Glossary by VNDLY
Inventory & Order Management Glossary
Plain-English definitions of the terms that come up when you run stock and orders. No jargon, no fluff. Each term links to the tools and guides that put it into practice.
- SKU (Stock Keeping Unit)A unique internal code that identifies one specific product variant so you can track and reorder it.
- Safety StockExtra inventory held as a buffer against demand spikes and supplier delays so you do not run out.
- Reorder PointThe stock level at which you should place a new order so it arrives before you run out.
- Lead TimeThe total time between placing a purchase order and having that stock available to sell.
- BackorderAn order for a product that is temporarily out of stock, to be fulfilled once it is replenished.
- StockoutWhen a product is completely unavailable to sell because inventory has run to zero.
- GTIN (Global Trade Item Number)A globally unique product identifier (the number behind UPC and EAN barcodes) issued via GS1.
- BarcodeA machine-readable pattern that encodes a number or text so an item can be scanned quickly.
- UPC (Universal Product Code)The 12-digit retail barcode standard used in the US and Canada, encoding a GTIN.
- Cycle CountCounting a small subset of inventory on a regular rotating schedule instead of one big annual stocktake.
- Dead StockInventory that is not selling and is unlikely to sell, tying up cash and space.
- COGS (Cost of Goods Sold)The direct cost of the products a business actually sold during a period.
- EOQ (Economic Order Quantity)The order size that minimises the combined cost of ordering and holding inventory.
- Purchase Order (PO)A formal document a buyer sends a supplier to order goods at agreed quantities and prices.
- Product VariantA specific version of a product (size, colour, material) that is tracked as its own item.
From definitions to a real system
Knowing the terms is step one. VNDLY puts them to work: track stock across locations, set reorder points, scan barcodes with your phone, and automate purchase orders.