3PL

 "Third-Party Logistics"

A supplier of logistics services that is not part of either the purchaser's or supplier's organizations.

4 PL

Fourth Party Logistics Provider 

An entity established to provide the management of both inbound and outbound materials, parts, supplies and finished goods for other organizations. A 4PL is often a separate entity established as a joint venture or long-term contract between a primary client and one or more partners that acts as a single interface between the client and multiple logistics service providers. Ideally, all aspects of the client's supply chain are managed by the 4PL.

Five S

5S

A process improvement method that offers a practical approach to improvements, whether at the office, logistics function or the warehouse. By assigning everything a location, time is not wasted looking for items. It is a concept that originated with the Japanese and has five rules: Seiri, Seiton, Seiso, Seiketsu, Shitsuke.

Seiri

Seiton

Seiso

Seiketsu

Suitsuke

Seiri The first 5S rule, sort, calls for the organization to keep only essential items that can be stored efficiently. This makes the workplace free of clutter, which encourages productive work.

SeitonThe second 5S rule, set in order, calls for the organization to focus on the concept of an orderly workplace and keeping items where they will be used.

Sesio The third 5S rule, shine, calls for the organization to keep the workplace clean and neat.

Seiketsu The fourth 5S rule, standardize, calls for the organization to standardize work practices so that individuals know what their responsibilities are.

Suitsuke The fifth 5S rule, sustain, calls for the organization to continuously improve and train.

80/20 Rule

Also known as the Pareto Rule, it is the finding that a minority of a population account for the majority of a given effect. For example, in inventory management, 20% of the inventoried items account for 80% of the total dollars.