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Peak Atlas

Problem · Constantly out of stock

The demand is there. The goods aren't.

A sold-out bestseller costs twice: today's revenue and the customers who buy elsewhere. Usually it wasn't ordered too little, but too late.

Calculate reorder pointUnderstand the causes

Reorder point

When to reorder? Not only at zero.

Take an item that sold out recently. You can overwrite the sample numbers.

Average of the last few weeks, for one item.

pcs.

From order to putaway.

Days

For delays and demand spikes.

Days
pcs.

Reorder point

228 Units

Order in 2.7 days; the stock still lasts 21.7 days.

Reorder point = daily sales × (lead time + buffer)

Assumptions and limits

  • The calculation assumes even demand. You have to plan seasonal peaks and promotions separately.
  • Minimum order quantities and open orders with the supplier are not taken into account.
  • Applies to one item. With many items, run the calculation for your bestsellers first.

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How you'll notice

Sold is good. Not sold out.

  • Your best item is regularly out of stock, often right after a campaign.
  • Reorders happen when someone in the warehouse notices the shelf is empty.
  • At the same time, other stock has sat unsold for months.

Understand the causes

Why goods is always missing at the wrong moment.

  1. 01

    No reorder point

    How you'll notice
    Orders are placed by gut feeling or when the shelf is empty.
    Why it happens
    There is no number that triggers a reorder.
    What helps
    Calculate a reorder point for your most important items and check it regularly.
    Limit
    The reorder point has to be adjusted when demand or lead time changes.
  2. 02

    Lead time underestimated

    How you'll notice
    The reorder comes, but only after the sellout.
    Why it happens
    The calculation uses the promised delivery time, not the actual one.
    What helps
    Measure the actual delivery time of the last orders and calculate with it.
    Limit
    With unreliable suppliers, only more buffer or a second supplier helps.
  3. 03

    Demand spikes are not planned for

    How you'll notice
    Selling out comes shortly after promotions or in season.
    Why it happens
    Marketing plans the promotion, and purchasing finds out too late.
    What helps
    Align promotions and seasonality with purchasing before ordering.
    Limit
    How strongly an action works can only be estimated; plan conservatively.
  4. 04

    Money is tied up in the wrong stock

    How you'll notice
    There's no budget for the bestseller, while slow sellers sit in the warehouse.
    Why it happens
    Purchasing spreads money evenly instead of by sell-through.
    What helps
    Direct budget to fast-moving items first.
    Limit
    Tied-up capital is a topic of its own; see Capital in stock.

Ways to solve it

Reorder in time. Without a big system.

Ways to fix products that keep selling out, compared
WayEnough ifLimit
Reorder point per bestseller in a spreadsheetYou have few items and check stock weekly.You have to transfer stock and sales by hand.
Minimum stock alert in the shop systemYour shop offers them and you only sell through this channel.Usually knows nothing about lead times or open orders.
Inventory or warehouse managementMany items, several warehouses or channels.Setup and upkeep are time-consuming; often too much for small ranges.
Peak OneYou want to see stock, reorder needs, lead times, and goods receipt in one place.Needs your shop connected; ordering continues with the supplier.

Peak One in action

Before the sellout act.

  1. TriggerWhich products are running out soon?
  2. 01 · ProductSignalStockouts shows which products are sold out or about to sell out.
  3. 02 · SupplierUnderstandingSupplier Lead Time shows how long your suppliers really take, and Incoming Inventory shows which goods arrive when.
  4. 03 · ReorderDecisionReplenishment shows what needs reordering now, Safety Stock how much buffer you need.
  5. 04 · OrderActionThe reorder becomes a task in Peak Board; Purchase Orders then shows where it stands with the supplier.
Result: Reordering follows numbers and lead time, not an empty shelf.

The apps for it

Inventory and replenishment in Peak One.

Three steps

Prevent the next sellout.

  1. 01 / 03

    Pick ten bestsellers

    Take the items with the most revenue. A stockout costs the most there.

  2. 02 / 03

    Calculate reorder point

    For each one, calculate with the calculator above and write the number where you check your stock.

  3. 03 / 03

    Check weekly

    Once a week, check which items are below the reorder point and reorder them.

Frequently asked questions

Briefly answered.

How do I calculate the reorder point?

Sales per day times lead time plus buffer, in days. When stock falls to this number, you reorder. The calculator above also shows how many days your current stock lasts.

How much safety stock do I need?

As much as supplier delays and demand swings tend to add up to. The less reliable the supplier, the more. Too much buffer does tie up money, though.

Does Peak One reorder automatically?

No. Peak One shows which products will soon run out and what needs reordering. You place the order with the supplier yourself.

Keep exploring

What's included.

Welt Value

✦ A Peak principle

Cash is time. Whoever sees them decides more calmly.

Overview first, then action

More problems

Typical bottlenecks in growing companies, each with a tool you can try right away, the causes, and the path Peak One provides for it.

Alle Probleme

Solve it once. The rest follows.

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