New Employee Guide to Success

GLOSSARY OF COMPANY JARGON Every company has terminology they use that doesn’t make sense to an outsider. Here’s a list of some of the words and phrases we use to help you stay in-the-know. Configurator: internally, we call this Passage. It’s a quoting tool accessible by our SR customers to choose different components and options when making a purchase, such as door color or lite styles, and to submit an order request. Connect: our online ordering system for PD customers. Previously this was called WOE (web order entry). Dealer: a synonym of customer or client; who we sell our products to. Distributor: at our company, we’re in 2-step distribution which means we buy from manufacturers and then resell to other companies who then sell to an end-user. Neither division sells any products directly to a homeowner. COGS: means Cost of Goods Sold. It’s the price we paid for the product from the vendor. DIRTFT: Do It Right The First Time is a motto that’s been around for decades. EBITDA: a financial term meaning Earnings Before Interest, Taxes, Depreciation, and Amortization. Basically, it’s an indicator of the overall profitability of a business. ERP: stands for Enterprise Resource Planning. It’s a fancy word for the business management software system that a company operates from, integrating sales, operations, accounting. ESOP: Employee Stock Ownership Plan. We also use this interchangeably with employee-owned. See the Benefits section for more details. GP: means Gross Profit and refers to the money a company earns after subtracting the cost the company paid for the product from the price at which it was sold. Sometimes it’s phrased as “margin”, a percentage, or “points”. For example, selling a product at 15 points means we’re making a 15% profit above the cost of the product. KPI: stands for Key Performance Indicator. KPIs provide a way to measure how our company, divisions, projects, or individuals are performing in relation to their strategic goals and objectives. An example would be the number of doors built or items pulled per day. Knowing these measures helps us determine if we’re going to meet our goals. Lite: term for the windows in doors. MSDS: Material Safety Data Sheets state chemical ingredients in a product, what precautions to take, and what to do if exposure occurs. Net Profit: represents the number of sales dollars remaining after all operating expenses, wages, interest, and taxes have been deducted from a company’s total revenue. It’s what is left over in the savings account after paying all of the bills. Queue or Job Queue: a term used with the Palmer-Donavin Eclipse/Eterm system. It means a message or task linked to a particular sales or purchase order. Open Enrollment: the period of time each year (typically November or December) that ALL employees must log into Ultipro to either enroll in or decline medical, dental, and vision insurance benefits. Pre-Finish: doors that we paint or stain before sending to the customer. POD: short for Proof of Delivery; it’s the paperwork that the customer signs acknowledging that they received the material we sent them. Retail Channel: another term for Big Box stores like Lowe’s and Home Depot. Rock: a term from Traction (see below) that means a quarterly goal. SKU: stands for Stock-Keeping Unit and is an identification, usually alphanumeric, of a particular product that allows it to be tracked for inventory purposes. Traction: a book by Gino Wickman and a management approach used by the company. You’ll hear about Traction Meetings which are weekly meetings that follow the Traction system. You can check the book out of the corporate library for more information. Vendor: a synonym of manufacturer; who we buy our products from.

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