TermiKnowledge - Supply Chain, Procurement and Inventory Terminologies
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CIOP is an end-to-end supply chain training and certification program designed and developed by supply chain practitioners and consultants. The syllabus was developed in consultation with the industry, which led to Inventory Management Body of Knowledge (IMBoK v3.0). Most of the class discussions you will hear cannot be found in any textbook rather these are all the original contribution from the developers of CIOP. For example, think about the types of inventories such as raw material, work-in-process and finished goods. Out of these three, WIP is the most difficult to sell in the market and that is one of the reasons, WIP should be controlled well. The company has a built-in capability and capacity to sell finished goods, which is their business. The second easy to sell are the raw materials as you know the suppliers, who may either buy-back or at least guide you. But in case of WIP, this is custom manufactured to suit your manufacturing processes and may not well fit any other organisation, hence you may have to sell it as a scrap.


Acceptance is a step in the manufacturing process that determines whether the product or service has been delivered as expected. The customer must approve the order or contract before production can begin, which involves an extensive process involving warehouse inventory and other types of warehouse operations. Warehouse inventories must be maintained so that goods can be located when needed, and products kept on hand when others are needed as well. It is important to have a continuous process for accepting orders, which is part of the Supply Chain Management.

Acceptance of an order typically occurs in the supply chain when a supplier agrees to accept and shipment goods to the customer. This is done when the order is received at the manufacturer's or wholesaler's end, from where the goods are shipped to the warehouse. The warehouse then sorts, packs, boxes, and labels the order, preparing it for shipping and delivery. The items are then shipped to the customer who signs and acknowledges the terms of the sales agreement. While acceptance occurs, quantities are established with suppliers so that both parties can agree on the quantity of goods that are produced or supplied for a particular period of time.

In accepting an order, logistics should first establish an inventory and then prepare a list of suppliers that provide goods to the client. After creating an inventory, logistics will then find a suitable supplier to fill the order. Finding the right suppliers that meet the needs of the client is important to having a smooth and profitable relationship with customers and the success of the company. Once the suppliers have been found, they should be compared for price and quality. Once this is done, the inventory is matched with the suppliers for quantity and quality, and an agreed upon price is established.

Certified Inventory Optimization Professional 

CIOP is an end-to-end supply chain certification that contains 30 modules such as Introduction to Supply Chain Management, All About Inventory, Production Planning System, Strategic Business Planning, Sales & Operations Planning, Master Scheduling, Material Requirements Planning, Demand Management, Capacity Management, Forecasting, Production Activity Control, Procurement, Order Quantities, Independent Demand Ordering Systems, Warehouse Management, Transportation Management, Supplier Relationship Management (SRM), Customer Relationship Management (CRM), Introduction to Quality, Introduction to Packaging, Introduction to Process, Lean, Six Sigma, Total Quality Management, Theory of Constraints, Supply Chain Technologies, Supply Chain Techniques, Industry 4.0, International Standards and Supply Chain Risk, Safety and Security. 

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CIOP Knowledge Series

One-Minute Supply Chain Facts

The most recent video is available here. To access the past videos in the One-Minute Supply Chain Facts Series, please click the playlist icon located on the Top-Right of the video.





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