Stockout
Quick answer
A situation where a requested product is not available in stock, causing lost sales and dissatisfied customers.
Key takeaways
- Reorder point or safety stock set wrong
- Physical stock out of sync with the system
- Underestimated lead time
What a stockout is
Stockout occurs when demand for a SKU cannot be met from available stock. The result: cancelled order, lost sale, backorder or a customer moving to a competitor.
Why it matters to the board
Stockouts hit revenue (lost sale) and loyalty (unhappy customer) at once. On marketplaces, a high out-of-stock cancellation rate can lead to account suspension.
Common causes
- Reorder point or safety stock set wrong
- Physical stock out of sync with the system
- Underestimated lead time
How CRMconnect helps
CRMconnect keeps available stock (ATP) synced in real time across all channels and triggers replenishment at the reorder point, reducing stockouts and marketplace cancellations.
Real-world example
A seller had a 3.8% cancellation rate on a marketplace due to out-of-sync stock, risking suspension. After real-time syncing through CRMconnect, the rate dropped to 0.3% in 30 days.
Last updated:
Frequently asked
How do I cut stockouts without overstocking?+
Through reorder point and safety stock calibrated on real demand and lead time, plus available stock synced across channels - exactly what CRMconnect orchestrates.
What is a phantom stockout?+
When the system shows stock but the product isn't physically findable (misplaced, damaged). Regular cycle counting prevents it.
Where CRMconnect fits
Related terms
Safety stock
Extra buffer inventory held to prevent stockouts caused by demand or supply variability.
OperationsReorder Point (ROP)
The stock level at which a new order must be placed to avoid a stockout before goods arrive.
OperationsFill rate
The percentage of customer demand fulfilled fully from stock at first delivery, without backorder - a key service-level metric.
OperationsBackorder
Order accepted but not deliverable from current stock - fulfilled at a known future date.