Glossary: the terms of business management, explained

All the terms

The terms are in alphabetical order and each one has a short definition that says what it is. Open any of them to see a longer explanation, the related terms and, where there is one, the W3ERP module where it is used. If a term is missing, tell us through the contact form and we will add it.

B2B

B2B (business to business) refers to commercial relationships between companies, as opposed to B2C with the end consumer. In business software, a B2B portal is the private website where the professional customers of a company check their prices, place orders, track them and download delivery notes and invoices.

B2C

B2C (business to consumer) refers to direct sales to the end consumer, as opposed to B2B between companies. In business software, a B2C online store is the website selling to individuals that publishes catalogue, prices and stock and collects orders and payments, connected to the ERP so data is not duplicated.

Batch

A batch (or lot) is the set of units of a product manufactured or received under the same conditions (same firing, same raw material delivery, same date) that share characteristics and are identified by a common code. It is the basic unit of traceability and quality control.

Calibre (ceramics)

In ceramics, the calibre (caliber in US English) is the variation of the real size of a piece from its nominal size, caused by shrinkage in the kiln. Pieces are classified by calibre with a code on the box, because two different calibres do not fit with the same joint on the same surface.

Chain of custody

The chain of custody (PEFC or FSC) is the record-keeping system that proves that the wood, paper or cork in a product comes from sustainably managed forests. The record follows the certified material through the purchasing, production and sales of every company in the chain.

CRM

A CRM (Customer Relationship Management) system is the software where the sales and customer service teams record contacts, visits, opportunities, quotes and incidents for each customer, so that the whole company shares the history of each account.

Dashboard

A dashboard is the screen that gathers in a single view the main indicators of the company (sales, margins, orders, stock, cash) as charts and figures, fed with real data from the management system and viewable from any device.

Digitalisation agent

A digitalisation agent is a technology company accredited under the Kit Digital programme, authorised by Red.es to offer subsidised solutions, sign the service agreement with the beneficiary, implement the solution, submit the justification and collect the subsidised part directly from the programme.

E-invoicing

An electronic invoice is an invoice issued, sent and stored in a structured electronic format (such as Facturae or the European format), with the same legal validity as a paper one. In Spain it is mandatory with public administrations and is being extended to transactions between companies.

EDI

EDI (Electronic Data Interchange) is the exchange of commercial documents (orders, delivery notes, invoices, shipping notices) directly between the computer systems of two companies, in a standardised format, with no paper, email or manual typing.

ERP

An ERP (Enterprise Resource Planning) system is the software that brings the sales, purchasing, warehouse, production and accounting of a company together in a single database. Every department works with the same data.

Kit Consulting

Kit Consulting is the Spanish Government programme, funded by Next Generation funds, that grants SMEs with 10 to 249 employees a voucher to contract digital advisory services from accredited advisers, in categories such as artificial intelligence, data analysis, digital sales or business processes.

Kit Digital

Kit Digital is the Spanish Government programme, run by Red.es with Next Generation funds, that grants a digital voucher to SMEs and the self-employed to contract digitalisation solutions (process management, e-invoicing, website, e-commerce, CRM, BI) from accredited digitalisation agents.

KPI

A KPI (Key Performance Indicator) is a numerical measure chosen to know whether a business objective is being met: cumulative sales against budget, margin per product, orders delivered on time or stock turnover. It is calculated with real data from the management system.

No code

No code is a development approach in which applications are built by configuring a platform (screens, fields, rules, workflows), without programming every element from scratch. Customisation is faster and the team itself can maintain it.

OLAP

OLAP (Online Analytical Processing) is the technology that organises company data into multidimensional cubes so it can be analysed by any combination of dimensions (period, customer, sales rep, product, area) without waiting for someone to prepare a report.

POS

A POS (point of sale, TPV in Spanish) is the system used to record sales at the counter or the box office: items or tickets, cash or card payment and receipt. Integrated in the ERP, every sale deducts stock and is posted to the accounts at once.

Radio frequency (RF)

In logistics, radio frequency (RF) is the use of mobile terminals with barcode readers, connected by wifi to the warehouse management system, to record every receipt, put-away, picking or shipment at the time and in the place where it happens.

Shade (ceramics)

In ceramics, the shade (tono in Spanish) is the slight colour variation that occurs between different firings of the same tile model. Each shade is identified with a code printed on the box, and pieces of different shades should not be mixed in the same room.

SII

The SII (Suministro Inmediato de Información, Immediate Supply of Information) is the Spanish Tax Agency system through which certain companies send the records of their issued and received invoices electronically within a few days of issuing or recording them, instead of filing VAT books.

Traceability

Traceability is the ability to reconstruct the complete path of a product or batch: which raw materials it comes from, which processes it went through, on which dates, with which quality results and to which customers it was delivered. It relies on batch identification and on recording every movement.

WMS

A WMS (warehouse management system, SGA in Spanish) is the software that manages the warehouse by locations: it records receipts, put-away, picking, shipments and stock counts. With it, system stock matches physical stock at all times.