The Anatomy of a Stockout: The Causes and Costs of Running Out

Arda Cards

Stockouts don’t happen all at once. They creep up slowly, unnoticed—until they hit at the worst possible time. One moment, your team is deep into a job; the next, someone’s holding an empty bin, wondering why no one reordered those screws.

What follows is a chain reaction of wasted time, frustration, and unexpected costs. Let’s break it down.

Step 1: The Silent Depletion

Someone used the last few screws yesterday, but no one flagged it for reorder. Maybe they assumed more were in the back. Maybe they meant to tell someone but got distracted.

In a perfect world, inventory would be updated in real time. But in reality, businesses rely on memory, quick glances, or spreadsheets that are never quite accurate.

The screw bin sits empty. No one notices. Yet.

Step 2: Discovery at the Worst Moment

Fast forward to today. Your team sets up a job, pulling out materials, tools, and hardware. The assembly is moving smoothly—until someone reaches for that screw.

It’s not there.

What now?

  1. Someone stops working to double-check storage bins.
  2. Another person asks around to see if anyone knows where more might be.
  3. The realization hits: You’re officially out.

Step 3: The Scramble to Reorder

Now, an urgent reorder is needed. That means:

  • Checking vendor lead times.
  • Weighing the cost of rush shipping.
  • Calling suppliers, hoping they have stock.

If it’s a common item, maybe you can get it tomorrow. If it’s specialty? You’re looking at a week or more.

Meanwhile, that job gets put aside.

Step 4: Downtime & Workflow Disruptions

With no screws, the team pivots to another job. But switching tasks isn’t instant:

  • You spend time reorganizing the workspace.
  • The team shifts focus, getting briefed on the new job.
  • Tools and materials are swapped out.

Two days later, the screws finally arrive! Crisis over? Not quite.

In the meantime, another part quietly stocked out. The cycle starts again.

Step 5: The Real Costs of a Stockout

The damage isn’t just lost time—it’s financial:

Rush shipping fees: Paying extra to fix an avoidable problem.

Idle labor: Workers waiting instead of working.

Task switching inefficiencies: Every pivot adds overhead.

Unhappy customers: Delays ripple into missed deadlines.

A stockout isn’t just an inconvenience. It’s an expensive, preventable problem.

How to Stop Stockouts Before They Start

Traditional ERPs demand constant manual updates—one mistake, and you’re out of luck. Instead of tracking every screw, Arda uses a simple Kanban-based Order Card system to ensure parts are reordered before they run out.

  • No spreadsheets to update.
  • No surprises when starting a job.
  • No wasted time scrambling for missing parts.

Stockouts aren’t a mystery. They follow a predictable (and painful) pattern. The best way to avoid them? Make reordering effortless.

That’s what Arda does.

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