Abc analysis: a classification of items in an inventory according to importance defined in terms of criteria such as sales volume and purchase volume. Abc classification

Outbound Logistics: The process related to the movement and storage of products from the end of the production line to the end user.
Out-of-Pocket Cost: The cost directly assignable to a particular unit of traffic and which a company would not have incurred if it had not performed the movement.
Outlier: A data point that differs significantly from other data for a similar phenomenon. For example, if the average sales for a product were ten units per month, and one month the product had sales of 500 units, this sales point might be considered an outlier.
Outpartnering: The process of involving the supplier in a close partnership with the firm and its operations management system. Outpartnering is characterized by close working relationships between buyers and suppliers, high levels of trust, mutual respect, and emphasis on joint problem solving and cooperation. With outpartnering, the supplier is not viewed as an alternative source of goods and services (as observed under outsourcing), but rather as a source of knowledge, expertise, and complementary core competencies. Outpartnering is typically found during the early stages of product life cycle when dealing with products that are viewed as critical to the strategic survival of the firm. Also see: Customer-Supplier Partnership.
Outsource: To utilize a third party provider to perform services previously performed in house. Examples include manufacturing of products and call center/customer support.
Outsourced Cost-of-Goods Sold: Operations performed on raw material outside of the responding entity's organization that would typically be considered internal to the entity's manufacturing cycle. Outsourced cost-of-goods sold captures the value of all outsourced activities that roll up as cost-of-goods sold. Some examples of commonly outsourced areas are assembly, test, metal finishing or painting, and specialized assembly process.
Over, Short, and damaged (OS&D): This is typically a report issued at the warehouse when goods are damaged. Used to file a claim with a carrier.
Over-the-Road: A motor carrier operation that reflects long-distance moves; the opposite of local operations.
Owner/Operator: A truck driver who owns and operates his/her tractor/trailer.
P
P & D: Pickup and delivery.
P2P: See Path to Profitability (P2P).
Packing List: A document containing information about the location of each Product ID in each package. It allows the recipient to quickly find the item he or she is looking for without a broad search of all packages. It also confirms the actual shipment of goods on a line item basis.
Pallet: The platform which cartons are stacked on and then used for shipment or movement as a group. Pallets may be made of wood or composite materials.
Pallet Wrapping Machine: A machine that wraps a pallet's contents in stretch-wrap to ensure safe shipment.
Parcel Shipment: Parcels include small packages like those typically handled by providers such as UPS and FedEx.
Pareto: A means of sorting data. For example, the number of quality faults by frequency of occurrence. An analysis that compares cumulative percentages of the rank ordering of costs, cost drivers, profits, or other attributes to determine whether a minority of elements have a disproportionate impact. Another example: identifying that 20% of a set of independent variables is responsible for 80% of the effect. Also see: 80/20 Rule.
Particular Average: See Marine Cargo Insurance.