Dictionary

Visible supply

“The quantity of a commodity known to be stored or available for delivery, based on reported stocks at recognised locations.”

Why visible supply matters to a first-time founder

Reported stocks help commodity buyers and sellers judge near-term availability and possible price pressure. A low figure can signal tightness, while a high figure can suggest ample supply. The measure is incomplete, however, because private, unreported, in-transit, or inaccessible stocks may exist outside the published total.

Examples of visible supply

An exchange reports 40,000 tonnes of deliverable copper in approved warehouses, down from 70,000 tonnes a month earlier. A manufacturer treats the fall as one warning of tighter availability but also checks mine output, shipments, private inventories, and demand before changing its purchasing plan.

Common misunderstanding

It does not mean every unit that exists worldwide or every item consumers can see on shop shelves. The term is mainly used for commodities and depends on the reporting system’s locations and eligibility rules. Visible supply can fall even when unreported stocks elsewhere are rising.

When to use it

Use it when sourcing commodities, managing inventory exposure, or interpreting market reports. Check who publishes the number, which warehouses and grades count, how recent it is, and whether the stock is actually deliverable to you. For most software or service startups, ordinary inventory and supplier lead times are more useful measures.