Stockout
Also called stock-out
Reviewed by Dasha ShakovVP Marketing, Proton
Updated
What is stockout?
A stockout is a situation in which a distributor has none of an item available to sell when a customer wants it. Stockouts lead to backorders, substitutions and lost sales, and when they repeat, to lost customers.
Stockout example
With zero breakers available and a customer asking for 20, the CSR transfers 12 from another branch, offers a substitute for the other 8, and records the missed demand for the buyer.
Related terms
- BackorderA backorder is the quantity on a customer’s order that a distributor has agreed to supply but can’t ship yet, kept open until stock arrives.
- Fill rateFill rate is the percentage of ordered goods a distributor ships straight from its shelves on the first delivery, before any backorders arrive.
- Safety stockSafety stock is extra inventory a distributor keeps to cover unexpected demand or late supplier deliveries, so it doesn’t run out before the next shipment.
- Substitute itemA substitute item is a different product shipped in place of the one ordered because it does the same job, such as another brand with the same specs.
- Branch transferA branch transfer is a movement of stock from one of a distributor’s locations to another, recorded in the ERP so that inventory stays accurate at both.
