1MMOne months moving total, or a rolling month total
3MMthree months moving total, or a rolling 3 month total
5FSTheory of Constraints five focussing steps
6MMSix months moving total, or a rolling 6 month total
Above the lineCommunication to shoppers and consumer outside the store, like TV adverts or social media
All commodity volumeThe total sales value across all the product being sold
Analysis horizonThe amount of historic time periods used to perform an analysis with
AvailabilityThe degree to which stock is available for sale
B2B Business to Business - trading model
B2CBusiness to consumer - trading model
BannerA grouping of points-of-sale within a customer to serve a particular set of shoppers. A customer may have multiple banners.
Below the lineCommunication to shoppers and consumer within a store or point of sale, like an online buy-box prompt or a shelf talker in a brick-and-mortar store.
BOGOFBuy-one-get-one-free
Brand indifferenceThe ratio of stable category gain over total category size when brand indifferent shoppers are in play
Brand indifferent shopperA type of shopper which has no loyalty to any particular brand, and buys whichever one is on promotion at the time
Buy-in profileThe manner in which a customer buys in stock in preparation for, during, and after a promotion or price increase
CAGRCompound Annual Growth Rate
CANGCannibalized Sales Gain
CANLCannibalized Lost Sales
Catchment area (customer focus)The geography served by a point of sale
Catchment area (product focus)The points-of-sale used to bring a product to market
CCPMTheory of Constraints Critical Chain Project Management
Challenger competitorChallengers provide competitive pricing and unique features to the market in the hope to become a mainstream competitor
ChannelA collection of simlarly operating customers to serve a particular kind of shopper
Channel conflictThe cannibalization that occurs between customers when a particular customer promotes a product
ClashingClashing occurs when two competing products are on promotion at the same time in the same customer node
CMPCustomer Margin Protection
COMPBDegree of brand competition
COMPCCDegree of channel competition
CompetitionThe degree to a shopper has multiple points-of-sale for the same product
Competitive SetThe collection of competing products
CompetitorAn alternative and similar product of a different brand available to the same shopper
ComplianceThe degree to which, and number of, points of sale that runs promotions as planned and apply regular prices as planned.
COMPLWWeighted Compliance
COMPNNumber of new entrants
COMPRNumber of exiting entrants
ConsumerThe ultimate person using a product
Consumer Packaged GoodsTypically non-durable goods shoppers buy for immediate or near-term consumption or use, like food
Consumption occasionRefers to why the product or service is bought and when it is to be used or consumed
Contribution ClassA metric used to define a market segment by price and revenue and/or volume share
CPGConsumer Packaged Goods Industry. Typically non-durable goods shoppers buy for immediate or near-term consumption or use, like food
CPIConsumer Price Inflation
Cross elasticityThe impact on the deamnd of a product when a competitive product change price
CRPCapacity Requirement Planning
CTCCash-to-cash Cycle Time
CustomerThe key entity in the route to market to make products available for sale to shoppers, like retailers
Cycle dealA promotion of which the price is the typical reduced price as per the price mandate
Days CoverThe number of days that stock on hand is expected to last
DBRTheory of Constraints Drum-Buffer-Rope
DCSee "Dicstribution Center"
DD MRPDemand-driven Material Requirements Planning
DDAEDemand-driven Adaptive Enterprize
DDIDemand-driven Institute
Dealer Own BrandA retailer may repackag and selle an existing product under its own brand as opposed to the brand of the manufacturer
Deep dealA less frequent promotion of which the price is the much more reduced price as per the cycle price mandate
Deeper priceA term used to denote a price that is less than a promited price being compared to
DemandThe amount of a product the market buys
DemographicInformation related to human characteristics
DenominatorThe metric used to divide another number with
DIFOTDelivered in full on time
DINCIncremental demand proportion
DIODays Inventory Outstanding
DiscontinuationOccurs when a product is no longer within the active portfolio of products sold
DISTAShare of all commodity volume
DISTNNumeric Distribution
Distribution (demand)The number of points-of-sale with sales as a percentage of the number of available points-of-sale
Distribution (supply)The logistical process of moving stock to next level echelons
Distribution CenterA physical location that is used to stoe and move stock throught the supply chain network
Distribution elasticityThe impact on demand when adding a point of sale
Distribution whitespacePoint-of-sale that are available to shoppers in which the product is not listed
DISTWWeighted Distribution
DLIFTLift demand proportion
DMADVSix Sigma process redesign process: Define, Measure, Analyse, Design, Verify
DMAICSix Sigma process definition: Define, Measure, Analyse, Improve, Control
DOBSee "Dealer Own Brand"
DPMODefects per million observations
DPODays Payable Outstanding
DPREDDemand predictability
DSODays Sales Outstanding
DSUBSubsidized demand proportion
Durable goodsGoods shopper buy that last a reasonable amount of time, but would need replacement or maintenance. For example houses, cars and househoods goods like ladders or fridges
EBITEarnings before interest and tax
EBITDAEarnings before interest and tax, depreciation and amortisation
ECTheory of Constraints Evaporating Cloud
EchelonA layer in the supply chain between te manufacturer and the shopper. A collection of regional warehouses is an echelon
EconometricInformation to financial and economic dynamics
Economy competitorEconomy competitors typically provide a streamlined offering to the market at a lower price.
Economy pricePrices below the 70% mark on the indexed price ladder
EDLPEveryday Low Price Flag
Elasticity of demandA metric used to denote the percentage change in sales when increasing price by 1%
Elasticity of supplyThe degree to which a product becomes more attracticve to supply if its price increase
EPOSElectronic Point Of Sale
ErraticA measure of volatility in the quantiy sold
Every day demandThe proportion of sales bought when the item is not on promotion
Every day priceThe usual price shoppers pay when the product is not on promotion
Expandable consumptionOccurs when consumption of a products increase when more of the product is available
FHoHFinancial half-on-half year
Fill rateThe degree to which customer demand is delivered by manufacturers
FMCGFast Moving Consumer Goods
Forward shareThe percentage of the visible shelf that is devoted to a particular product or brand
FPYFinancial year prior to last
FQoQFinancial quarter-on-quarter
FYoYFinancial year-on-year
GDPGross Domestic Product - e.g. GDP per captia
GeographyThe geospacial area, a ring-fenced set of coordinates
Giffen goodA product for which demand increase when the price increase, i.e. has positive elasticity
GondolaThe end a row of shelves in a brick-and-mortar store
GrowthThe period-on-period change in a measure
GSVGross Sales Value (list price x Volume)
GTNGross to Net Degradation
GTNDGross to Net (Discount)
GTNFGross to Net (Free stock)
GTNMGross to Net (Margin Protection)
GTNPGross to Net (Promotions)
GTNRGross to Net (Rebates)
GTNTGross to Net (Trading Terms)
HCMHuman Captial Management
HCPOLHolding Cost per Order line
HCPPPDHolding Cost per Pallet per Day
HCPUHolding Cost per Unit
HierarchyAn ordered set of nodes, in which a node is broken down to its constituent nodes, and can be aggregated into other nodes
HitOccurs when a product is sold in a particular time period
Hold-out analysisRemoving a portion of history from a model to test the accuracy of it without knowing the removed portion, i.e. a blind test
HORECAHotels, Restaurants, Cafes's & Catering - channel desciption
HypersHyermarket store format
IBPIntegrated Business Planning
In-fill rateSee "fill rate"
INFGPGross profit inflation
INFRRevenue Price Inflation
InteractionCross elasticity between a set of competing products
InterchangeabilityThe degree to which products can be substituted without a loss of function or utility
IntermittencyA measure of volatility in the time between sales hits
InventoryThe amount of a product that is kept in store
ISRInvoiced Sales Revenue
ITCInternal transport cost
JBPJoint Business Planning
KAMKey Accout Managment - customer managemnt process
KPIKey Performance Indictator
L&TLocal & Traditional - small retail businesses Channel description
LeanA methodology geared towards the elimination of waste
ListingDenotes that a product is available for sale in a particular point-of-sale
LOSLook of success, also known as "Perfect Store"
LPELinear price elasticity
LPITime since last Regular Price Change
LPROMTime sine last promotion
LPROMPTime sine last price-promotion
Mainstream competitorMainstream competitors make up the bulk of the market, is reasonably priced and fulfill the needs of a typical consumer.
Mainstream pricePrices between the 70% and 80% mark on the indexed price ladder
MandateContains the approved regular price, cycle and deep deal prices, as well a customer-banner specific regular price deals
ManufacturerThe entity making a product
MAPEMean-Absolute-Percent-Error
MATMoving Annual Total, or a rolling 12 month total
MCPMerchandising Calls (Planned)
MCUPMerchandising Calls (Unplanned)
MechanicThe configurion used to define and execute promotions
MEIOMulti-echelon Inventory Optimization
MERCHProportion planned merchandising calls
Mid-point methodUses the average of two values as the denominator when calculating the percentage change in the two values
Mill'sMillions - value or volume
MKTMarket - e.g. market share
MPEMinimum required price elasticity
MTModern Trade - a channel, e.g. Modern Trade grovery
Niche competitorsNiche competitors typically provide unique or additional features that command a higher price, but typically speak to a smaller portion of the market.
NodeA chosen grouping of product(s) and customer(s)
NominatorThe metric being divided by another number
Non-durable goodsGoods shoppers buy for immediate or near-term consumption or use, like food
NPCNon-price promotion Count
NPFNon-price promotion Frequency
NPINew product introduction
NPPNon-price promotion Flag
Numeric distributionThe percentage of the number points-of-sale that sold a product in relation to the number of points-of-sale that lists the product
Numeric price indexNumeric price indexing relates the price of a product or service to the rest of the market
OBPPCOccasion, Brand, Pack, Price, Channel
ObsolescenceRemaining sotkc of products that have been discontinued
OccasionThe calendar event associated with a time period, like Black Friday / or an event liking a brand or product to a consumer event, e.g. Meals away from home, On the Go, etc.
ODCOrders Delivered Complete
ODDOrders with perfect documentation
ODROrders Delivered Damage Free
ODTOrders Delivered in Time
OEEOverall Equipment Effectiveness
OFLTOrder Fulfillment Lead Time
Omni-channelA shopper focussed approach to ensure that the shopper has a consistent experience irrespective of the channel buying from, be it online, via social media, or brick-and-mortar stores
OTAXOther taxes, like excise
OTCOutbound transport cost
Pack sizeThe size in which a product is made, like 500ml and 750ml
ParticpationThe number of points of sale that typically run promotion and apply regular prices as planned
PARTNNumeric Participation
PARTWWeighted Participation
Pay for performanceA mechanism A mechanism where customers are conditional based paid trade terms for providing a specific 'ask' e.g. maintaining a full product range on shelf, or maintaining specific displays for a specified period etc.. the amount sold, as opposed to predetermining the trade spend to be paid
PCEPersonal Consumption Expenditure
PFMPetroleum food Markets - Channel description
PicOSPicture of success. See "Look of success"
PINDWWeighted Price Index
PIPPrice increase proximity
Planning horizonThe amount of future time periods used to perform an analysis with
Point of PurchaseSee "Point of sale"
Point-of-saleA mechanish available to a shopper to buy a product from, like an online store or a brick-and-mortar outlet
POOGIProcess of on-going improvement
PORDPerfect Order Fulfillment
POSCLPoints-of-Sale Closing
POSOPoints-of-Sale Opening
Post-promotion base incremental gainThe gain in base due to new shoppers and incremental lift due to promotional activity
Post-promotion base lossThe lost base demand in periods after a promotion
PPAPack, Price Architecture
PPEPromoted Price Elasticity
Premium pricePrices between the 80% and 90% mark on the indexed price ladder
PriceThe amount of money asked for a product
Price decreaseA reduction in the regular price of a product
Price depthThe percentage drop in price while on promotion
Price elasticityPrice Elasticity expresses the percentage change in demand when reducing price by 1%
Price gapThe difference in price between two competing products
Price gap elasticityThe impact on demand of a product when the price gap to a competitor product change
Price increaseAn increase in the regular price of a product
Price ladderAn ordered listing of competitor prices within a competitive set
ProductThe goods shopper buy
Promoted incremental gainThe difference in lift on promotion and post-promotion base loss
Promoted price elasticityThe impact on demand when increasing the price of a product by 1% when on promotion
Promotion frequencyThe proportion of time in which a product was on promotion
Promotion slotThe window of time made available by customers to promote in
Promotion widthThe amount of time on promotion
PROXProximity to Source of Supply
PVMPrice, Volume, Mix - refers to analysis exercise
QuantityA unit of measure denoting how many units are being sold. For example, in a shrink of 6 products the quantity is 1 but the units are 6
RankThe numeric order of nodes in context of a measure
RCCPRough-cut Capacity Planning
Reference price ladderAn ordered indexed listing of prices showing the price gap in relation to a reference product
Regular demandThe amount of products solds while not on promotion
Regular priceThe amount asked for a product when it is not on promotion
Regular price elasticityThe impact on the non-promoted demand of a product when increasing the regular price by 1%
ReplenishmentThe manner in which a customer usually buys in stock to support sales
RGMRevenue Growth Management
RGMIRevenue Growth Management Institute
RIFOTReceived in full in time
RLFResource Load Factory (see RCCP)
ROCEReturn on Capital Employed
ROICReturn on Invested Capital
ROPIReturn on promotion investment
ROTIReturn on trade investment
Route to marketThe collection of channels and customers through which shoppers are served
RPCRegular Price Change Flag
RPCDRegular Price Change Depth
RPCFRegular Price Change Frequency
RPERegular Price Elasticity
RPSPRecommended Promoted Selling Price
RRSPRecommended Retail Selling Price
RSCAReturn on Supply Chain Assets
RSPRecommended Selling Price
RTMRoute To Market - channel sales
Run outThe process of selling off redundant or obsolete stock
RWCReturn on Working Capital
S&T TreeTheory of Constraints Strategy & Tactics Tree
SalesOccurs when a product is bought by a shopper
Sales (function)The collection of people selling goods to customers
SALOSales out of Point-of-Sale
SALPPPrice Promoted Sales
SALZNumber of days with low sales
SAMServiced Available Market
SCDASupply Chain Downside Adaptability
SCUASupply Chain Upside Adaptability
SCUFSupply Chain Upside Flexibility
Service lead timeThe time in which a customer must be served
Service levelThe desired level of performance in terms of ordered and received stock
ServicesThe non-material offering shoppers buy
SG&ASales, General and Administrative Cost
Shallower priceA term used to denote a price that is more than a promited price being compared to
ShelfThe mechanism of display used in brick-and-mortar stores to present products for sale
ShopperThe person buying products
Shopper missionRelates to when and how the sale will occur in lieu of a consumption occasion
Short range elasticityThe near term impact on demand when increasing price by 1%
SICStock in Trade (i.e. Customer)
Six SigmaA methodology to enhance system reliability through reducing variability
SKUSee "Stock Keeping Unit"
SLOBSlow moving and obsolete stock
SMARTSpecific, Measurable, Achievable, Realistic & Time Bound
SOMServiced Obtainable Market
SOSStock-out at shelf Flag
SOVIShare of visible inventory
SSCATheory of Constraints Supply Chain Synchronization Application
Star competitorStar competitors have superior market share at premium pricing.
Steady state elasticityThe long term impact on demand when increasing price by 1%
Stock buildThe process in which customers buy-in more stock than currently needed in preparation for a future event or promotion
Stock Keeping UnitSee "Product"
STXSales Transaction Count
SubstitutionOccurs when one product is sold and used in place of another without loss of utility
Super premium pricePrices above the 90% mark on the indexed price ladder
SWOTStrenths, Weaknesses, Opportunities, Threats
TATheory of Constraints Throughput Accounting
TAMTotal Available Market
TCVRInventory Cover in Trade
Temporary price reductionA promotion in which a primary mechanic is a drop in price
TOCLSSA blended approach to the Theory of Constraints, Lean, and Six Sigma
TPTheory of Constraints Thinking Process
TPMSee "Trade Promotions Management"
TPOSee "Trade Promotions Optimization"
TPRSee Temporary Price Reduction
TPR DepthSee "Price depth"
TPRPProportion of demand promoted
Trade investmentThe money paid to customers to fund activity
Trade investment elasticityThe impact on demand when investing 1% more in the customer
Trade Promotions ManagementThe discipline through which manufacturers adminstrate trade investment initiatives
Trade Promotions OptimizationThe discipline through which the money invested in customers return the most money to the manufacturee
Trade spendSee "Trade investment"
Unit of MeasureThe magnitude of a quantity, like litres or tonnes for example. In CPG, units or "each" is also regarded as a unit of measure
UnitsA unit of measure denoting how many of a product is being sold
VariantA sub-type of a product of the same pack. For example, the same 300ml product is sold in many flavours
VelocityMeasure of rate of sale, for example sales per quarter
Velocity RoadmapSee "TOCLSS"
VolumeA alternative unit of measure denoting how much of a product is being sold. For example, selling 10 of 300ml bottle equates to 3 liters being sold
WAPEWeighted-Absolute-Percent-Error
WarehouseA physical building in which products are stored
Weighted distributionSimilar to numeric distribution, but sales are weighed by unit of measure
Weighted price indexWeighted price indexing incorporates the relative sizing of competitors into numeric price indices
WPLWeighted average promoted lift
WPPWeighted average promoted pice
WPPDWeighted average promoted price depth
WRPWeighted average regular price
XPECross price elasticity
ZERONumber of days with no sales
