Glossary
For Users of VOIDS

Buffer

An extended buffer time period on top of the lead time for an order to arrive.

Capital efficiency

Necessary bound inventory / Total bound cash.

Cash needed before 7 days

Cash needed for the upcoming purchase orders that need to be placed within the next 7 days.

Cash needed after 7 days

Cash needed for the upcoming purchase orders that need to be placed after the next 7 days.

COGS

Abbreviation for “Cost of goods sold”. In VOIDS app Purchase Price and COGS are treated equally. This is referring to the costs of purchasing the product variants from your supplier.

Lead time

The time it takes for a purchase order to arrive if you order it today.

Lost revenue / profit

Calculated by the demand that cannot be fulfilled due to out of stock. This is calculated for the timeframe between the OOS date and lead time where incoming purchase orders that will be delivered during this time are also taken into account.

Necessary bound inventory / cash:

The amount of products that need to be available in the inventory to fulfil the demand until the lead time + buffer date. This is referring to the stock kept in your warehouse that VOIDS considers “effective” to supply your future demand in consideration of your future demand and lead times. This is measured in units * its respective COGS.

New product introductions (NPI)

NPIs are product variants, that are newly being introduced to the product portfolio and do not have any historical sales yet.

Out of stock date (OOS date)

For each product variant and warehouse combination, VOIDS calculates an out of stock date based on the future demand for that product variant from the sales channel the warehouse can fulfil. This out of stock date considers incoming purchase orders and current stock.

OOS

Abbreviation for “Out-of-Stock”

OS

Abbreviation for “Overstock”

PO

Abbreviation for “Purchase Order”.

Releasable bound inventory / cash

The amount of products that are currently available in the inventory / current stock that are unnecessary. This is referring to the share of stock held in your warehouse that beyond what is needed to supply the demand in consideration of your future demand and lead times. This is measured in units * its respective COGS.

Total attributable cash planned

Total cash that is planned for future purchase orders, which can however be reattributed to other business operations. This is based amount of unnecessary purchase order volume that are already placed.

Total bound inventory / cash

COGS of all products currently staying in the warehouse. Total bound cash = Necessary bound inventory + Releasable bound inventory

Total cash needed

This is referring to the cash needed to pay for the necessary purchase orders of new product variants. These purchase order volumes are based on the reorder recommendations.