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  • SIC Code - Standard Industrial Classification

    It is a 4-digit system created by the USA in 1937 to keep track of economic activities in different industries. The USA, Canada, and Mexico, the stakeholders of North American Trade, renewed this system for themselves in 1997 and replaced it with the 6-digit NAICS (North American Industry Classification System) due to its limits. SIC Code structure; It has a hierarchical structure The first 2 digits indicate the 10 main sectors. Digits 3 and 4 indicate subgroups - For example; 3672 (Ref: https://en.wikipedia.org/wiki/Standard_Industrial_Classification) 36 => Electronic and Other Equipment 7 => Electronic, Component, and Accessories 2 => Printed Circuit Boards Usage areas; Banks; To determine the sectors of the companies to which they will lend and the regulations and risks in these sectors. Companies; To determine tax regulations Marketing teams; To identify the commercial target audience Companies; To identify competitors operating in the same field To check tax regulations on a sectoral basis State; To determine the regulations on a sectoral basis SIC Code Search Screen: https://www.osha.gov/pls/imis/sicsearch.html SIC Code List: https://www.osha.gov/pls/imis/sic_manual.html References Investopedia Wikipedia Library of Congress

  • GPC - Global Positioning Code

    GPC Code Set; The Brussels/Belgium-based GS1 Community owns it. It is a code set that has been growing continuously since 2007 and is structured under The Global Data Synchronization Network (GDSN) for this purpose. It is a standardized global code system used in the retail industry. It is constantly updated with requests from users. Appropriate code can be found at https://www.gs1.org/services/gpc-browser. Hierarchy; GDSN => Global Data Synchronization Network => Synchronized Database GPC => Global Product Code => Classification Code => Milk GTIN => Global Trade Item Number => Identification Code => xBrand Milk – Whole Milk – 1 lt GDSN Features [1] Standardized and Automated, continuous synchronization between stakeholders Industry experience is utilized as it is constantly updated in light of feedback gathered from stakeholders in the industry. GPC (Global Product Code) Features; Structured in English and translated into 12 languages (no Turkish). It is product-oriented. Due to its hierarchical structure, it offers efficient, accurate, and flexible use. It is a Classification Code, not an Identification Code. Classification Code => Milk Identification Code => İçim Milk – Yam Fat – 1 lt It is the retail industry standard. Segment => Industry => Dairy products Family => Segment separation => Milk Class => Classification of products in the same category => Milk and Brick => product category Brick Attribute 1 => Subgroup 1 Brick Attribute 2 => Subgroup 2 GTIN Properties (Global Trade Item Number) [2] Used in barcodes and RFID GTIN is a member of the EAN.UCC Code family. Varieties In North America. It is used in POS Devices. 12 Digits => UPC-A Outside of North America (Ex: Türkiye). It is used in POS Devices. 8 Digits => EAN/UCC-8 (Especially used in monopoly products) 13 Digits => EAN/UCC-13 (used in most retail products) Indicates different types of packaging. Not used in POS Devices. 14 Digits => EAN/UCC-14 or ITF-14 (thicker lines than EAN-13) GPC Advantages; Provides speed and accuracy of data exchange with other stakeholders using the same code Industry experience is utilized as it is constantly updated in light of feedback gathered from stakeholders in the industry. Using GPC; Because the same product may have more than one close description, careful research is required, assuming the code will definitely exist. Useful Links; GTIN Management Standart https://www.gtin.info/gtin-management-standard/ GS1 Databar explanation https://www.databar-barcode.info/ References [1] "GS1 and scanner," [Online]. Available: https://www.unece.org/fileadmin/DAM/stats/documents/ece/ces/ge.22/2014/WS4/WS4_02_GS1_and_scanner_data.pdf. [Accessed 27 08 2020]. [2] "GTIN Definition," [Online]. Available: https://www.gtin.info/. [Accessed 27 08 2020].

  • UNSPSC - United Nations Standard Product and Service Code

    When we choose to use a proven code set instead of recreating the material code system, one of the alternatives is the UNSPSC Code Set. Chronology; In 1998, under the auspices of the United Nations Development Program (UNDP), Dun & Bradstreet (D&B) and Inter-Agency Procurement Services Office (IAPSO) groups led the United Nations Common Procurement Code (CPC) and Dun & Bradstreet's Standard Product and Service Codes (SPSC). A Code Conversion Team was formed to combine the ) code sets. The Code Transformation Team created the UNSPSC Code Set after stages such as unification, simplification, and taking the stakeholders' opinions. Features; It is a Classification Code, not an Identification Code. -- Classification Code => Rebar -- Identification Code => Rebar – A500 – DIA:32 It is a multisector standard Consists of 2 digits x 4 scatter = 8 digit coding (+ Optional 1 scatter x 2 digits) Product-oriented Due to its hierarchical structure, it offers efficient, accurate, and flexible usage. The Code set is usually updated once a year, even if no update requests are received. In case of need for additional information, a quick response can be obtained by contacting info@UNSPSC.org . It is financed by the annual dues it receives from its members. As of February 2020, there are 156,478 codes (Wiki_UNSPSC). All definitions are written in English but translated into 14 languages (not Turkish). Advantages; Firms provide a serious economy because they do not have to bother to set up their own code sets. Provides speed and accuracy of data exchange with other stakeholders using the same code Industry experience is utilized as it is constantly updated in light of feedback gathered from stakeholders in the industry. Usage; Since the same product can have more than one close description, careful research is required, assuming that the code will definitely exist. In updates, if the code has changed; -- Changed_ID => Legacy Code -- Effective_ID => Current Code Sample Code; Battery Comparison of different code structures (Ref: UNSPSC White Paper); Adoption Curve Graphic: https://www.verdantis.com/downloads/whitepapers/adopting-unspsc.pdf Those who use this system in the world; General Electric Deutsche Telecom Big software companies that implement it (Robert Handfield) HANDLE Oracle Lawson McKesson What needs to be done to use it; Creation of the team to implement the new code system Determining the codes of the products according to the new code system Application of the code system to the ERP system in use Meeting with all stakeholders and ensuring that they also use this code system Instant sharing of the structured code system with stakeholders at each update References https://www.unspsc.org/ Robert Handfield. The Lowly UNSPSC Is Moving up in the Supply Chain World! NC State University. [Online] [Cited: 08 20, 2020.] https://scm.ncsu.edu/scm-articles/article/the-lowly-unspsc-come-uppance-in-the-supply-chain-world. UNSPSC. Wikipedia. [Online] [Cited: 08 20, 2020.] https://en.wikipedia.org/wiki/UNSPSC.

  • Stop-Gap

    In cases where sudden changes are seen, it should be taken in order to reduce the Bullwhip Effect, Fast additional ordering, Temporary order cancellation or modification, Supplier change, Strategy change, etc. They are temporary arrangements made to circumvent the process until decisions are taken. The same measures are taken as the Bullwhip Effect to increase its effectiveness. References https://www.benchmarksixsigma.com/forum/topic/35256-stop-gap-arrangement/

  • Cross Docking

    To shorten the delivery time, products from suppliers X, Y, and Z are combined as XYZ on a buyer basis without taking them into stock. It is a combination of initial stocking and handling processes. Cross Docking types; CML - Cross-Dock-Managed-Load JML - Joint-Managed-Load SML - Supplier-Managed-Load (closest to Just In Time (JIT)) The situations in which it is used; Where demand is stable In products where shelf life is important Where buyers receive different products in a mixture Benefits; It shortens the time and distance of personnel and equipment required for product preparation. Reduced product circulation distance minimizes the possibility of damage to the stock area. Contributes to a reduction in stock volumes and shorter order response times, thanks to shorter make-to-delivery times Reduces errors caused by rapid product preparation Reduces the need for stock space required Thanks to all these, it provides a cost advantage. Points to be considered; Arrangement of the distribution center as I, T, or X for this purpose (Ref: What Is Cross Docking?) Use of appropriate software and labeling system Organizing teams by this system Difficulties; Requires a more sophisticated organization than a standard distribution center The difficulty of standardization in pallets Graphical Representation of Cross Docking Ref: https://www.creativesafetysupply.com/articles/understanding-cross-docking/ Cross Docking Summary Ref: https://www.youtube.com/embed/MlvWcr0sOEo References · https://en.wikipedia.org/wiki/Cross-docking

  • HeadHaul & BackHaul

    HeadHaul is the process between the first loading point of the vehicle and the final unloading in Logistics operations. BackHaul, on the other hand, is returning the vehicle to the first exit point after unloading the cargo in Logistics operations. In this process, called deadhead in a sense, fuel, time, and opportunity costs arise, which are the highest costs of the logistics operation. KPI from the perspective of the construction industry; Occupancy rate KPI: Occupancy rate of vehicles x km driven Ways to minimize BackHaul cost; Use of 3rd Party Logistics companies MilkRun Approach Using sophisticated LoadBoard software Although it is a bit of a utopia, HeadHaul cooperates with other market companies on routes with low KPIs. References https://www.txintlfreight.com/faq-article/what-is-a-backhaul-in-logistics/#:~:text=A%20backhaul%2C%20as%20it%20relates,when%20it%20comes%20to%20backhauls. https://www.inboundlogistics.com/cms/article/stop-calling-it-backhaul/ https://blog.intekfreight-logistics.com/definition-headhaul-backhaul-importance-to-freight-pricing https://www.redwoodlogistics.com/how-to-save-money-with-your-backhauls/

  • MilkRun

    The movement of goods is a significant cost item with the lowest added value in all sectors. To minimize the said time and cash costs, companies use the MilkRun system whenever possible. In logistics operations, it is an approach that ensures the most efficient use of the relevant transport mode (Land, Air, Sea, Railroad) by sequential cargo transportation between multiple interconnected points instead of a vehicle going from point A to point B and back. Another usage area of the system is to support the Just In Time (JIT) system with the help of equipment such as the “Tugger Train” in the production facility (intralogistics). Proper configuration of logistics networks (internal and external) for Milkrun to function is the most challenging part of this approach. Required configurations; Adaptation of stakeholders (internal groups, suppliers, manufacturers, external logistics service providers, etc.) to the system Arrangement of routes through which distribution networks will pass Adjusting the loads to be transported according to the transport vehicle Preparation of systems such as BarCode / QR Code / RFID for fast loading and unloading Automate as much as possible Advantages; Reduction of indirect costs caused by transportation and transportation Simplification of physical processes (software processes are becoming sophisticated) Positive impact on carbon footprint Disadvantages; Requires sophisticated software and needs to be updated periodically The need for re-planning and reorganization of processes and even stockpile setup

  • ISO 3166 - Country Coding System

    It is a code system developed for use in official elements such as the license plates of countries. In this way, countries and even cities/states can be separated quickly. Types; Alpha-2 > 2-digit alphabetic code > Ex: TR > Format used as standard and also used in license plates Alpha-3 > 3-digit alphabetic code > For example: TUR > Code form that shows the country name more Numeric Code > Ex: 792 Sub Codes > TR-56 > Siirt References https://www.iso.org/iso-3166-country-codes.html https://www.iso.org/glossary-for-iso-3166.html https://en.wikipedia.org/wiki/ISO_3166-2:TR

  • TLC - Total Landed Cost

    It is a calculation method that helps to make the right choice among the alternatives by calculating all the direct and indirect costs of a product or service to be sold together. In Total Cost of Ownership, the calculation of immovables, equipment, and similar items that will be owned in the short or long term, not to be sold, is calculated.

  • SCV - Supply Chain Visibility

    It is the forward and backward sharing of information between stakeholders within the supply chain in an accurate and timely manner. Benefits; Being able to foresee the problems that the remote stakeholders will experience (See: Broken Supply Chain of Ericsson) Faster fulfillment of consumer demands Being least affected by country-based regulatory changes (For example, US embargo on China) etc.

  • ISO 6346 - Container Check Digit

    In container numbering, it is a control number that results from a mathematical process that is used to check the correctness of the written sequence. This control system can be an inspiration for many different fields so that typographical errors can be prevented. For a detailed explanation, visit the Wikipedia page. References https://en.wikipedia.org/wiki/ISO_6346

  • EOQ - Economic Order Quantity

    The Economic Order Quantity calculation, used to find the Order Trigger Point in Minimum Stock Management, helps find the optimum order quantity by combining cost points such as stock holding, shipping cost, and operational transactions. References https://corporatefinanceinstitute.com/resources/knowledge/finance/what-is-eoq-formula/

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