Teaching Tip: Glossary of Supply Chain Terms

The Financial Times  (Nov. 22, 2022) has just issued a report called How Technology Can Help Redraw the Supply Chain Map . In it, the newspaper provides this useful glossary of current SCM terms for your students to keep handy.

Internet of things (IoT) The IoT consists of sensors that make goods “smart”. These can both send information and communicate with each other. The IoT is used in the supply chain for tracking and monitoring. (See p. 451 in your Heizer/Render/Munson text).

Blockchain Blockchain is also known as distributed ledger technology. It allows for the digital recording of transactions and tracking assets in a business network. It introduces trust where this is scarce. The verifiability of transactions can help to reduce fraud. (See p. 451 and 591).

Artificial intelligence (AI) and data analytics These involve statistics at a huge scale processed at a blistering speed. They can help with warehousing and inventory, improving sourcing relationships and predicting demand AI and machine learning. (See p. 823-831).

Machine Learning (ML) is a facet of AI that applies an algorithm to data. It then taps into previous experience and then accomplishes tasks without human involvement. The algorithms can, for instance, make predictions, form personalized recommendations and recognize images in photos. Examples of ML with which you may be familiar include TikTok recommendations, photo portrait recognition and sentence completion.

Robots and automation This covers the physical side of distribution centers and includes optimizing storage, moving stock and picking and packing. It is increasingly sophisticated. (See p. 277, 292, 371, 490).

3D printing This involves the creation of three-dimensional objects by a machine that uses a computer model. It applies layers of substrate (plastics, liquids or powders) to create physical goods. It allows for the making and replication of extremely complex shapes that cannot be constructed by hand. (See p. 170).