Stockout Root Cause Report Template
A stockout is rarely one failure. It is usually a chain: a parameter that was off, a supplier that slipped, a record that was wrong. This template guides a short, honest investigation that ends with actions and owners.
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Stockout Root Cause Report Template
Stockout Root Cause Report
Company: Acme Precision Ltd Report no: SO-2026-031 Date: 2026-10-20 Prepared by: A. Planner
Summary
| Part | Stock reached zero | Duration | Primary cause |
|---|---|---|---|
| PCB-7710 | 2026-10-12 | 5 working days | Supplier late delivery |
Impact
Assembly line 2 stopped for two shifts. Two customer orders shipped three days late.
Root cause analysis
Supplier shipped 18 days after the confirmed date. The lead time in the item master was 42 days while the last three receipts averaged 49 days. The reorder point was therefore too low.
Corrective and preventive actions
| Action | Owner | Due date | Status |
|---|---|---|---|
| Update planned lead time to 50 days. Raise safety stock after recalculation. Add supplier delivery review to monthly meeting. | Open | ||
Review and approval
Keep the analysis factual and blame-free. This is a starting template; adapt the cause categories to your own planning policy.
Evidence-first stockout analysis
Optional: a short review of drawing stockout evidence from ERP transactions and receipts.
Optional. The tool and every export work without this. No spam.
How to fill it in
Complete it within a week of the stockout while the facts are fresh. Record when stock reached zero and for how long, then describe the real impact in terms the plant manager cares about: lines stopped, orders late, expedite cost. Choose the primary cause category and use the five whys field to walk back from the symptom to the parameter, process or behaviour that allowed it.
Cause categories explained
Each category points to a different fix. Forecast error leads to review of demand planning inputs. Supplier lateness leads to lead time and supplier management. Planning parameters wrong means reorder point, safety stock, lot size or lead time in the item master. Record inaccuracy means cycle counting and transaction discipline. Quality rejection means incoming inspection and supplier quality.
- Pick one primary cause, list others in the narrative
- Check item master parameters before blaming the supplier
- Verify on-hand accuracy for the part and its bin
Closing the loop
The report is only useful if actions are tracked. Add each action with an owner and a due date, review them in the monthly inventory meeting, and close the report when the changes are in the ERP. Over a quarter, count reports by cause category. If most are planning parameters, a parameter review will prevent more stockouts than expediting ever will.
Common mistakes
Stopping at the supplier as the root cause, writing actions with no owner, and skipping the on-hand check are the common ones. Another is writing the report only for big events; a handful of small ones often reveal the same parameter problem.
Frequently Asked Questions
When should I write a stockout report?
Whenever stock reaches zero and it affects production or a customer order, or when a part you classed as critical runs out. Many plants set a threshold on days of impact or value at risk.
Is five whys enough?
For most planning stockouts, yes. For repeated or complex events use a fuller method such as a fishbone diagram or 8D. The template can be attached to either.
How is this different from a shortage log?
A shortage log tracks what is short today. This report analyses why a past stockout happened and what will prevent it, so the two work together.
Who should review it?
The planner, the buyer, and a plant or operations manager. Include quality if the cause was a rejection, and finance if expedite or write-off costs were significant.
We can help surface likely stockout causes from your ERP history automatically, so the report starts with evidence. Ask for a short review.
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