ઇન્ડેન્ટ Meaning

An indent is a requisition raised to a supplier requesting stock. In FMCG it usually means the distributor's periodic stock request to the company or super stockist, as opposed to the retailer's order placed with the distributor.

An indent is the request for supply; a purchase order is the formal commitment that follows it. In many operations the indent is converted into a PO once quantities and prices are confirmed.

Typically weekly or twice weekly in FMCG, and daily in dairy and other fresh categories where shelf life leaves no room to hold cover.

Actual secondary sales and current days of cover per SKU, rather than last month's purchase quantity. Indenting from purchase history repeats existing errors and cannot distinguish a fast SKU that stocked out from a slow one that never moved.

Because stock is bought to hit a discount slab rather than to meet demand. The godown fills with product that ages toward expiry, working capital is tied in slow inventory, and the following period's orders fall because the channel is already loaded.