It’s time for class!
We present Prediko’s Inventory glossary. Building an eCommerce business is enough of a feat without getting lost between terms that feel confusingly similar, and our glossary is here to help you get off on the right foot. Share this with all teams so no one goes pale when the word SKU enters the chat.
Revenue: The total income gained
Forecast revenue: A prediction of what the income gained could be over a specific time period, based on the purchase orders outstanding and replenishment rates
Sales: The number of units sold historically
Forecast sales: A prediction of future sales over a specific time period, based on the purchase orders outstanding and replenishment rates
COGS (Cost of Goods Sold): The historical cost of units sold
Retail Price: The price the consumer will pay for a good
Unit Costs: The cost of an individual unit
Category: A grouping of certain products
Product: An article or substance that is manufactured or refined for sale
Raw Materials: The basic material from which a product is made
SKU/Variant: Standing for Stock Keeping Unit, these are used by retailers to identify and track inventory and goods. Made up of a unique combination of letters and numbers that determine the characteristics of the product, they allow companies to more accurately and efficiently account for all stock
Collection: A grouping of products
Days on Hand: This is a measure of how much time is needed for a business to run through its inventory
Purchase Order / PO: An official document issued by a buyer committing to pay the seller for the sale of specific products or services to be delivered in the future.
Minimum order quantity / MOQ: The minimum number of products required for purchase.
Lead time: The time it takes for production to start and finish
Payment terms: This takes the form of a document that details how and when goods should be paid for
Anything we have left out? Our glossary is a living document, which means if you want it defined, we will add it here!