What is smart replenishment?
Automatically calculating when and how much to reorder based on real-time stock, sales trends and purchasing lead times, with early warnings.
In detail
Traditional replenishment relies on people checking stock periodically and deciding quantities from experience. Smart replenishment has the system calculate continuously: at the current sales rate, how many days the stock will last and, given how long delivery takes, when an order must be placed and how much to order.
For example
The system calculates that, at recent sales rates, a product will fall below safety stock in 12 days, while the supplier's lead time is 10 days, so it prompts purchasing to order 500 units today.
How companies use it
First make sure stock data is accurate and purchasing lead times are recorded, then set replenishment rules and regularly check that the suggestions make sense.
Common misconceptions
Relying entirely on system suggestions. Promotions, new product launches and market shifts call for manual adjustment.
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