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Unit of measure

InventoryGlossary
Definition

A unit of measure (UoM) is the quantity in which an item is counted, bought, stored or sold, such as each, case or pallet. A warehouse defines one base unit per item and conversion factors between units, so three cases of 12 are always recorded as 36 of the base unit.

How units of measure and conversions work

Every item has a base unit, the smallest unit you track. For olive oil OIL-008, the base unit is one bottle (an "each"). The supplier packs 12 bottles to a case and 60 cases to a pallet, so one pallet is 720 each.

The system stores every quantity in the base unit and converts only at the edges. When you receive two pallets, it records 1,440 each. When a wholesale customer orders 5 cases, it reserves 60 each. When a picker scans a case barcode, the scanner tells the system that 12 units just moved. Keeping one base unit is what makes counts, balances and reports add up.

Buying, storing and selling in different units

Most items are handled in more than one unit, and each step of the flow may use a different one.

  • Purchasing: you order what the supplier sells, often cases or pallets, sometimes with a minimum order quantity.
  • Storage: reserve racks hold full pallets, while the pick face holds cases or loose units.
  • Selling: an online store sells single units, while a wholesale customer may only buy full cases.
  • Shipping: freight is quoted by pallet or by weight and volume, not by the base unit.

Common unit of measure mistakes

The classic error is a case received as an each, or the reverse. Receive 10 cases of 12 as 10 units and the system is short by 110 bottles; nobody notices until pickers find stock that "doesn't exist". The other direction creates phantom stock that gets sold and then short-picked.

Other frequent problems: the same barcode printed on the unit and the case, so a scan can't tell them apart; a supplier changing its pack from 12 to 10 without anyone updating the conversion; and spreadsheets that mix units in one column. Each of these shows up later as poor inventory accuracy.

How NextStock handles units of measure

NextStock keeps quantities in base units and defines a pack hierarchy per SKU (each, case, pallet), with a barcode for each pack so barcode scanning records the right quantity. Sales multiples let you sell an item only in cases of 12, with a named override when an exception is agreed. On the buying side, the supplier catalog records pack sizes and minimum order quantities, which purchasing and replenishment uses when proposing orders.

Part of the NextStock warehouse glossary. Browse the full glossary

Frequently asked questions

Short, direct answers to the questions warehouse teams ask most.

What is the base unit of measure?

The base unit is the smallest unit you track for an item, usually a single sellable piece. All stock balances are stored in it, and every larger unit is defined as a multiple of it. Pick the unit you would count if you opened every box, and only choose a larger one if you never split that pack.

What is the difference between an each, an inner and a case?

An each is a single unit. An inner is an intermediate pack inside a case, such as a shrink-wrapped pack of 6. A case (or outer) is the shipping carton, holding a fixed number of eaches or inners. Each level can have its own barcode, and the system needs the conversion factor for every level it handles.

Should a SKU sold as a single and as a case be two SKUs?

Usually not. If the case is just 12 of the same item, keep one SKU with a case pack, so stock is shared and counted once. Create a separate SKU only when the pack is a different physical product, such as a gift box with its own packaging, which is closer to a kit.

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