Inventory Ally Glossary

Common terms and their definitions

Updated over a week ago

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ADU: Average Daily Usage represents the amount of an item that is used on an average day.

Audit Log: A chronological record of actions and changes in a system.

Batch/Bulk Ordering Calculator: A tool for optimizing bulk purchases using your order history. By entering your payment terms, it provides the ideal order quantity, helping you balance cost savings and sales within a specified timeframe. Click here to access Inventory Ally's Bulk Ordering Calculator.

Cycle Count: A systematic method of counting inventory items at regular intervals to maintain accuracy.

Completing Cycle Count: Finishing the process of counting and verifying inventory items as part of a cycle count.

Compliance: A calculation that measures how well a practice’s orders match the program’s recommendation. Hospitals that maintain an 80-90% compliance rate realize the most consistent benefits.

Compliance Reports: Reporting found within Inventory Ally. This report compares your actual ordered inventory to the recommendations made by Inventory Ally. This report allows the ability to identify over-ordered, under-ordered, out-of-cycle and compliant purchases.

Creating Rooms and Inventory Locations (in Inventory Ally): Establishing designated spaces where your inventory is kept for easy cycle counts.

Creating Users: The process of adding new users to the Inventory Ally platform with specific access rights and roles.

Dead Stock: Inventory items that have not been sold or used for an extended period and are unlikely to be sold in the future, tying up capital and storage space.

Demand Forecasting: Inventory Ally's capability to predict future inventory needs based on historical sales data, seasonality, and other relevant factors.

Dynamic Maximum and Minimums (Par Levels): Setting variable inventory thresholds that automatically adjust based on usage and demand.

Economic Order Quantity (EOQ): A formula used to determine the optimal order quantity that minimizes total inventory costs, considering factors such as carrying costs and order costs.

Estimated Quantity On Hand: The projected quantity of an item currently in stock that is calculated based on past orders and consumption.

FAQs: Frequently Asked Questions, which provide answers to common queries.

FIFO (First-In, First-Out): A method of inventory valuation and management where the oldest items in stock are sold or used first, ensuring freshness and minimizing obsolescence.

Finalizing Order: The last step in the ordering process in Inventory Ally, confirming and completing an order for inventory replenishment.

Inbound Logistics: The management and coordination of all activities involved in receiving, storing, and distributing inventory as it enters the practice's facilities.

Integration: The process of connecting different systems, like VetCove, with the inventory management tool for a seamless flow of data.

Inventory Management: The process of overseeing, controlling, and optimizing the storage, movement, and organization of goods or products within a business or organization.

Inventory Performance Metrics: Key performance indicators (KPIs) that measure the efficiency and effectiveness of inventory management, such as turnover rate, fill rate, and carrying costs.

Inventory Valuation (Inventory-On-Hand): The process of determining the financial worth of the inventory on hand, which can be done using various methods like FIFO, LIFO, or average cost.

Lead Time: The amount of time it takes for an order to be delivered from the moment it is placed with a supplier, including processing, production, and transportation time.

LIFO (Last-In, First-Out): An inventory management method in which the most recently received items are the first to be sold or used, often used for tax purposes.

Max/Min Levels: The upper and lower inventory thresholds set for specific products in Inventory Ally. When inventory levels reach the minimum (Minimum), it triggers an order, and when they reach the maximum (Maximum), further orders are postponed.

Merging Inventory Items: Combining duplicate or similar inventory items to maintain accurate records and prevent redundancy. Learn more here.

Multi-location Management: A feature of Inventory Ally that enables users to monitor and control inventory across multiple locations, optimizing stock distribution.

Obsolete Inventory: Inventory items in Inventory Ally that are no longer usable or saleable and are identified for disposal, ensuring more efficient use of storage space and resources.

Order Frequency: The regularity with which orders for specific inventory items are counted and placed. Inventory Ally helps determine optimal order frequencies to maintain stock levels efficiently.

Order History: A record of past orders, including details of items purchased and dates of purchase.

Ordering Replenishment: The process of ordering new supplies to restock depleted inventory items.

Out-of-Cycle Low Stock Items: Items with low inventory levels that fall outside the regular cycle counting schedule.

Out-of-cycle orders: Orders placed without a corresponding recommendation from Inventory Ally and can cause continued excess spending without calculated guidance.

PIMS: Practice Information Management System.

Reorder Point: The minimum inventory level at which a new order should be placed to replenish stock before it runs out, preventing stockouts (i.e. Minimum).

Replenishment Recommendations: Inventory Ally's suggested actions for replenishing inventory, which take into account factors like order history and demand forecasting.

Rooms: In Inventory Ally, "rooms" refer to physical locations where inventory is stored or used, enabling organized tracking and management of stock across different areas within a practice.

Safety Stock: Extra inventory held as a buffer to account for unexpected demand fluctuations, supplier delays, or other uncertainties.

SKU (Stock Keeping Unit): A unique alphanumeric code assigned to each product to identify and manage items in a practice's inventory.

Stockout: The situation that occurs when a product is no longer available in inventory.

Supplier and/or Vendor Relationship Management: The practice of managing and maintaining relationships with suppliers and/or to ensure a steady and reliable supply of inventory items.

Supplier Scorecards: A method for rating and ranking suppliers based on various performance criteria, helping practices make informed decisions about their supply chain partners.

Supply Chain: A network of organizations, people, and resources that collaboratively manage the flow of products or services from suppliers to end customers.

Tenant: Inventory Ally will allow you to set up multiple hospitals under one "Tenant". This term is used in our system for groups of accounts that all share a common administrator user.

To Order Quantity: The amount of an item to order for replenishment.

Uploading Order History: The process of adding past order data to Inventory Ally for analysis and tracking.

Value of Inventory on Hand: Based on the counts entered, new orders placed, and the practice’s normal consumption patterns, Inventory Ally can estimate the value of inventory in your hospital and trend patterns each week.

Variance: Generally refers to a measure of how much individual elements in a set deviate from the average or expected value.

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