Understanding Product Statuses
Product Statuses tell you the current health of your inventory at a glance. Learn what each status means and what action to take.
Quick Reference
| Status | Meaning | On-Hand Level | Action |
|---|---|---|---|
| Healthy | Balanced inventory | Optimal range | Monitor normally |
| Running Low | Approaching reorder point | Below optimal | Plan to reorder soon |
| Out of Stock | Zero inventory | 0 units | Urgent action needed |
| Overstocked | Excess inventory | Excessive | Review demand forecast |
| Stock Gap | Temporary unavailability | 0 units (incoming) | Monitor incoming shipment |
Healthy
What It Means
Product has balanced inventory levels sufficient to meet demand without stockouts or excess.
On-Hand Level
- Formula: Reorder Point < On-Hand < Overstocked Threshold
- Example: 100-300 units for a mid-tier product
What to Do
✅ Monitor periodically (weekly)
✅ No urgent action needed
✅ Track sales trends
✅ Plan ahead for seasonality
Example
Blue T-Shirt:
- Reorder point: 225 units
- Current on-hand: 250 units
- Status: Healthy ✅
- Action: Monitor, reorder when approaching 225
Running Low
What It Means
Product is approaching its reorder point. You should plan to create a purchase order soon to avoid stockouts.
On-Hand Level
- Formula: On-Hand ≤ Reorder Point
- Example: 225 units or less (for product above)
- Timeline: Usually 7-20 days until stockout (depends on sales rate)
What to Do
⚠️ Check lead time (how long until shipment arrives)
⚠️ Create purchase order soon
⚠️ Monitor daily for Grade A products
⚠️ Plan for incoming stock
Example
Blue T-Shirt:
- Reorder point: 225 units
- Current on-hand: 200 units
- Status: Running Low ⚠️
- Lead time: 30 days
- Action: Create PO today (shipment arrives before stockout)
Timeline
Days Until Stockout: On-Hand ÷ Average Daily Sales
- If > 15 days: Less urgent, can wait a few days
- If 7-15 days: Moderately urgent, reorder soon
- If < 7 days: Very urgent, reorder immediately
- If < 3 days: Critical, expedite order if possible
Out of Stock
What It Means
Product has zero available inventory. You cannot fulfill orders. Revenue is at risk.
On-Hand Level
- Value: 0 units
- Status: No stock available
- Incoming: May or may not have shipment coming
What to Do
🚨 URGENT ACTION NEEDED
🚨 Create purchase order immediately
🚨 Contact customers (if applicable)
🚨 Consider expediting shipment
🚨 Review why stockout happened
Prevention
Best practice: Never let grade A products hit "Out of Stock"
- Monitor Running Low daily
- Create PO when Running Low appears
- Don't wait until Out of Stock
Example
Blue T-Shirt:
- On-hand: 0 units
- Status: Out of Stock 🚨
- Impact: Cannot fulfill customer orders
- Loss: ~$5,000/day in missed revenue
- Action: Call supplier, expedite shipment, communicate with customers
Overstocked
What It Means
Product has excess inventory beyond what's needed. Capital is tied up unnecessarily.
On-Hand Level
- Formula: On-Hand > Overstocked Threshold
- Default threshold: 100-120 days of inventory
- Example: > 600 units for a product selling 5/day
What to Do
📉 Review demand forecast
📉 Consider running promotions
📉 Check if forecast has changed
📉 Plan clearance/bundling
📉 Adjust future orders
Causes
- Forecast error (expected higher demand)
- Seasonal decline (season changed)
- Discontinued planning (product being phased out)
- Over-ordering (ordered too much in PO)
Example
Winter Boots:
- On-hand: 800 units
- Average daily sales: 2 units/day
- Days of inventory: 800 ÷ 2 = 400 days (overstocked)
- Threshold: 120 days
- Status: Overstocked 📉
- Cause: Season ended, demand dropped
- Action: Run clearance sale, adjust future orders
Stock Gap
What It Means
Temporary unavailability of inventory due to supply chain delays. You're waiting for incoming stock but don't have inventory now.
On-Hand Level
- Value: 0 units (or very low)
- Incoming: Shipment expected (10-60+ days)
- Timeline: Waiting for purchase order to arrive
Why Stock Gaps Happen
- Lead time too long (forecast stockout date < lead time)
- Reorder too late (waited until last minute to order)
- Supplier delay (shipment delayed beyond lead time)
What to Do
🔄 Monitor expected delivery date
🔄 Track incoming shipment
🔄 Communicate with supplier if delayed
🔄 Prepare inventory when shipment arrives
🔄 Review: Could this have been prevented?
Example
Winter Boots:
- On-hand: 0 units
- Status: Stock Gap (not "Out of Stock")
- Incoming: PO placed 30 days ago, arrives in 15 days
- Days in gap: 15 days
- Expected arrival: January 18
- Revenue lost: ~$2,000 (estimated based on demand)
- Action: Monitor arrival, prepare warehouse, prevent future gaps
Prevention
Avoid stock gaps by:
- Reordering when Running Low (not waiting until Out of Stock)
- Accounting for lead time in reorder point
- Keeping safety stock buffer
- Using stockout forecast to plan ahead
Status Changes
When Status Changes
Statuses update automatically based on:
Inventory Changes:
- Restock (increases on-hand)
- Sales (decreases on-hand)
- Manual adjustments
- Transfers between locations
Trigger Points:
- When on-hand crosses reorder point → Running Low
- When on-hand reaches 0 → Out of Stock
- When incoming shipment received → Back to Healthy/Running Low
- When on-hand exceeds threshold → Overstocked
Daily Monitoring
Statuses recalculate continuously as sales happen. Check your dashboard daily to see:
- How many products are Healthy
- How many are Running Low
- Any Out of Stock items
- Overstocked products
- Stock Gap items
Real-World Dashboard Example
Your current inventory (sample):
Healthy: 245 products ✅
Running Low: 23 products ⚠️
Out of Stock: 1 product 🚨
Overstocked: 18 products 📉
Stock Gap: 2 products 🔄
────────────────────────
TOTAL: 289 products
What to do now:
- ✅ Healthy: No action needed
- ⚠️ Running Low: Create POs (especially Grade A)
- 🚨 Out of Stock: Urgent - expedite reorders
- 📉 Overstocked: Review forecasts, run promotions
- 🔄 Stock Gap: Monitor delivery dates
Using Statuses Effectively
Daily Workflow
-
Check Dashboard (5 minutes)
- Count by status
- Note any new Out of Stock items
- Identify urgent Running Low
-
Create Purchase Orders (15 minutes)
- Focus on Grade A Running Low
- Include Grade B if Running Low
- Can defer Grade C unless approaching Out of Stock
-
Monitor Stock Gaps (5 minutes)
- Check expected arrivals
- Follow up if delayed
- Prepare for receipt
-
Review Overstocked (Weekly)
- Evaluate each overstocked item
- Plan promotions/clearance
- Adjust forecast if needed
Weekly Workflow
- Review full Running Low list
- Assess overstocked items
- Plan upcoming purchase orders
- Check supply chain timeline
Monthly Workflow
- Analyze status changes
- Identify trends
- Adjust safety stock if needed
- Review forecasting accuracy
FAQ
Q: What if a product is both Running Low and Seasonal?
A: Reduce safety stock for Grade C seasonals during off-season. For Grade A, maintain safety stock even in slow seasons.
Q: Can a product be Overstocked and Running Low at the same time?
A: No. It's either above reorder point (Healthy/Overstocked) or below (Running Low/Out of Stock).
Q: How often do statuses update?
A: Continuously as sales happen. Dashboard reflects current status. Major updates daily at midnight.
Q: Should I panic when I see Running Low?
A: No. Running Low is expected and healthy. It means your system is working. Create a PO and monitor.
Q: Is Stock Gap worse than Out of Stock?
A: Stock Gap is better—you have incoming inventory. Out of Stock means nothing is coming.
Next Steps
- Check your dashboard — See your current status breakdown
- Note Running Low products — Plan purchase orders
- Investigate Out of Stock — If any exist, take urgent action
- Review Overstocked items — Plan promotion/clearance
- Track Stock Gap arrivals — Monitor delivery dates
Related Articles
- Forecasted Stockout Date — Know when you'll run out
- Safety Stock Strategy — Prevent Running Low/Out of Stock
- ABC Analysis — Prioritize which statuses matter most
- Lead Time & Reorder Points — Timing your reorders
Questions?
Contact support@synplex.io or check related concept guides.