Stockout
Also known as: out of stock
When a product is completely unavailable to sell because inventory has run to zero.
A stockout happens when demand for a product exists but you have zero units available to fulfil it. It is the outcome inventory management exists to prevent, because a stockout means lost sales and, often, a customer who buys from a competitor instead.
Stockouts are usually caused by underestimating demand, underestimating lead time, or reacting to reorder needs too late. The cost is not just the missed sale; repeated stockouts erode customer trust and can push shoppers to substitute permanently.
The defences against stockouts are accurate reorder points, appropriate safety stock, and a system that watches stock levels for you rather than relying on someone noticing an empty shelf.
Put it into practice
Related terms
- 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.
- BackorderAn order for a product that is temporarily out of stock, to be fulfilled once it is replenished.
Run it in one system
VNDLY tracks stock, orders, and suppliers together so terms like this stop being theory and start being automatic.