In this lesson of Thrive University, we'll go over how to use Thrive's reports to set reorder points & targets (previously PAR Levels and Reorder Quantities) to manage inventory with automated ordering.
Reporting Insights: Using Metrics to Set Reorder points & targets
Overview:
Manage inventory with automated ordering by setting up reorder points & targets
Reorder Point (min.) - the ideal minimum quantity you want in stock at all times
Reorder Target (max.) - how many units make for a “full” shelf of that product
Start with the Reorder Point Formula for a guide on how to set your reorder point
Average daily unit sales x Average delivery lead time + Safety stock
Get average daily sales from the Stock Forecast Report or from a Product Sales Report
4 considerations to make when setting reorder points & targets
1 - Analyzing sales reports and coming up with a daily average
2 - Knowing your goals and what to stock to meet them
3 - Knowing your vendors
4 - Knowing your storage capacity and how you will merchandise the product
Once reorder points & targets are set, you can use the ‘Auto-Add Products Below Reorder Point’ button for automated reordering