Ecommerce Fulfilment Services

Stockout

stockout

A stockout, also known as an out-of-stock situation, is a situation where an item that is expected to be in stock is not. In the fulfilment industry, this directly impacts customer satisfaction and overall business operations.

A stockout typically occurs when demand exceeds supply. This could be due to inaccurate inventory management, unexpected spikes in demand, or supply chain issues. When a stockout occurs, it not only leads to lost sales but can also damage a company’s reputation, as customers may turn to competitors to meet their needs.

Preventing Stockouts

Preventing stockouts is a key aspect of inventory management. This can be achieved through accurate demand forecasting, efficient inventory management practices, and having a responsive supply chain. Technologies such as real-time inventory tracking and automated reordering can also help in preventing stockouts.

More Fulfilment Terms

The in-stock rate (IRS) measures the percentage of time that products are available for sale and not out of stock
A fulfilment network refers to a system of warehouses and distribution centres that work together to store, pack, and ship products to customers.

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