DUKAANMATIC BUSINESS GUIDES
When to reorder stock without tying up too much cash
A full shelf can feel reassuring until the supplier needs payment and the slow-moving products have barely sold. Reordering works better when it answers two separate questions: when should you place an order, and how much should you buy? Neither answer should depend only on how empty the shelf looks.
Start with demand you can explain
Review recent sales for the exact item and unit. Exclude unusual one-off orders when they would distort normal demand, but keep a note of the decision. An average across a festival week and an ordinary week may not describe either very well. For new products with little history, start with a smaller purchase and review more frequently instead of pretending the forecast is precise.
Include the supplier’s real lead time
Lead time is the time between placing an order and having usable goods available for sale. It may include order confirmation, delivery and receiving checks. If a supplier usually takes five days but sometimes takes eight, that variation matters. A cheap purchase price is less helpful if unpredictable delivery repeatedly leaves the business unable to serve customers.
Calculate a reorder point
Suppose an item sells about six units a day, delivery takes five days and you choose a twelve-unit safety buffer. Demand during lead time is 6 × 5 = 30 units, so the reorder point is 42 units. This is an illustration, not a universal setting. Seasonal demand, shelf life and supplier reliability may justify a different buffer. Review the assumptions when actual sales change.
Subtract incoming stock before ordering again
Suppose the target stock position is 90 units, there are 28 usable units on hand, 24 confirmed units on order and 10 units committed to customers. The stock position is 28 + 24 − 10 = 42. An order of 48 units would bring it to 90 before later movements. Forgetting the incoming 24 units would create an unnecessary extra purchase. Check minimum order quantities and pack sizes before finalising the order.
Use the ERP record and the shelf together
Review DukaanMatic sales and inventory records alongside physical condition, expiry where relevant, and confirmed supplier orders. Damaged or unsellable stock should not be counted as available simply because it is physically present. Give fast-moving and high-value items more attention than rarely sold products. After a few reorder cycles, compare expected sales and delivery times with what happened. Adjust the assumptions gradually; the aim is fewer stockouts and less idle inventory, not a formula that nobody revisits.