Business Intelligence and FMCG Glossary: #stockintrade
Stock in Trade
What is the “stock in trade”?
The “Stock in trade” is the number of products available in a distributor’s network of stores and/or warehouses.
It is one of the fundamental KPIs of a Business Intelligence too for manufacturers or distributors of consumer products. It is calculated by subtracting the quantities sold to the shopper / consumer (sell out) from the quantities delivered to the distributor (sell in).
For a manufacturer of consumer products, it is essential to take this data into account for demand planning and forecasting of future orders (sell in) to a distributor that will condition the manufacturing plan of the production units.
It is also very useful to anticipate the possible returns of a distributor at the end of a seasonal campaign (Christmas, Easter) or plan a change of collection or the speed of increase in distribution of an innovation SKU replacing an existing reference.
