammed code that makes computers (hardware) operate, Sole traderSomeone who has exclusive ownership of a business and can keep any surplus profits but is responsible for any losses, SpecificationA detailed description of what is required, Spend analyticsGathering, cleansing, classifying and assessing spend data, with the aim of making efficiencies and reducing costs, Spot buyingOne-off purchases or immediate requirements, common in domestic buying, Staged pricingPayment split into instalments across the period of the contract, Staggered deliveryThis is where a full order is broken down into smaller loads and delivered against a schedule, e.g., 40% delivered in Month 1, 60% delivered in Month 2, StakeholderAnyone with an interest, or stake, in the organisation or project, Standard deviationA statistical measure that captures the difference between the average and the outliers in a set of data, Standing ordersDocument setting out the internal rules of an organisation, StatutoryAn action that is required by and controlled by law, StewardshipCare and responsibility for minimizing a product’s environmental impact throughout all stages of the product life cycle, including end of life management, StockGoods, products or materials held for future use or supply, often called inventory, Stock keeping unit (SKU)An identification code for an item of inventory, usually displayed as a bar code linked to a database, StockoutWhen an inventory item is unavailable, StocktakeThe process of physically counting products in a warehouse to match them to the computerized inventory, Strategic business decisionsLong-term decisions often made by senior management which affect the future and direction of an organisation, Strategic coreA category of a buyer’s portfolio in which items have major consequences for the company if they are not available when needed, Strategic planA document that includes details of the organisation’s goals and the actions to be taken to achieve them, Strategic procurementThe practice of focusing on building long-term relationships with suppliers that could lead to a source of competitive advantage, StrategicHigh-level planning, usually related to long-term goals, SubjectiveIn the context of data, something is subjective if it is a matter of opinion, which may differ from one person to another, SubstitutesGoods which, as a result of changed conditions, may replace each other in the market, Subtract or outsourceTo employ another organisation to fulfil a contract or part of a contract, Supplier inspectionA way of testing a supplier’s product or service to confirm compliance with the standard set by the organisation, Supplier rankingA priority order of suppliers that can be used for sourcing, Supplier relationship management (SRM)Process for identifying all interactions with key suppliers and then managing them in a way that increases the value from the relationship for both parties, Supplier relationship manager (SRM)The role responsible for developing and maintaining supplier relationships, SupplyHow much or how many of a product or service an organisation has to sell, or, the act of physically getting something from the supplier to the buyer, Supply chainA network of individuals, organisations, technology, activities and resources working together to make sure goods or services reach the end user, SustainabilitySupporting future ecological balance by not harming the environment or depleting natural resources, Sustainability development goals (SDG)17 goals introduced by the United Nations General Assembly to achieve a better and more sustainable future for all, SustainablyIn a way that avoids the destruction of nature and helps to keep a good ecological balance, SynchronisationThe process of precisely co-ordinating or matching two or more activities, devices or processes in time, System-generated reference numberA reference number automatically assigned to a record in a computer system, SystemicAn attribute that applies to a whole system rather than one particular part of it, Tall structureAlso known as a hierarchical structure and based on a pyramid – every staff member has somebody to report to, TangibleSomething you can physically see or touch, Target audiencePeople or organisations at which products such as a film, advertisement or website is aimed, TariffA tax paid on a particular type of import or export, Technical (or conformance) specificationThe set of standards that a requirement must meet or exceed, Technology chasmThe gap between the early adopters and larger market segments such as early majority in a product life cycle, TelematicsInformation technology dealing with the long-distance transmission of computerised information, TenderA request from a buying organisation to invite suppliers to formally quote on a large value project, Term contractsContracts written to last a period of time and include agreed terms, Tertiary sectorThe third stage of the production and manufacturing process, where a service is delivered in industries, e.g., banking, communications and marketing, TestimonialA formal statement from a customer giving feedback about the product, service or company and often used for promotional purposes, The Carbon TrustAn independent, expert partner of leading organisations around the world, helping them contribute to and benefit from a more sustainable future through carbon reduction, resource efficiency strategies and commercialising low carbon technologies, The Greenhouse Gas Protocol (GHG Protocol) Corporate StandardThe most widely used international accounting tool for government and business leaders to understand, quantify, and manage greenhouse gas emissions, Third-party auditAn inspection of an organisation by an independent company or body, Third-party logistics (3PL)The use of third-party businesses to outsource part or all of an organisation’s fulfilment, logistics, transport, warehousing or distribution, Third-sector organisations (TSOs)Not-for-profit, non-governmental organisations run with the aim of achieving social goals, such as charities or community groups, ThresholdIn the procurement context, an upper limit to the amount a contract may cost without certain legal requirements coming into force, ToolingCutting tools, moulds, fixtures of accessories needed on a machine to manufacture a product, Total cost approachAn approach that considers all the costs associated with procuring an item, Total cost of ownership (TCO)A structured approach to calculating the full costs associated with buying and using an asset or acquisition over its entire life cycle, Total costsThe total amount of costs spent, including fixed, variable, direct and indirect costs, Total quality management (TQM)Efforts of all departments within an organisation to improve processes, products and services, Trade bodyAn organisation that represents and works for a particular group of individuals or companies, with a specific industry focus, is usually funded by them, TranscendentalPre-supposed and beyond practically gained experience, Transformational step changeAn organisational change that is significant and carried out over a period of time, TransparencyOperating in such a way that everyone can see the actions performed, TurnoverThe amount of money taken by a business in a particular period, UnambiguousClear and not open to interpretation, Unincorporated companyA company in which there is no legal distinction between the company and its owner, UnionA group of workers joined together in a specific type of organisation for the purpose of improving working conditions, Unit loadA standard unit that combines individual items to ensure easy and efficient handling, Up-skillIncrease the ability of an individual through training and personal development, Upstream environmental factorsImpacts on the environment caused by the extraction of raw materials or the manufacture of goods being purchased, Value added tax (VAT)An indirect tax collected by sellers at every stage in the supply chain, based on the value added at each stage of a product’s or service’s production or distribution, Value propositionsThe attributes of a product or service that makes it attractive to customers, Variable costsCosts that change with the output of the organisation, Variant bidA tender offer that does not quite match the specification of contract terms, but has been authorised as a secondary offer from a supplier. Happy selling! Trade Promotion refers to marketing activities that are executed in retail between these two partners. Then you must work with each individual customer, creating a design experience through some sort of design tool that helps customers figure out what they want. Cost centreArea of the business or budget to which the purchase needs charging, Cost driverAnything that means the cost of a good or service will change, Cost of goods sold (COGS)The direct costs for producing goods, i.e. the length of time during which the contract operates). Etailers come in all shapes and sizes, from big name giants such as Amazon and Zappos to neighborhood mom & pop stores selling items on their website. Remember that product positioning can influence consumers’ purchases, so planning how they’re displayed and organized can maximize sales. These retailers bring the best of both worlds into their business. This term refers to the practice of selling only to a specific market segment. Flash sales can last anywhere from several hours to a couple of days and entice consumers with huge bargains (usually 50% and up). These stores can be set up in empty retail spaces, mall booths, or even in the middle of a park. It excludes and distribution or sales costs, CostsThe amount of money that has gone out of the business, Counter-offerA response to an offer that is different from the original, Credit limitThe amount of money an organisation can borrow from a creditor, Credit noteA document issued to correct mistakes on an invoice – a credit note reduces the amount owed on the invoice document, Credit ratingA score given to an organisation which is based on the amount of risk they propose to the debtor, Cross dockingA logistics procedure where incoming products are loaded directly onto an outgoing carrier with minimal handling and storage time, Cross-functional teamsTeams that involve individuals from different departments that work together towards a common goal, CultureThe shared values, practices and beliefs within an organisation that determine how its procedures are carried out and how it is run overall, CustomerThe person who purchases and pays for (but doesn’t necessarily use) a product or service, Customer relationship management (CRM) systemA database to keep track of customers, contacts and a record of transactions, CustomsThe area of government that controls and administers policies and procedures for the import and export of goods, DecarbonisationThe reduction or removal of carbon dioxide from energy sources, DecommissionThe activities performed to take a product or service out of use and make it unavailable to customers, DegrowthA downscaling of production and consumption, DemandHow much or many of a product or service customers are prepared to buy at different prices, Demand curveA graphical representation of how price changes with changes in the demand for an item, DemographicsThe type, age, culture, interests and financial position of people, Dependent demand stockRaw materials or component parts whose demand (ordering levels) is influenced by demand for the finished product, DepreciationThe reduction over time in the value of an asset held by a company, often due to wear and tear. That’s why customers are encouraged to shop early and shop fast, so they can get their hands on the widest selection. This resource keeps you up to date with all the terms, concepts, and trends that are powering modern retail. AbbreviationsShortened forms of a set of words, consisting of initial letters pronounced separately, for example, invitation to tender (ITT), ABC classificationA system of prioritising different types of inventory based on their value or importance to the business, Acceptance criteriaIndicators or measures used to assess whether a product or service meets the standard required, Acceptance samplingA measure, using the number of defects detected, that determines whether a batch of manufactured products meets the standard required, AccreditationA process of external verification to provide evidence that a standard of quality has been achieved, for example, competency, authority or credibility, AccrualsAn adjustment made to the accounts of a company that has the effect of putting aside money for future use. 2. Analyze the demand in your market to determine the items that you should keep in stock. An LBO is the purchase of a company using borrowed funds. This is the main checkout area of a retail store. We at Modern Trade Solutions are in to providing distribution services to modern trade formats across Mumbai, Navi Mumbai, Thane & Panvel Areas. EMV was developed Europay®, Mastercard® and Visa® (hence the name) as a way to combat fraud. Global Standard for Procurement and Supply. An amount for this is treated as a cost in a company’s annual accounts, Depreciation chargeThe amount of money by which annual accounts are adjusted to reflect the cost of a reduction in the value of assets. The mean is calculated by adding all of the values together, then dividing by the number of values, Method statementA plan or procedure that details how a process or task will be carried out, Micro environmentFactors that directly influence an organisation’s success, such as competitors, suppliers, employees and customers, Micro-, Small and Medium Enterprises (MSME)The expansion of SME to include microbusinesses, which are usually defined as having fewer than ten employees, Middle majorityA group of consumers who buy or use a new product or technology after seeing it used successfully by innovators and early adopters, MilestonesImportant stages or events within a process, Mini-competitionA limited tender exercise, usually only on price, under the rules set out in a framework agreement; only suppliers appointed to the framework are able to take part, Minimum order quantity (MOQ)The smallest amount of a product a buyer can order from the supplier, MinutesA written record of a meeting, stating when it took place, who was present, what was discussed and what actions have been agreed, Mission statementShort statement setting out an organisation’s purpose, Mitigation/mitigating actionAn action that reduces the severity of an outcome, Mixed loadsThis is where a vehicle contains more than one type of product, MobilisationWhen a contract shifts from one supplier to another, Modern-day slaveryThe act of forcing people to work in poor conditions for little or no money, MonopolyA situation in a market where one organization controls the supply of goods or services and new entrants find it difficult to enter the market, MoonlightingPaid work from a second job that is done without a main employer’s consent, MovementsA shift in demand or supply, or price, Multilateral trade agreementsAn exchange agreement between more than two nations or trading groups that gives each group favoured trade status connected to certain goods obtained from the signatories, MultilingualIn or using several different languages, Multi-nationalsOrganisations that have facilities and assets in more than one country, Net amountTotal amount payable excluding taxes, New Engineering Contract (NEC)A family of standard contracts used in construction in the UK, Non-cashable savingsOne-time savings that do not reduce the ongoing future budget, Non-governmental organisation (NGO)A non profit organisation that operates independently of any government, Non-linear pricingThe unit price does change as the quantity ordered changes, Non-verbal communicationsUsing pictures, facial expressions or body language to convey information, ObjectiveIn the context of data, something is objective if it is pure fact, with no opinion or interpretation attached to it, ObligationsIn terms of a contract, the actions that each party must carry out, ObsolescenceThe state of becoming discontinued, outdated or no longer useful, Obsolescent stockStock that is outdated and no longer useful, Occupational Health & Safety Agency (OHSA)A USA governmental regulatory agency, Off-the-shelfGoods or services that are readily available and not made to order, OfferAn invitation communicated by one party to another to enter into a legal contract, OfficersPositions appointed by the Board of Directors. 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