What does Ready Stock Mean? Here are the Pros and Cons that You Should Know

The meaning of ready stock may still be unknown to some people. The term ready stock can be found when you want to shop online. Ready stock itself refers to the availability of a product that can be purchased and ready to send on the marketplace, website, or e-commerce. However, it is possible that the term ready stock is also used in offline stores.

So that you are not confused when you want to shop online, it is better to get to know more about what ready stock is in this article. Here,  TransTRACK will invite you to dissect in detail about the meaning of ready stock, its advantages and disadvantages, and the difference with the pre-order system.

Meaning of Ready Stock

Ready stocks has a simple meaning, namely as goods that are available or ready to be sent. In Indonesian, ready stocks can be interpreted as goods that are already in stocks or warehouse, ready to be processed and shipped to customers.

It’s important to understand this concept, especially for online customers who often encounter this term when shopping. Understanding what ready stock means can help us make smarter decisions when shopping online.

Advantages of Ready Stock

When discussing the advantages of a ready stocks system, we must understand that this concept is not just a term but also a strategy that provides a number of benefits to both customers and sellers. Here are some of the advantages of ready stocks:

Fast and Efficient Delivery

One of the main advantages of ready stocks is its ability to provide fast and efficient delivery. With items already in stock, the packaging and shipping process can begin as soon as payment is received. This is very beneficial for customers who want items immediately without having to wait for production time or stock collection.

Flexibility in Meeting Customer Demand

The ready stocks system gives sellers flexibility in meeting customer demand. By having ready stocks items at any time, sellers can more easily cope with spikes in demand or sudden orders without having to wait for the production process. This provides flexibility in responding to the market and customer needs.

Minimize the Risk of Delivery Delays

Delivery delays are often a source of disappointment for customers. With ready stocks, the risk of delays can be minimized because the goods are already in the warehouse and ready to be shipped. This provides certainty of delivery time and can increase customer satisfaction.

Simplifies Business Planning

For sellers, ready stock makes business planning easier. They can more accurately predict demand, manage inventory, and make business decisions based on more stable data. This helps in operational efficiency and overall business management.

Disadvantages of Ready Stock

Besides having a number of advantages, ready stocks also has disadvantages or challenges that need to be considered in its application. Let’s examine in more detail what are the disadvantages of ready stocks. Check out the following explanation:

Limited Product Variants

One of the drawbacks often faced in the ready stocks system is the limited product variants. A store or company may only have a certain quantity of a product. If the product runs out, customers will have to wait for a restock or look for alternatives. This can be a bottleneck especially for customers looking for variety or more specific options.

Potential Overstock

Excess stock or overstock is also a potential drawback in the ready stock system. Too many items in stock can lead to wastage and potential losses for the seller. Items that sit in a warehouse for too long can lose value, especially if the product has a use-by date or fast-changing trends.

Inefficient Inventory Management

Although a ready stocks system provides  speed of delivery, inefficient inventory management can be a drawback. Irregular stock updates or lack of real-time monitoring can result in inaccuracies in inventory information. This may result in unexpected stock shortages or errors in  inventory management.

Not Suitable for Perishable Products

A ready-stock system may not be suitable for products that are perishable or have a short shelf life. For example, fresh food products or items that have a short lifespan may be better suited to a pre-order delivery model to ensure freshness.

Difference between Ready Stock and Pre-Order

Ready-stock and pre-order are two different purchasing systems in a business transaction. Here are the differences between the two:

Product Availability Time

The fundamental difference between ready stock and pre-order lies in the timing of product availability. In ready stock, the product already exists and is ready to be shipped, while pre-order involves ordering a product that does not yet exist and requires production time before it can be shipped.

Demand Flexibility

Ready stock is flexible to steady demand and can process deliveries quickly. While pre-orders provide flexibility in planning production based on demand, but require longer lead times for customers.

Product Variant Availability

In a ready stock system, the availability of product variants depends on the existing stock. Variations are limited by the availability of goods. Pre-orders, on the other hand, have the potential to offer a wide range of product variants, especially if there is sufficient demand.

Despite its advantages and disadvantages, the ready stock concept has become the foundation for many modern online businesses. Speed and product availability are key in meeting customer expectations.

In the ever-evolving digital era, the implementation of Logistic Service Integrator (LSI) technology has become key in optimizing ready stock management. LSI utilizes the latest technology to simplify inventory management, minimize the risk of shortages or overstocks, and respond quickly to changes in a dynamic market. All the benefits in Logistic Service Integrator technology you can get at  TransTRACK. Request a free demo now and experience the ease of managing an efficient and effective ready stock system!