Demand forecasts, current stock, open purchase orders and supplier lead times are combined into a stock-out probability for each SKU and location, updated daily. Where the risk crosses your threshold, the system proposes a reorder quantity that reflects the service level you chose, and the lead-time variability of that particular supplier rather than a number typed into the ERP years ago.
A minimum set three years ago has survived a change in demand, in suppliers and in packaging. It still triggers, and it triggers at the wrong moment in both directions.
A supplier who averages fourteen days but sometimes takes thirty is planned as fourteen. Safety stock covers the average and the business runs out on exactly the exceptions that matter.
Cash sits in slow items in one warehouse while a fast one runs dry in another. Without a per-location view, both look like a single blended service level that hides them.
System stock versus counted stock, in transit, reserved, damaged, and per location. A forecast on top of an inventory nobody trusts produces confident nonsense.
Not the contract number — the observed spread from your own purchase orders, per supplier and per item class. Variability is what safety stock is actually paying for.
The demand forecast, its error, current stock and open orders combine into a probability of running out inside the lead time. That probability, not the raw forecast, is what triggers action.
A core product and a long-tail item do not deserve the same protection. Service level per class is a business decision, and it directly determines how much cash sits in stock.
Reorder proposals land in your ERP with quantity, timing, the reason and the risk it avoids. Buyers approve or adjust, and adjustments are tracked so the rules improve.
We build in your stack rather than moving you onto ours. The list below is what this solution most often connects to — other systems are a scoping question, not a blocker.
Demand forecasting predicts how much will sell; this converts that, plus stock, open orders and lead time, into the probability of running out and what to reorder. They are usually built together.
We use cookies for analytics — to see which pages bring enquiries. Nothing else, and nothing before you agree. Cookie Policy