Cloud ERP & Manufacturing Glossary

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Name: Content Delivery Network (CDN)
Description: A system consisting of multiple computers that contain copies of data, which are located in different places on the network so clients can access the copy closest to them.


Multi Tenancy is the property of multiple systems, applications or data from different enterprises hosted on the same physical hardware. Multi Tenancy is common in most cloud-based systems.

SLA (Service Level Agreement)

An SLA (Service Level Agreement)
is a contract between a provider and a consumer that specifies consumer requirements and the provider’s commitment to them. Typically an SLA includes items such as uptime, privacy, security and backup procedures.

Cloud Application

A Cloud Application is the top layer of the Cloud Computing Stack where applications interact with client web browsers. Examples: Gmail and

Cloud Broker

A Cloud Broker is an entity that creates and maintains relationships with multiple cloud service providers. It acts as a liaison between cloud services customers and cloud service providers, selecting the best provider for each customer and monitoring the services. is the Platform as a Service (PaaS) offering from See also: PaaS.

Subscription Based Pricing Model

The Subscription Based Pricing Model is a pricing model that lets customers pay a fee to use the service for a particular time period, often used for SaaS services.

Job Shop

A Job Shop is a facility or company that manufactures small batches of different custom products. In a job shop, many products require a unique setup and a specific sequence of steps. Job shops are often companies that produce custom parts for other manufacturers and usually focus on customization and small production runs instead of volume and standardization.

Cloud ERP

Cloud ERP is a shortened form of Cloud ERP Software, often used as a label for cloud-based ERP software in general.

ERP Vendors

ERP Vendors are software development companies and their partners who sell ERP software. For example, as a leading Cloud ERP company, Rootstock Software is a top Cloud ERP vendor.

Distribution ERP

A Distribution ERP is an Enterprise Resource Planning (ERP) system designed specifically for companies involved primarily in the distribution of products and services. ERP for distribution companies can be stand-alone systems, such as ERP distribution software, or part of a more complete cloud-based ERP solution like that offered by Rootstock Software. See also Cloud ERP for Wholesale Distributors.

Machine Shop

A Machine Shop is a facility in which machine tools are used to build and repair parts made of metals and other materials. Machine shops typically use drills, lathes, milling machines, presses, cutting and welding equipment, and grinding and polishing machines to build and repair machine tools, dies, and molds for such mass-produced parts as pistons, screws, or gears. The parts produced by a machine shop can be the end product or can be sold to manufacturers in other industries.

Industrial Equipment Manufacturing

Industrial Equipment Manufacturing refers to the production of hardware, machinery and other industrial components used in other industries. Industrial equipment manufacturers produce power and hand tools, polishing and metal-working machines, drills, nuts, bolts, screws, springs, valves, pneumatic hoses and other basic equipment, as well as generators, conveyors and heavy equipment.

Machinery Manufacturing

Machinery Manufacturing refers to the design and production of machine products that require complex assembly operations. Machinery manufacturers use multiple metal forming processes to produce the different parts of a machine, and then assemble the parts together. Some manufacturers produce general purpose machinery for heating and air conditioning; commercial refrigeration equipment; and engine, turbine and power transmission equipment. Other companies produce machinery designed to be used in a particular industry, such as agriculture, construction and mining.

High-Tech Manufacturing

High-Tech Manufacturing refers to the production of commercial and personal computer and electronics products using the most advanced technology available. See also Electronics Manufacturing.

Electronics Manufacturing

Name: Electronics Manufacturing
Description: The production of computers, computer peripherals, communications equipment, integrated circuits and other electronic products, as well as the application of highly specialized miniaturization technologies. Electronics and high-tech manufacturing are usually grouped together as a single manufacturing industry due to their economic significance.

Engineer to Order

Name: Engineer to Order
Description: A manufacturing process in which a product is designed, engineered and finished after an order has been received. Engineer to Order manufacturers build complex or specialized products to the customer’s specifications and work with the customer throughout the process.

Medical Device Manufacturing

Name: Medical Device Manufacturing
Description: The production of any item or component used in the diagnosis, treatment, prevention or cure of medical conditions or diseases, or that affects the body through means other than chemical or metabolic reaction in humans or animals. In the United States, medical device manufacturers must comply with strict regulations established and monitored by the Food and Drug Administration (FDA).

Aerospace Manufacturing

Name: Aerospace Manufacturing
Description: The process of designing, building, testing, selling and maintaining aircraft, aircraft parts, missiles, rockets and spacecraft. Aerospace companies use project-based manufacturing. See also Project Manufacturing.

Defense Manufacturing

Name: Defense Manufacturing
Description: The production of military or civilian aircraft, ships, vehicles, weaponry, and electronic systems. Aerospace and defense manufacturing are often grouped together into a single industry. See also Aerospace Manufacturing.

ERP Software for Aerospace

Name: ERP Software for Aerospace
Description: Enterprise Resource Planning (ERP) software designed specifically for manufacturers in the aerospace and defense industries. See also Cloud ERP Software for Aerospace Manufacturers.

Lot Control Software

Name: Lot Control Software
Description: Software used by manufacturers and distributors to track every product from the manufacturer through the supplier to the customer. A lot is a specific group of an item that was received, is stored, or was shipped from a warehouse. Advanced lot control systems automate the tracking of products by their lot number, helping companies track product movement, create reports, comply with regulations and minimize the costs of product recalls.

On-Premise ERP

Name: On-Premise ERP
Description: Another name for Legacy ERP Software or systems. See Legacy ERP.

Cloud-Based Manufacturing Software

Name: Cloud-Based Manufacturing Software
Description: Manufacturing software based on cloud computing technology. See also Cloud ERP Software for Manufacturing.

MRP Cloud

Name: MRP Cloud
Description: A name used to describe Material Requirements Planning (MRP) software based on cloud computing. See also Material Requirements Planning (MRP).

ERP for Wholesale Distribution

Name: ERP for Wholesale Distribution
Description: Enterprise Resource Planning (ERP) software designed to meet the business requirements of wholesale distributors. See also Cloud ERP for Wholesale Distributors.

Shop Floor Control in ERP

Name: Shop Floor Control in ERP
Description: A group of integrated functions in Enterprise Resource Management (ERP) software used by manufacturing firms to track, schedule and report on the progress of work in a factory. Shop floor control implements scheduling plans by issuing work orders to work centers and requesting raw materials from inventory.

ERP Material

Name: ERP Material
Description: Business processes included in Enterprise Resource Planning (ERP) that help manufacturing firms manage materials required for production.

Inventory Lot Control

Name: Inventory Lot Control
Description: A business process that tracks every piece of inventory that flows through a warehouse back to its group of origin, called a lot. ERP software allows manufacturing companies to assign unique numbers to each lot to facilitate complete tracking. See also Lot.


Name: ERP
Description: Widely used acronym for Enterprise Resource Planning.


Name: Scalability
Description: The ability to deliver more or less computing power to match business requirements. Scalability describes the ability of a process, network or software to grow and manage increased demand. A scalable system or software is adaptable to the changing needs or demands of its users or clients.

Cloud-Based MRP

Name: Cloud-Based MRP
Description: Material Requirements Planning (MRP) software that uses cloud computing to give end users real-time access to inventory and purchasing data stored and managed on secure remote servers, and the ability to run applications that use those resources to manage material requirements for production. Cloud-based MRP systems are also known as MRP Cloud and Cloud MRP.


Name: MRP
Description: Widely used acronym for Material Requirements Planning.

Standard Costing

Name: Standard Costing
Description: A method of assigning costs to inventory and products in which an expected cost is substituted for an actual cost in the accounting records, and records variances to show the difference between the two.

Moving Average Costing

Name: Moving Average Costing
Description: A method of assigning costs to inventory and products in which the average cost of each inventory item in stock is recalculated after every inventory purchase. Average costing is used for distribution and other industries where product cost changes or when required by government or industry regulations.

Manufacturing Cost

Name: Manufacturing Cost
Description: All labor, material and overhead costs required to manufacture a finished product.


Name: Lot
Description: A specific batch of an item that was received, stored, or shipped from a warehouse.

Sales and Operations Planning (S&OP)

Name: Sales and Operations Planning (S&OP)
Description: A part of supply chain planning that creates a single business plan that extends forecasting to sales, marketing, operations and finance for their collective input and adjustments. Some advanced Sales and Operations Planning also include point-of-sale and other market-related information. Sales and Operations Planning can result in greater visibility of supply and demand across the enterprise, improved inventory management, increased promotional planning, increased budget forecasting accuracy, and more efficient product lifecycle management.

Scheduling and Capacity Planning

Name: Scheduling and Capacity Planning
Description: The process of determining when and how much production capacity is needed to manufacture a product. Scheduling and capacity planning are typically integrated into manufacturing ERP software to help companies efficiently manage production based on several factors, including labor and machine availability, suppliers, waste, scrap, errors, defects, government regulations, and maintenance. Rootstock Cloud ERP for manufacturing, supply chain and distribution includes an easy-to-use drag-and-drop scheduling and capacity planning module to help firms meet changing customer demand.

Sales Order Management

Name: Sales Order Management
Description: Business processes required to place and track orders for goods or services. Sales order management is typically integrated into Cloud ERP software for manufacturing to help companies improve sales visibility and customer satisfaction, and process orders with a minimum of delays. Rootstock Cloud ERP Software for manufacturing includes a Sales Order Management ERP application module.

Salesforce Manufacturing ERP

Name: Salesforce Manufacturing ERP
Description: Enterprise Resource Planning (ERP) software designed, built and hosted on the Salesforce Cloud Platform. When combined with Salesforce Customer Relationship Management (CRM) software, Cloud ERP for manufacturing allows a consistent set of customer data to be shared across all of the departments in a manufacturing company. Cloud ERP on Salesforce from vendors like Rootstock Software gives manufacturing companies access to secure, real-time data so that inventory, supply chain and production managers can act on the same information to solve issues before they become significant problems. The ability to connect to a single set of customer data also breaks down departmental silos that serve as traditional obstacles to improvements in efficiency, productivity and growth. Additionally, manufacturing firms can add more software applications to their Salesforce ERP from the Salesforce AppExchange to extend their Salesforce ERP solution.