Non-stock item
Also called nonstock item
Reviewed by Dasha ShakovVP Marketing, Proton
Updated
What is non-stock item?
A non-stock item is a product the distributor sells but doesn’t keep on its shelves, ordering it from the supplier only when a customer asks for it. The opposite, a stock item, is kept in inventory and replenished routinely.
How it works
A customer order for a non-stock item is a special order. When the same non-stock item keeps getting ordered, the buyer may decide to start stocking it.
Non-stock item example
A branch sold the same non-stock fixture on eight special orders in six months, so its buyer adds it to stock with a small minimum.
Related terms
- Special orderA special order is an order for an item the distributor doesn’t keep in stock, bought from the supplier specifically for one customer.
- Drop shipmentA drop shipment is an order the distributor sells but has the manufacturer ship straight to the customer, so the goods never pass through its warehouse.
- Lead timeLead time is the time between placing an order and receiving the goods.
- Min/maxMin/max is a simple replenishment method in which each item has a minimum and a maximum stock level that trigger and size each new order.
