Active stock in logistics refers to the physical inventory of a company’s goods that are available for picking, sale or shipment. This includes the products that are currently in the warehouse, as well as products that are on order and scheduled to arrive in the near future.
The active stock in logistics is an important metric for companies that sell goods because it represents the amount of product that is available to be sold. Companies may also use this metric to track how much inventory they are selling and whether they need to place new orders with their suppliers.
Active stock is contrasted with passive stock, which describes inventory that is not being actively managed and is instead sitting on the shelves waiting to be sold. Passive stock can often include products that are in low demand or have a long shelf life.
By keeping an active stock of products, businesses can improve their chances of meeting customer demand and avoid running out of popular items. It also helps to reduce the amount of time needed to restock these items, which can save on labour costs and improve overall efficiency.