Product Supply and Installation Acronyms FAQ

Below is a detailed FAQ-style blog post covering key acronyms commonly encountered in the Product Supply & Installation sector. Each entry clarifies the acronym, provides a concise explanation with an example of use in UK business or technical dialogue, and identifies the relevant sector or service category. This resource is formatted to aid both technical professionals and business stakeholders.

What is 3PL?

3PL stands for “Third-Party Logistics”. This refers to outsourcing logistics and supply chain functions, such as transportation, warehousing, and fulfilment, to a specialised provider. For example, a technology vendor may employ a 3PL to handle their warehousing and direct-to-customer delivery, allowing them to focus on product innovation rather than distribution logistics.

(Category: Supply Chain, Logistics)

What is BOM?

BOM means “Bill of Materials”. This is a comprehensive list of raw materials, components, and sub-assemblies required to manufacture, assemble, or repair a product or system. For instance, an IT integrator preparing to install servers will reference a BOM to ensure all necessary components are ordered and available before installation commences.

(Category: Manufacturing, Assembly, Product Supply)

What is ERP?

ERP stands for “Enterprise Resource Planning”. ERP is software used to integrate and manage core business processes, including finance, supply chain, procurement, and project management, across an organisation. For example, a company that supplies and installs IT equipment may use ERP to coordinate sourcing, delivery scheduling, and billing, thereby streamlining its operations.

(Category: Information Technology, Business Process)

What is JIT?

JIT means “Just In Time”. This is an inventory management strategy aiming to align supply arrivals with production or installation schedules, reducing storage costs and improving cash flow. An example would be a contractor timing component deliveries precisely to coincide with each stage of a physical installation, thus minimising site storage.

(Category: Inventory Management, Manufacturing)

What is SKU?

SKU stands for “Stock Keeping Unit”. It is a unique identifier assigned to each product type for inventory management, tracking, and control. For instance, every laptop model supplied and installed by an IT reseller would have its own SKU for ordering and support.

(Category: Inventory Management, Product Supply)

What is WMS?

WMS refers to “Warehouse Management System”. This is specialised software for managing warehouse operations, including stock tracking, picking, packing, and dispatch. For example, a product supply company may use a WMS to optimise storage and ensure timely picking of equipment for installation at client sites.

(Category: Information Technology, Warehousing)

What is RFQ?

RFQ means “Request for Quote”. In procurement, an RFQ is sent to suppliers to solicit pricing and terms for specific products or services. For example, a procurement manager issues an RFQ to multiple cable vendors before bulk-purchasing for a large installation project.

(Category: Procurement, Sourcing)

What is OEM?

OEM stands for “Original Equipment Manufacturer”. This term refers to the company that initially manufactures products or components sold by another company under its brand. For example, in IT supply, an organisation sourcing branded computers is dealing with an OEM, whether directly or via a reseller.

(Category: Manufacturing, Product Supply)

What is SLA?

SLA is short for “Service Level Agreement”. It is a contractual agreement that sets the expected level of service between a supplier and a customer, often for response times or product availability. For instance, post-installation support contracts with a defined SLA ensure IT downtime is minimised, crucial for business continuity.

(Category: Procurement, Service Management)

What is QA/QC?

QA stands for “Quality Assurance” and QC stands for “Quality Control”. QA refers to systematic processes to ensure product or service quality meets requirements, while QC focuses on inspection and testing to identify defects. For example, both are used in product supply to prevent and detect issues with supplied equipment before it is installed on client sites.

(Category: Quality Management, Compliance)

What is EDI?

EDI means “Electronic Data Interchange”. This is the computer-to-computer exchange of business documents in a standard electronic format, such as purchase orders and invoices, expediting procurement and logistics processes. For example, utilising EDI speeds up processing between distributors and IT suppliers, minimising paper-based delays.

(Category: Information Technology, Procurement)

What is VMI?

VMI stands for “Vendor Managed Inventory”. This inventory management method assigns responsibility for stock levels and replenishment to the supplier, improving supply reliability. In the IT sector, a distributor may manage a facility’s spare parts inventory, automatically replenishing it when thresholds are reached.

(Category: Inventory Management, Supply Chain)

What is PO?

PO means “Purchase Order”. This document is sent from a buyer to a supplier, confirming the intent to purchase specified goods or services and forming the basis of a contract. In installation projects, POs formalise orders for required hardware before an on-site deployment begins.

(Category: Procurement, Business Process)

What is PLM?

PLM is “Product Lifecycle Management”. PLM is a systematic approach to managing every stage of a product’s existence, from design through to decommissioning. In sectors with regular technology refresh cycles, PLM is vital for ensuring compliant disposal and efficient upgrades.

(Category: Product Management, IT Lifecycle)

What is MRP?

MRP stands for “Material Requirements Planning”. MRP is a system for production planning, scheduling, and inventory control, ensuring that materials are available for manufacturing or installation when needed. For instance, large infrastructure installation projects rely on MRP to coordinate the timely delivery of all necessary components.

(Category: Manufacturing, Inventory Management)

What is TMS?

TMS stands for “Transport Management System”. This is software that assists companies in planning, executing, and optimising the physical movement of goods. In a supply and installation context, a TMS ensures the efficient, trackable delivery of products to client premises.

(Category: Logistics, Distribution)

What is DIFOT/OTIF?

DIFOT means “Delivery In Full, On Time” and OTIF is “On Time In Full”. Both are key performance indicators (KPIs) that measure the reliability and efficiency of order fulfilment. For example, a supplier’s DIFOT rate is used in contractual discussions when negotiating SLAs for scheduled rollouts.

(Category: Supply Chain, Logistics)

What is FOB?

FOB stands for “Free On Board”. This international commercial term signifies the point at which risk and responsibility for shipped goods pass from the seller to the buyer—typically when the goods are loaded onto a vessel. In UK IT product supply, FOB terms determine who pays shipping and insurance.

(Category: Shipping, Procurement)

What is WIP?

WIP means “Work In Progress”. This term refers to goods that are not yet completed but are in various stages of production or assembly. For example, in an integrated supply and installation project, WIP may refer to partially assembled server racks awaiting final network cabling.

(Category: Manufacturing, Project Management)

Submit Your Questions

If any acronyms are missing from this guide or you would like to request an explanation of a specific term used in Product Supply & Installation, please contact us or leave a comment below. This resource is continuously updated to reflect best practices and trends within UK IT and supply operations.

This FAQ is intended as a practical navigation tool for those involved in UK Product Supply & Installation, from procurement through to on-site delivery and ongoing support.