When to reorder your products: calculating your reorder point
A stock-out loses sales, overstock ties up your money. The reorder point tells you exactly when to order again.
Know your sales speed
For each product, note how many you sell on average per day or week. A product that moves 10 units a day is not managed like one that moves 10 a month.
Count the delivery time
How many days pass between your order and the goods being on the shelf? If your supplier takes 3 days, you must order when you have at least 3 days of sales left.
The reorder point formula
Reorder point = average daily sales × delivery days + safety stock. For a product selling 10 a day with 3 days’ delivery and 10 units of safety stock, the point is 10 × 3 + 10 = 40: at 40 units, you order.
Safety stock covers busy days or a delivery delay; it is higher for essential products.
How much to order
- Aim to cover the period until the next delivery.
- Consider available space and expiry dates.
- Take bulk prices only for fast-selling products.
- Never order “just in case” a product that sits still.
Automate with Kaislo alerts
In Kaislo, set a threshold per item: as soon as stock drops below it, the item shows as low, and as out of stock when it reaches zero. You see at a glance what to order.
Sales, stock, customer credit and evening accounts in one place, on phone or computer. 30-day free trial.
When to reorder your products: calculating your reorder point
What is safety stock?
An extra reserve kept to absorb an exceptional sale or a delivery delay.
Should every product have the same threshold?
No: it depends on each product’s sales speed and delivery time.