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Automating purchasing in SKULabs: How to set up reorder rules
Automating purchasing in SKULabs: How to set up reorder rules

Guide to configure purchase order settings and reordering

Updated over a week ago

Place orders to your suppliers with ease using purchasing automation tools in SKULabs.

Reliably create purchase orders for hundreds of suppliers in just a few clicks using reorder rules to automate the quantity to order.

Our real-time calculations prevent under and over-ordering helping you keep your store in-stock and your float under control.

One-time setup

SKULabs comes with a default re-order rule that won't automate any purchasing for you.

If you want to opt-in to purchasing to keep products in stock and/or backorder, you will need to define your reordering strategy.

This is something you'll set up during your onboarding and from then on you'll rely on this default to automate your purchasing operations in SKULabs. It's always customizable, but it's important to capture your ideal ordering strategy in this onboarding step.

  1. Choose a reordering strategy below.

  2. Go to the purchase order settings page.

  3. Enter your chosen re-ordering rule e.g. (velocity * 30) - free - incoming

  4. Click save at the top right of the page.

For recommended re-ordering strategies see reordering strategies below.

Customize per supplier / per category

Your reordering strategy can be temporarily modified whenever you need during the purchasing process.

  1. Start a new PO.

  2. Select a supplier (optional)

  3. Click add items

  4. Filter by item tag (optional)

  5. Click "Filters"

  6. Next to the "Use suggested quantity" option, click "edit rule".

  7. Try any rule you might only want to run for this supplier / these items. e.g. alert - (free + incoming)

Advanced: Reorder variables

Adjust your accounts rule to suit your reordering strategy with the following variables or view our recommended reordering strategies below.

  • free: Net available stock (on_hand - reserved).

  • on_hand: Current physical stock.

  • reserved: Stock reserved for open orders.

  • incoming: Stock expected for receiving on open purchase orders.

  • alert: The desired threshold to replenish stock.

  • sold: Total quantity of an item sold based on "# days sold" filter selected on the PO Add items window.

  • velocity: This is sold / (days_on_sale || num_days_sold || 1)

  • num_days_sold: The number of days that contained sales in the reporting period. Great for products you always sell out of quickly to help forecast true demand if you were in stock full-time.

  • days_on_sale: This reflects the number of days from the first sale identified within the reporting period and is good for new products that launched within the reporting period which mostly remained in stock throughout the reporting period.

  • days_left: This is free / velocity but takes into account incoming POs due to arrive before you stock out.

  • contiguous_free: This is days_left * velocity. You can use this for a realistic view of the future inventory for this SKU without ever stocking out based on current velocity and incoming POs.

  • num_days: The number of days selected in "# days sold" filter on the PO Add items window.

Num days / num days sold / days on sale help

If today is January 30th, but I went in-stock on January 15th and had a sale on January 16th, a sale on January 20th, and a sale on January 30th, then with "30 days sold" selected in my filter dropdown:

num_days_sold = 3

days_on_sale = 15

num_days = 30

Note: The replenishment transfer order tool can only utilize a subset of these parameters but reach out to us in chat for help improving your replenishment orders.

Recommended strategies

Every company has different reordering strategies. Here are some common recommendations:

⭐⭐⭐ 30-day sales velocity less existing POs⭐⭐⭐

This is our best recommended reordering strategy.

This sets your target inventory level to 30 days of sales and accounts for currently available inventory and open purchase orders.

The lookback period over which we calculate your sales velocity is customizable during PO creation e.g. use the filter "# days sold" set to 30 if you only want to reference the last 30 days of sales data for your velocity.

This rule safely prevents over-ordering.

🖥️ Rule Code 🖥️

(velocity * 30) - free - incoming

Sixty days less incoming inventory that arrives before stock-out

We will soon support calculating your lead time and shipping time per SKU! Before then, this rule reorders 60 days of forecasted sales across all products minus the total inventory you have and the inventory expected by your calculated stock_out date. Make sure your "# days sold" filter matches when creating POs.

This rule can cause over-ordering but is a powerful tool to ignore POs due next year when you're calculating inventory for today.

🖥️ Rule Code 🖥️

(velocity * 60) - contiguous_free

Per-item minimum inventory target mode

Use your item's stock alert levels to set to a desired "minimum inventory target"

Your "minimum inventory target" should be the quantity of stock needed to meet the maximum sales demand over the maximum time it could take for stock to arrive from suppliers.

NOTE: Always account for safety stock, especially with a lean inventory strategy.

🖥️ Rule Code 🖥️

alert - (free + incoming)

Backorder-only mode

Reorder the stock needed to fulfill open orders for out-of-stock products only.

Safe against over-ordering.

🖥️ Rule Code 🖥️

0 - (free + incoming)

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