Open-to-buy (OTB)
A budgeting method that controls how much new inventory you can purchase in a period, given planned sales and stock targets.
Open-to-buy (OTB) is the merchandising discipline of planning inventory spend: for a given period, how much can you commit to buying without blowing past your sales plan and target stock levels? It keeps cash from getting locked in overstock.
Skuwell's purchasing supports budgets and open-to-buy controls, so replenishment recommendations are bounded by what you've actually planned to spend -- buying stays aligned to the financial plan, not just demand signals.
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The smallest quantity a supplier will accept on an order, often forcing you to buy more than pure demand suggests.
Read definition → Inventory turnoverHow many times you sell through and replace average inventory in a period -- a core efficiency metric.
Read definition → Dead stockInventory that isn't selling and is unlikely to, tying up cash and warehouse space.
Read definition →See it working on a live system.
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