E-commerce companies should have a healthy fear of the “out of stock” icon. Today’s consumers do not take kindly to not getting what they want, when they want it. If this happens on your site with any regularity, you will continue to lose business to sites that have a handle on their inventory management, and more specifically, their reorder process.
According to Wikipedia, the following formula is the way to determine when you should reorder a specific product.
Re-order point = Average Lead Time*Average Demand + Service Level*√(Avg. Lead Time*Standard Deviation of Demand2 + Avg. Demand2*Standard Deviation of Lead Time2)
Seriously. Who has time for that? If you’re like most average business owners, you struggle to find the time to balance your personal checkbook. We can’t help you with that; but we can help you save time, money and missed sales. Stop worrying that you will not be able to fill an order due to a stock shortage. With topShelf’s Automated Reorder Points, you will never run out of fast moving products.