Aggregation cluster
A managed group of smaller businesses coordinated as one purchasing and replenishment unit. Clustering improves buying power, delivery density, and service consistency while preserving store-level accountability.
Reference
Glossary of Terms
A comprehensive reference of core supply chain, inventory, and execution terminology used across the platform and customer conversations.
49 terms
Available-to-promise (ATP)
The quantity of product that can be committed to customers based on current stock, inbound supply, and existing reservations. ATP helps teams make realistic commitments and avoid overpromising.
Batch and lot tracking
The practice of recording inventory movement by batch or lot identifier from supplier through downstream nodes. It enables targeted recalls, expiry control, and audit-grade traceability.
Connected supply network
A shared operational network linking suppliers, warehouses, transport flows, and stores through common data and execution processes. It improves coordination speed and reduces planning blind spots.
Cycle count
A recurring inventory verification process where selected SKUs are counted throughout the year instead of relying only on full stocktakes. Cycle counting improves record accuracy with less operational disruption.
Days inventory outstanding (DIO)
A measure of how many days inventory is held on average before being sold or consumed. Lower DIO can release working capital, while very low DIO may increase stockout risk if buffers are inadequate.
Demand sensing
Using near-real-time demand and external signals, such as sales velocity, promotions, and local events, to adjust short-horizon forecasts. Demand sensing helps teams react faster than periodic planning cycles.
Demand variability
The degree to which demand fluctuates over time by SKU, location, or channel. High variability requires tighter planning controls, dynamic buffers, and faster decision loops.
Digital proof of delivery (ePOD)
Electronic confirmation that a shipment has been delivered, usually with timestamp, geolocation, and receiver sign-off. ePOD strengthens dispute resolution, billing confidence, and service visibility.
Distribution requirements planning (DRP)
A planning method that determines replenishment timing and quantities across a distribution network based on demand forecasts and inventory policies. DRP aligns upstream supply with downstream service needs.
Dynamic safety stock
A safety stock policy where buffer levels are recalculated as demand, lead time, and service targets change. This avoids static buffers that are either too high or too low for current conditions.
End-to-end visibility
The ability to monitor inventory, orders, shipments, and service performance across the full supply flow from supplier to customer-facing outlet. It reduces reaction time and exposes root causes earlier.
Execution loop
A continuous cycle of signal capture, planning, execution, exception handling, and performance review. Mature loops reduce latency between knowing and acting.
Expiry risk
The risk that product reaches expiry or obsolescence before sale or use due to low rotation, poor allocation, or excessive buys. Managing expiry risk protects margin and compliance.
Fill rate
The percentage of ordered quantity that is fulfilled immediately from available stock. Fill rate highlights service quality at line level and helps diagnose hidden availability issues.
First-expiry, first-out (FEFO)
A stock issuing rule that prioritizes items with the earliest expiry date, regardless of receipt date. FEFO is critical in food, pharmaceutical, and regulated categories.
Forecast accuracy
A measure of how closely forecasted demand matches actual demand over a period. Accuracy should be reviewed with bias and service outcomes, not as a standalone metric.
Forecast bias
A persistent tendency for forecasts to be systematically higher or lower than actual demand. Bias drives recurring overstock or stockout patterns if not corrected.
Formal trade
Structured retail and distribution channels that operate with standardized commercial, financial, and operational controls. Formal trade typically has stronger process discipline and system integration.
Fulfilment lead time
The elapsed time between order confirmation and successful delivery at the receiving node. It combines picking, dispatch, transport, and receipt processes.
Informal trade
Independent and less-structured merchant channels, often with fragmented procurement and limited systemization. Informal trade requires flexible service models and aggregation mechanisms.
Inventory health
A composite view of inventory quality across freshness, rotation, coverage, aging, and service readiness. Healthy inventory is usable, right-sized, and correctly positioned.
Inventory optimisation
Balancing stock levels, service targets, lead-time uncertainty, and constraints to reduce stockouts and excess. The objective is not minimum stock, but best service-cost tradeoff.
Inventory turns
How many times inventory is sold or consumed and replenished during a period. Higher turns generally indicate better capital efficiency, provided service levels remain stable.
Last-mile logistics
The final delivery stage from distribution point to retail outlet or end customer. It is often the most expensive and operationally variable part of fulfilment.
Lead time
The total elapsed time between triggering an order and making inventory available at the next node. Lead time variability is often more damaging than average lead time.
Micro-business aggregation
The practice of combining demand from small or informal businesses into coordinated buying and replenishment programmes. Aggregation lowers supply cost-to-serve while preserving local market reach.
Minimum order quantity (MOQ)
The smallest order quantity a supplier or policy allows for a product. MOQ constraints must be balanced against demand patterns and storage capacity to avoid avoidable excess.
On-shelf availability (OSA)
The percentage of time customers can find a product available for purchase on shelf. OSA reflects both upstream supply performance and in-store execution quality.
OTIF
On-time, in-full delivery performance against agreed date and quantity commitments. OTIF is a core service metric for supplier and transport performance.
Overstocks
Inventory levels that exceed expected demand over a practical horizon and increase carrying, markdown, or expiry risk. Overstock is often caused by forecast bias, MOQ pressure, or poor allocation.
Point of sale (POS)
The system and process where transactions are completed and sales signals are captured. Reliable POS data is foundational for demand sensing and replenishment logic.
Procurement
The end-to-end process of sourcing suppliers, placing purchase orders, and managing inbound supply commitments. Strong procurement aligns commercial terms with operational service needs.
Purchase order (PO)
A formal request issued to a supplier specifying products, quantities, prices, and delivery terms. The PO is a key control document for commercial and operational execution.
Reorder point
The inventory threshold that triggers replenishment based on expected demand during lead time plus safety stock. Correct reorder points reduce both stockout risk and over-ordering.
Replenishment
Planning and executing stock movement to maintain targeted availability across supplier, warehouse, and store nodes. Effective replenishment closes the gap between demand signals and physical flow.
Role-based access control (RBAC)
A security model where users receive permissions based on role rather than individual assignment. RBAC improves governance, auditability, and segregation of duties.
Route optimisation
Designing delivery sequences and routes to meet service targets at lowest feasible time and cost under real-world constraints. Optimized routing improves fleet utilization and delivery reliability.
Safety stock
Buffer inventory held to absorb uncertainty in demand and lead time. Safety stock should be tuned by service policy, demand volatility, and supply reliability.
Service levels
Targeted standards for availability and fulfilment performance, often defined by customer promise or category criticality. Service targets guide stocking policy and exception priorities.
SKU rationalisation
The process of reviewing and reducing low-value or duplicative products to improve focus, turns, and operational simplicity. Rationalization can improve availability for core items.
Stock cover
The number of days or weeks current inventory can satisfy expected demand. Stock cover helps planners compare exposure across items and locations.
Stockout
A condition where demanded inventory is not available at the point of need. Stockouts reduce revenue, damage customer trust, and can distort forecast signals.
Store-level visibility
Operational visibility at individual outlet level for demand, inventory position, and replenishment status. It enables targeted intervention rather than network-level averages.
Supplier performance
Assessment of supplier reliability across lead time adherence, fill rate, quality, and consistency. It informs sourcing decisions and collaboration priorities.
Supplier-to-store connectedness
A synchronized signal and execution loop that links supplier commitments to store demand and outcomes. Connectedness reduces latency and improves service resilience.
Traceability
The ability to follow a product's origin, movement, and handling history across the network. Traceability supports compliance, recall readiness, and quality assurance.
Transportation management system (TMS)
Software used to plan, execute, and monitor transport operations, including routing, dispatch, carrier control, and delivery performance. TMS capabilities are central to scalable last-mile control.
Working capital
Capital tied up in day-to-day operations, especially inventory, receivables, and payables. Better supply execution can reduce working capital without sacrificing service.