EAN

See European article number

EAN code

The EAN code is a specific barcode standard. It generally consists of a country designation, a so-called participant number and the article number. Variations of this standard are used. The EAN-128 standard is the most important for logistics. It has 128 characters and is used to identify shipping and retail units. Today, the EAN code is recognized well beyond European borders, and is used in both Japan and the United States, among other places.

Easily purchased products

E-commerce

See electronic commerce

Economic value added

Economic value added (EVA) is a concept for determining the soundness of an investment. It is determined this way:

EVA = (ROCE – WACC) * NOA

ROCE = Return on capital employed
WACC = Weighted average cost of capital
NOA = Net Operating Assets
Shareholders of the company will receive a positive value added when the return from the capital employed in the business operations is greater than the cost of that capital.

Economies of scale

In economics, this term describes the effect achieved when a company is able to lower its costs by increasing the amount of a service or product.
For instance, production costs per unit fall when a company produces 100,000 units a day instead of 100.

Economies of scope

Economies of scope are created when a company, exploiting synergy effects, can produce or sell several products at a lower price than other companies that produce or sell only one of the goods.
A tire dealer, for instance, can expect that he will more likely be able to sell wheel rims than a retailer who sells only wheel rims.

ECR

See efficient consumer response

EDI

See electronic data interchange

EDIFACT

EDIFACT stands for electronic data interchange for administration, commerce and transport. EDIFACT is a cross-sector, standard international format for electronic data interchange.

Efficient consumer response

In order to avoid shortages, integrated information systems are developed within the context of efficient consumer response (ECR).
Based on the retailer’s inventory control system and a scanning cash-register organization, sales data are reported to the retailer’s central warehouse and sent to the manufacturer along with the warehouse’s own inventory data. As a result, manufacturers gain an overview of sales and inventory levels of their products and can continuously adjust sales forecasts and production.

Efficient replenishment

Efficient replenishment is the realization of an effective, continuous resupply system that extends from the manufacturer to retail sales outlets. The central component is the precise recording of sales in an inventory control system with the help of the EAN code and scanner technology.
The range of ER concepts can vary greatly. In its most simple form, replenishment of the sales outlets is managed from a retail warehouse, and logistics service providers deliver the new supplies. Replenishment assumes its most complicated form when, moving beyond the retail level, suppliers and their vendors are connected by a retail-driven flow of data. This opens the way to the transition to “vendor managed inventory.”

EFTA

See European Free Trade Association

EHB

See electrical hanging conveyor system

Electrical hanging conveyor system

An electrical hanging conveyor system is a tracked means of conveyance with separately controlled conveyor units. The tracks are installed under a hall roof or on a steel structure erected for this purpose.
Electrical hanging conveyor systems are favored by the automotive industry.

Electronic commerce

E-commerce describes all business transactions that are done electronically and can result in the sale of a product or service. One main area of activity for e-commerce is retailing on the Internet.

Electronic data interchange

In B2B relationships, networking of companies with information and communication technologies accelerates order processing and, as a result, produces shorter reaction times to customer orders. Electronic data transmission enables updated point-of-sale data for the entire supply chain to be made available at any time, resulting in increased planning and scheduling security.
"Electronic-data-interchange" systems can assume this task. Transaction data such as orders, delivery sheets and invoices can be transferred with the help of international communication standards along with reporting and planning data like point-of-sale information, warehousing reports, forecasts, advertising measures and new-product introductions. One important international, cross-sector EDI standard is EDIFACT. The high implementation and operating costs can be reduced through the use of Internet-based Web-ED.

End of life

The term “end of life” describes goods that have reached the final stage of their storability. It can refer to out-of-date or non-reparable products.

End to end

End to end describes the entire cycle of logistics activities. End-to-end supply chain management ranges from procurement to the transport of goods from the point of origin and to the location designated by the end customer.

Enterprise application integration

Enterprise application integration is a concept of process-oriented integration of application systems in heterogeneous IT application architectures. Unlike EDI, which involves the participation of at least two different parties (companies, government agencies, etc.), data interchange within an organization is described as enterprise application integration.

Enterprise resource planning

Enterprise resource planning (ERP) is a comprehensive computer data-processing system that depicts the business processes and resources in a company, and can help manage the execution of processes. ERP systems can manage finance and accounting, human resources, research and development, marketing and database management in addition to materials handling and production. The largest supplier of ERP systems is SAP with products that include SAP R/3 or mySAP.

ER

See efficient replenishment

ERP

See enterprise resource planning

Euro pallet

The Euro pallet is the most well-known flat pallet in Europe. The pallet, measuring 800 x 1200 mm, is a load carrier standardized by European transport companies.

European article number

EAN used to be called the "European Numbering Association,” an organization that developed identification standards for barcodes. Today, the organization is known as "EAN International" and is headquartered in Brussels. About 100 national EAN organizations around the world are members of it.

European Free Trade Association

The EFTA was founded in 1960 by countries that did not belong to the European Community (EC). Its mission is to protect the trade interests of its member countries. Since then, several of these countries have joined today’s European Union. The current members are Iceland, Liechtenstein, Norway and Switzerland.

Ex works

The customer (e.g., forwarder, carrier) determines all logistics services and assumes all related logistics costs. The services of the sender (seller or manufacturer) end with the loading onto the means of transport. Ex works is an incoterm and applies to all means of transport.

Experience curve effect

The experience curve effect describes the phenomenon in which the costs of producing a product decrease with the produced total. It is estimated that doubling the production total leads to cost reductions of 20-30%.

Express service

Express services generally transport high-quality goods quickly and reliably. Unlike courier services, the transport is not done exclusively and personally. But the express transport is done by “a single source.” Fixed delivery times like 8 a.m., 9 a.m. and 10 a.m. are offered.

Externally initiated purchases

In externally initiated purchases, the consumer knows nothing about the products, or he is acquainted with them but has no intention of buying them. Marketing efforts are the primary approach to selling such goods. Delivery service is also very important. The products must be immediately available once advertising campaigns or personal buying considerations have prompted the consumer to make a purchase. Otherwise, the awakened demand cannot be satisfied.

EXW

See ex works