What is a stockout and how can you avoid it?

A stockout occurs when an item is no longer available at the moment a customer—or a production line—needs it. This leads to missed sales and can harm customer satisfaction. To prevent stockouts, it’s important to rely on accurate demand forecasts, maintain adequate safety stock, and monitor inventory levels in real time. Collaboration with suppliers (to reduce lead times or secure faster replenishments) and the use of alerting tools can also help avoid these situations.