absolute-minimum pricing: The lowest possible price at which goods can be sold.
account: A manufacturers' term for a retailer or wholesaler that buys and resells the manufacturer's products.
accounts payable: A retailer's or wholesaler's unpaid bills and invoices; the money owed to vendors and suppliers.
account planning: A manufacturer's business review for retail accounts that lays out the timing and scope for product promotions, deals and allowances for a coming year.
account receivable: Bills or invoices for goods or services; money owed by a customer.
account receivable: Bills or invoices for goods or services; money owed by a customer.
accrued inventory: An estimate of current inventory that is determined by subtracting the costs of the current inventory and goods sold from the cost of the original inventory.
ACH: Automated clearinghouse.
activity based costing (ABC): An accounting method that measures business profits and costs by taking into account both overhead and the cost of wasteful or inefficient practices two items that are not considered in conventional accounting methods.
activity based management (ABM): A management strategy used in Efficient Consumer Response (ECR), based on principles of activity based costing. See activity based costing; Efficient Consumer Response.
actual ship date (ASD): The actual date that products leave a manufacturer's plant or distribution center.
activity:Activity data are the measures for each item sold at a specific retailer in each store for a particular time period (interval).
actual ship date (ASD): The actual date that products leave a manufacturer's plant or distribution center.
ACV: All commodity volume.
ad actuals: A calculation of exact profits or losses resulting from an advertisement.
ADI: A Nielsen/Arbitron radio or television term that draws the boundaries of a station's area of dominant influence.
advance order: A retailer's order placed with a supplier for seasonal and new items before they are available.
Advance Ship Notice (ASN): The transaction set represented by the X.12 transaction code 856. This transaction set is sent by a supplier to notify a retailer of a shipment of products. It could be considered as an electronic packing list.
advertising allowance: Money that a manufacturer pays a wholesaler or retailer to advertise a product, brand or line. See cooperative advertising; cooperative merchandising allowance.
advisory board: A group of consumers or retailers that provides ideas about items to stock and merchandise. New products are tested by consumers.
agent: A manufacturer's employee or a network of brokers that directly sells products to retailers and/or wholesalers. See master broker; direct sale.
aisle captain or aisle clerk: A supervisor or person responsible for full shelves, merchandising and ordering.
all commodity volume (ACV): A retailer's total volume of sales, expressed as a percentage (or share) of the ACV; therefore a 30 percent ACV is a 30 percent share of the total market for that commodity.
allocate: A process that determines how much shelf space a product gets, using product movement and profitability as a guide.
allocation: A limit set by a manufacturer on the total amount of a retailer's or wholesaler's product order during a promotional period. See forced distribution.
allowance: A manufacturer's deal for wholesalers or retailers to advertise and/or merchandise specific product(s). Also known as a trade deal, promotion or a discount.
American National Standards Institute (ANSI): A nongovernmental association that formulates voluntary, national standards, such as electronic data interchange.
American Wholesale Marketers Association (AWMA): (Formerly, National Candy Wholesalers Association-NCWA) The National Candy Wholesalers Association and the National Association of Tobacco Distributors joined to form a single trade organization. 1128 16th St., N.W. Washington, DC 20036 (202) 463-2124
application identifier: A numeric prefix to a UCC/EAN-128 code that defines the encoded data to follow. Generally used as secondary codes to provide information not included in standard U.P.C. numbering, such as product dates, weights and lot/batch numbers. May also identify an
area of dominant influence (ADI): An Arbitron or Nielsen measure of a market of television viewers. An ADI includes all jurisdictions within a metro area, which can receive the signal of a particular station. The United States has over 200 ADIs.
archive:The process of storing older or previously processed data in a compressed format so that it can be accessed later if necessary. For example, POS or eService data that has been imported into Velocity is archived in zip files. All VMT products archive data using the "zip" compression method.
arrival notice: A sheet on a freight bill that notifies a recipient that a shipment has arrived at its destination.
as advertised: A sale price for an item featured in a weekly ad that is lower than the regular price.
attribute: A way to classify items and stores. You can use attributes to filter (include or exclude) the items or stores that you want to see on the dialog or include in a report. You can also use attributes to create groups and subgroups in reports.
With Velocity, you can create as many attributes as you need. For each attribute, you also create a set of values. For example, you could create an attribute "Toys" with the values "Beanie Babies," Comic Cards," and "Action Figures." Or an attribute "Size" with the values "Small," "Medium," and "Large." Attributes values are assigned to individual items and stores.
authorization or authorization to purchase: An approval for a category manager to purchase products, to store them in a warehouse and to list them in a store's order book.
authorization slip or authorization letter: A company form or letter that allows a broker or manufacturer's representative to call on a store manager or owner.
authorized items: Products that a company's headquarters authorizes for distribution to retailers or stores.
authorized list: A list of company-approved vendors and products.
authorized stock item: A product that company headquarters must approve for retailers or company stores to stock.
automatic distribution: A chain stores' and wholesale grocers' method to determine how many products and the amount of a product to deliver to retail stores, based on the retailers' market share and profitability, whether or not the retailer has a specific order. See forced dist
automatic ordering: A retail ordering method that automatically replenishes fast-moving items.
average inventory on hand: A calculation of the worth, expressed in dollars, of the inventory in a store that is determined by dividing the costs of goods sold by the number of retail/wholesale turns.
average item retail (AIR): The computed, average retail price of all products sold in a store.
average order: The amount of money a customer spends on each shopping trip.
averaging cost: A calculation that determines a product's current cost by adding a product's current cost to its replacement cost and dividing that sum by two.
AWMA: American Wholesale Marketers Association.
back order: Out-of-stock items that cannot be shipped with a customer's original order and are sent to the customer as soon as available.
backhaul: A transportation practice used to defray costs by picking up products from a manufacturer after delivering products to a store.
backroom: A storage area for excess products, kept on hand to restock the sales floor as needed.
backstock: Extra products stored in a backroom to restock shelves between deliveries.
backup: A copy of current computer files saved to a computer disk or magnetic tape in case of a computer system failure.
back-up merchandise: Products kept in a backroom for convenient restocking of the sales floor.
bag stuffer: An ad circular placed in a customer's grocery bag during bagging.
bandwidth: The data transfer rate of an electronic communications system.
banner: An in-store advertising sign or display used to identify in-store locations, sale items and products.
bar code: A unique identification code on products, pallets and coupons. The code is read by an electronic scanner for receiving, ordering and inventory control purposes. See UCC/EAN-128.
base price: A price calculated by taking a product's suggested retail price and subtracting a percentage.
basic items: Necessary, common, everyday household items, which customers expect to find in a grocery store.
basic stock list: A wholesalers' listing of products and brands. See rotation list.
bass scanning (price verification): The process of verifying retail prices and item descriptions in the Point of Sale System (register system).
bay: The bottom shelf in a retail aisle.
BB: Billback.
BCP: Broken Case Price.
benchmarking: A performance standard against which operating performance is measured, which is used to identify performance improvements and best practices in an industry.
best food day: The day that grocery ads run in a newspaper in any community.
beta test: A field test of new equipment or software programs to identify errors or problems, and to solicit user's comments so that the manufacturer can make final modifications before the equipment or software is released for sale.
bill and hold: A manufacturer's deal to a retailer to purchase products, which are not shipped until the retailer needs them.
bill of lading: A delivery receipt acknowledging that a customer received a product and verified the count.
billback (BB): An accounts receivable practice of invoicing the wholesale/retailer for products at regular price until promotional requirements are met. The deal amount will be returned later to the wholesaler/retailer.
billboard/billboard effect: The merchandising impact produced by grouping together a large quantity of horizontal facings on a shelf, i.e., sizes, colors and/or flavors.
bin: A merchandising container for bulk product display.
BISACBook Industry System Advisory Council—an EDI standard for the book industry.
blend/mix: The pricing of a defined section to achieve an overall profit percentage based on movement, unit profit and total sales of a section.
blind ordering: A practice of writing a new order even though an outstanding order has not been received.
blister pack: Product packaging that merchandises a product with a descriptive card under clear plastic wrap.
blocking (squaring down): The practice of dressing up shelves. Products are pulled forward to a shelf's edge from the back of the shelf.
blue chips: Products with high gross profits and high turnover on the shelves.
BOGO: Buy one get one free.
bonus pack: A volume increase in a package, a merchandising technique to establish value for a customer by packaging an extra amount in a product while charging the regular price.
booking: A practice retailers use to order in advance to obtain special discounts and guarantee the delivery date, usually for seasonal and holiday products.
bottom line: A term for a net profit, which is all money taken in (gross profit) minus all expenses.
bounce back: A product marketing technique that pairs a customer's refund with a rebate on a product .
bounce pattern: A diagrammed path showing where customers stop and/or select products.
box store: A limited-assortment store, which merchandises products in the original, cardboard shipping boxes.
bracket pricing: A price schedule based on the number of cases that a retailer orders the greater the quantity ordered, the lower the price per case. Also called a volume or quantity discount.
branch house: A redistribution center for a manufacturer or wholesaler.
brand: A product that is uniquely labeled by a manufacturer, private label or national brands, for example.
brand franchise: An exclusive contract between a manufacturer and a wholesaler or a retailer to distribute and sell products in a specific market.
brand image: Consumers' images of the quality, value and taste of a product.
brand loyalty: A level of consumer support for a product measured by the product's turnover.
brand share: A percentage of category sales attributed to a specific product brand.
bread & butter account: A consistent, high-volume product for a wholesaler or broker.
breakage allowance: A manufacturer's allowance to a wholesaler in case products are damaged during shipping.
break-even point: An accounting term used to distinguish the point at which gross sales equal operating costs.
broadside: An advertising term that refers to two facing newspaper pages in an ad.
broken case price (BCP): A price calculated by adding the cost of a product to the cost of labor to repack the product.
broker: An independent agent or representative of various noncompetitive products in a retail market who represents a manufacturer and presents products, sales and special deals to a retailer or wholesaler.
brokerage: A manufacturer's commission paid to a broker for the volume of products he or she sells to retailers or wholesalers.
broker's warehouse: A warehouse stocked with products and represented by a broker.
bulk product: Unpackaged, fresh products displayed in bins in large quantitites and sold by the piece or the pound, such as grains, candy or snacks.
bulletin: A communication to distribute information among different segments of an industry.
business review: A periodic meeting to review operational performance, goals and projections.
buy one get one free (BOGO): An offer that allows a customer to buy an item at regular price and get a second, identical item free.
buyer: A wholesale or retail employee who analyzes, selects and buys an appropriate product mix in a category.
buyer code: Your customer's item code. Velocity often refers to the buyer code as the SKU. Although buyer codes can exist at the unit level, inner level, and case level, you will normally only receive unit-level buyer codes.
buyer's slips: A paper or electronic form that a purchasing department uses to indicate to other departments the selection, quantity and delivery date of products.
buying committee: A management review committee that analyzes and selects new products, deals and special promotions. See advisory board; merchandising committee; plans committee.
buying co-op: A retailers' group formed to take advantage of lower prices on products, advertising and equipment through economies of scale.
buying corporation: A freelance company that resells products.
buying group: A group of non-competing retailers who analyze, select and purchase products and services, such as advertising and equipment together. Also called chain-owned buying group; affiliated chain.
buying habits: A profile of consumers' purchasing patterns and habits derived from analyzing data.
buying headquarters: A central location, where executives or other employees analyze and approve a mix of products for retailers and wholesalers to sell.
calendar marketing agreement (CMA): An agreement between a retailer and a manufacturer in which the retailer agrees to promote the manufacturer's products according to a specific schedule.
cannibalization: A competitive factor that reduces a product's sales, such as the debut of a competing brand.
CAO: Computer-assisted ordering.
case card: A sign used to identify products. Also called a stack card or header card.
case code: A universal product code (U.P.C.). A product 's unique, machine-readable numeral printed on a product, cases and pallet loads.
case cost: The wholesale cost of a case of products.
case count: A receiving procedure that accepts an invoice's total-order case count instead of verifying the contents of each case.
case cube: A standard measurement used to calculate a shipping container's volume.
case dollar return: A retailer's gross profit calculated by subtracting the wholesale cost of a case from the retail price of a case.
case labels: A product's identification and pricing label attached to a product or case when shipped.
case lot: Unopened cases of products sold at a set price.
case pack: The number of units of products packed in a case.
case ready: Packaged, prepared, refrigerated or frozen foods that go from a shipping container to a sales floor.
case, refrigerated: A refrigerated display unit for perishable products, such as dairy products or ice cream.
case stocking: A stocking procedure that removes a case lid and places a product on the shelf in an original container.
case weight: The total weight of a case, a product and its packaging.
case wrap-arounds: A decorative wrap around the base of a merchandising display. Also called base wrap.
cash-and-carry: A policy that requires a wholesaler or retailer to pay cash upon delivery.
cases selected: Includes only hard cases, that is, no repacks.
cash-and-carry wholesale grocer: A wholesaler that allows retailers to select, pay cash and transport their own orders.
cash discount: A percentage allowance deducted from an invoice under certain conditions, such as, two percent off the invoice if a customer pays the bill within ten days of receiving it.
cash flow: The increase or decrease of cash resources, permitting money to be available for working capital, investments, and other expenses.
carrier: A registered, licensed truck or rail company, which transports merchandise from one point to another. Also called a common carrier.
carry-in charge: A service delivery fee that vendors charge retailers to unload and stage products in a store.
carrying cost: The cost of the capital employed in holding an asset (such as inventory) calculated as an interest rate (internal borrowing rate or opportunity cost of capital) times the amount of capital employed.
case: A full case, or master carton, of an item or inners. Cases are used primarily for shipment. They are usually not available for retail purchase.
case-level code: An item code that represents a full case, or master carton, of an item. This is usually an I2of5 code on the outside of a carton that identifies the product and the number of units in the case.
category: A group of similar products; such as detergents, paper goods, etc.
category captain: Within a category, the manufacturer's representative responsible for analyzing the product movement, assortment, inventory levels, promotion, buying and profitability for a specific geographic area or an entire chain.
category development index (CDI): A trend analysis that indicates the pace of sales of a product category in an area.
category killer: A retailer, such as a mass merchandiser or a pet food superstore, able to undercut prices of most competitors because of high-volume sales.
category manager (CM): A person who analyzes product brands and mix, inventory levels, movement, shelf space allocation, promotions, buying, and profitability of a merchandise category.
category pricing: A pricing policy that is used to determine the retail price for all products in a category.
CBT: Computer-based training.
CDI: Category development index.
ceiling cost: A manufacturer's or supplier's limits to price increases on an item.
central billing: A headquarters accounting department that processes invoices.
central buying: A company headquarters' purchasing department.
cents-off: A manufacturer's practice of printing a cents-off coupon on a product label to boost sales for that product.
cents-off coupon: A certificate that provides for a cash refund or is deducted from the purchase price at the register.
certification sheet: A listing of on-hand inventory amounts signed by a manager and turned in at inventory time.
chain: A multi-unit retail operation with stores managed by a headquarters staff. Usually refers to a group of supermarkets under common ownership.
chain store: A retail operation of a group of 11 or more stores, which operate under a similar name under one corporate ownership.
channel of distribution: The producers and distributors of products from a farm to the table, a path that includes a grower, producer, manufacturer, broker, wholesaler, store and a consumer.
change agent: Groups or individuals who use their skills and relationships to lead and implement change in an organization.
chargeback: A manufacturer's bill to a retailer if the retailer fails to meet stated performance requirements.
check-in: Receiving, checking and signing for merchandise delivered.
circular: An advertisement that looks like a newspaper ad distributed to homes. Also called a handbill or a flier.
class of trade: A retail organization classed according to its method of doing business, such as a convenience store, supermarket, superstore, or a warehouse membership club.
classifications: The family groups of products that a retail food store displays and sells.
clearinghouse: A company that redeems consumer coupons from retailers and sends them to manufacturers for reimbursement.
client/server environment: A network of computers; client refers to the desktop terminal; the server to the central processing unit (CPU).
clipstrip: A display piece suspended from a gondola shelf, used to cross-merchandise small items.
close of business (COB): The last hour of a business day, or the last day of a week, month or year that business is conducted.
club store: A large retail store, (100,000 square feet or more), that sells only to members who pay an annual membership fee. Also referred to as a membership club store, warehouse club store or wholesale club.
cluster marketing: A strategy to market products in stores with similar demographics.
CM: Category manager.
CMA: Calendar marketing agreement.
COB: Close of business.
code number: An item number printed on a case or package by the manufacturer to indicate confidential information for pack identification or checking purposes. Accounts may use different code numbers to describe the same item.
COFC: Container on a flat car.
COGS: Cost of goods sold.
collateral material: Point-of-purchase and merchandising materials that support special sales efforts, such as seasonal or holiday promotions or a new product introduction.
color break: The use of contrasting colors of products to create an eye-catching display.
column inch: A newspaper measurement unit, one inch long and one column wide. Ad prices are multiplied by column inches.
co-marketing: A joint effort between a retailer and a manufacturer to promote products.
combination deal: A trade deal including at least two manufacturer's allowances, such as an advertising allowance and a purchasing allowance.
combination feature: Multiple products offered together at a single unit price.
combination rate: A media term for a special rate offered to companies that advertise in two or more publications, radio or television stations owned by the same company.
combination salesperson: An employee of a broker or a manufacturer who has both wholesale and retail sales responsibilities.
combination store: A food store and drugstore under one roof.
combo store: A complete, full-line self-service market at least 30,000 square feet or larger with annual sales of at least 10 million dollars, 40 percent of which is non foods.
common carrier: A transportation company, such as a rail line or trucking firm.
community or regional shopping center: A center anchored by one or more large department or discount stores.
company: A customer, vendor, third-party organization (such as a bank), or your own company. Typically, a company is one of your customers or your own company.
computer assisted ordering (CAO): A computer software program that keeps track of inventory and orders items as needed. Also called Computer-Aided Ordering.
computer-based training (CBT): An self-paced, interactive, computerized tutorial or training process.
computerized management system: An electronically controlled system that uses sensors to monitor and control a store's energy use.
customer: One of the four types of trading partner. A retailer for which you provide goods or services.
customer attribute: An attribute that represents a group of customer items in the way that your customer groups them, which is usually associated with a plan-o-gram.
customer count: The number of customer checkout transactions for a day or week.
customer count: The number of customer checkout transactions for a day or week.
customer loyalty: The degree to which a customer repeatedly shops a store for a majority of their purchases.
customer mix: For a store the number of customers of various types expressed as a percentage of the store's total number of customers. For a product the sales attributed to various types of customers expressed as a percentage of the product's total sales.
customer item: A customer item contains retailer-specific information about a product that you produce and is uniquely identified by the UPC or the retailer’s item code (SKU).
customer loyalty: The degree to which a customer repeatedly shops a store for a majority of their purchases.
customer mix: For a store the number of customers of various types expressed as a percentage of the store's total number of customers. For a product the sales attributed to various types of customers expressed as a percentage of the product's total sales.
customer unit loads: Unit loads consisting of one or more SKUs, possibly from several product categories, assembled by the seller according to terms of sale offered to the buyer. Also known as rainbow or mixed pallets.
cut: Items that are ordered, but not delivered because the warehouse is out of stock. These items should be re-ordered. Also called a product cut.
cut-case: A less-than-case-lot that a wholesaler sells to a retailer.
cut-case display: A method of merchandising and stocking products that uses the original packing case, with the top and/or sides removed, to display products.
cut-in: To make space on a shelf for new or promotional items.
cutthroat: Slashing prices well below the market average.
cutting: Opening or sampling a product to evaluate its appearance, flavor, quality and/or consistency.
cycle cleaning: Cleaning cases, shelves, bins and storage areas on a regular schedule to ensure cleanliness and sanitation.
cycle count: An inventory verification procedure performed at regular intervals at certain store aisles or sections.
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