Industry Terms

Reading Time: < 1 minute If the demand for inventory of an item is dependent upon another item, such demands are categorized as “dependent demand.” Raw materials and component inventories are dependent upon the demand for finished goods and hence can be called dependent demand inventories.

Reading Time: < 1 minute Distribution requirement planning is the methodical process of calculating the amount of inventory required at various facilities based on the predicted demand for the products. Using effective planning, it is possible to efficiently deliver goods to multiple locations.

Reading Time: < 1 minute Warehouses with inventory and other physical distribution facilities for moving goods to different locations or clients within the supply chain management are known as distribution centers.

Reading Time: < 1 minute Distributed inventory refers to the idea of splitting up shipments of inventory that need to be sent to retailers. For the retailer’s convenience, these shipments are sent separately. Inventory can be sent to all the locations where it is required by splitting it up into numerous shipments.

Reading Time: < 1 minute A method of delivering goods directly from the supplier to the customer is known as direct shipping. The seller only provides the supplier with delivery information when a product is shipped directly from the manufacturer; all other arrangements are made by the supplier. 

Reading Time: < 1 minute The process of digital transformation involves businesses adjusting to or developing new digital business strategies, products, and services to promote innovation, revenue growth, customer satisfaction, and other advantages. 

Reading Time: < 1 minute Destocking is the process of lowering inventory levels or getting rid of specific products from the shelves. The process of actively deciding to reduce a company’s inventory-to-sales ratio is known as active destocking.

Reading Time: < 1 minute Demand planning software forecasts the demand for a product or service so it can be produced and delivered more efficiently to fulfill customer demand. This software is mostly used to plan supply chain management. Demand planning software combines all the past sales data, important business information, and statistical analysis.

Reading Time: < 1 minute In economics, “demand” refers to the quantity of a good or service that consumers are willing and able to purchase at a given price and within a specific time period. It represents the desire and ability of buyers in the market to acquire a particular product. The demand for a product is influenced by various […]

Reading Time: < 1 minute Outdated inventory is aged beyond the expiration date and not in a sellable condition.

Reading Time: < 1 minute Dropshipping is a form of retail fulfillment where a business owner doesn’t keep inventory of the goods it sells. Instead, it makes a purchase from a third party and arranges for the item to be delivered to the customer when the order comes from the end customer. The seller is spared from having to handle […]

Reading Time: < 1 minute Decoupling inventory refers to the practice of product manufacturers setting aside extra raw materials or work-in-progress items for all or some stages of a production line so that a low stock condition or breakdown at one stage won’t slow down or halt production.

Reading Time: 2 minutes A digital software system makeover or digital transformation refers to the process of successfully moving to an efficient, automated, modern software system from antiquated, poorly performing software and manual business processes. This involves a process of thoroughly evaluating, designing, and replacing an existing digital software system to better performance, greater user engagement, and overall business […]