Glossary Blog

Economic order quantity (EOQ) formula

Hook Webmaster — Tue, 31 Jan 2023 12:02:39 GMT

What is Economic order quantity (EOQ)?

Economic order quantity (EOQ) is the optimum number of products that a business should purchase in order to minimize holding and ordering costs. Knowing the EOQ can help businesses save a significant amount of money through cost optimization. Economic order quantity is sometimes known as Economic purchase quantity.

Freight

Hook Webmaster — Tue, 31 Jan 2023 12:00:03 GMT

What is freight transport?

Freight transport describes the way freight is moved from one place to another. This is a physical process, wherein goods are shipped from land, sea, or air — meaning it includes transportation by train, truck, ship, or plane. Freight shipping services constitute any shipment with more than 150 pounds of cargo; freight transport, then, moves a bulk quantity of goods or commodities across either domestic or international lines.

Inventory in transit

Hook Webmaster — Tue, 31 Jan 2023 11:52:18 GMT

What is inventory in transit?

Inventory in transit — also called transit, transportation, or pipeline inventory — is a shipping term that refers to the finished goods that have been shipped by a seller, but have yet to reach the buyer. As the name suggests, inventory items are in ‘transit’ to their destination as well as their respective recipient. Many times, the goods are moving from a wholesaler to an ecommerce retailer (who then becomes a reseller). This phrase is primarily used by the company that’s responsible for selling and shipping the product.

Detail Page Views (DPV)

Hook Webmaster — Tue, 31 Jan 2023 11:48:22 GMT

What is Detail Page Views (DPV)?

Detail page views (DPV) are a popular metric that reveal the number of clicks or impressions on a single detail page of an advertised product. In other words, a DPV occurs when a shopper visits a product detail page after clicking on a targeted ad to get there. With this information, marketing teams have a better understanding whether their advertisements are really working — i.e. if they’re driving customers to collect more details about a particular product or service.

Retail Price

Hook Webmaster — Tue, 31 Jan 2023 11:29:28 GMT

What is the retail price?

Retail price is the final price of an item that’s sold to a customer, who is the end user or consumer of that product. In general, the term 'retail price’ is used to differentiate from intermediate prices that are paid upward in the supply chain. When determining their prices, retail outlets consider both supply and demand and profit margins, while also trying to set different prices in comparison to their competitors. Many times, a distributor or manufacturer will offer a suggested retail price, to help ensure it’s aligned with the overall marketing strategy.

Raw Materials

Hook Webmaster — Tue, 31 Jan 2023 11:27:00 GMT

What are raw materials?

Raw materials are the basic materials used in the production or manufacturing of finished goods. As an inventory asset, raw materials are in-demand commodities that are bought and sold in real-time on the factor market. A company’s raw materials inventory can be used to create an array of products, yet the type of materials required will depend on the needs of their manufacturing processes, as well as their efforts toward sustainability.

Kitting

Hook Webmaster — Tue, 31 Jan 2023 11:24:43 GMT

What is kitting?

Kitting is a warehouse and inventory management technique where individual products are assembled and shipped together as a single bundle or SKU. When an ecommerce company uses kitting, similar items are grouped in a custom package or ready-to-ship unit, rather than picking and packing products one-by-one. For this reason, kitting offers significant savings on labor costs, and helps streamline fulfillment operations in a big way. Kitting has become incredibly popular with online marketplaces like Amazon and similar retail chains.

Holding Costs Formula

Hook Webmaster — Tue, 31 Jan 2023 11:21:51 GMT

What are holding costs?

Holding costs are expenses to store and hold inventory in a warehouse until it’s sold to the consumer. Also called carrying costs, holding costs are an important metric related to total inventory costs — right along with ordering costs and shortage costs. A company’s inventory holding costs typically include fees for storage space, labor, and insurance. Minimizing unsold inventory (and therefore, your holding costs) is a critical part of any warehousing or supply chain management strategy.

Made To Stock

Hook Webmaster — Tue, 31 Jan 2023 11:18:45 GMT

What does Made to Stock (MTS) mean?

Made to Stock (MTS) is a production strategy used by retail businesses to match their inventory levels with projected consumer demand. Rather than establishing a production level and then attempting to sell those goods, a brand using an MTS approach would estimate how many orders its products could generate, and then provide enough available stock to effectively meet those orders. It’s worth noting the MTS method requires accurate demand forecasting to determine how much stock it produces; when future demand can be adequately estimated, then the MTS strategy will be an efficient option for the manufacturing process.

WISMO

Hook Webmaster — Tue, 31 Jan 2023 11:13:48 GMT

What does WISMO stand for?

In the world of ecommerce, the acronym WISMO stands for: ‘Where is my order?’ These sorts of calls occur whenever a customer feels out of the loop with their order delivery. Nearly half of all inbound calls to customer support centers are WISMO-related, however, the key to understanding these inquiries is to realize they’re not actually the issue itself. Instead, WISMO calls are the result of a miscommunication with the post-purchase experience, and perhaps an indication that too few order status updates have been relayed to the customer.