In this lesson of Thrive University, we'll go over how to use Thrive's reports to set PAR levels and Reorder quantities to manage inventory with automated ordering.
Reporting Insights: Using Metrics to Set PAR & Reorder Quantities
Overview:
Manage inventory with automated ordering by setting up PAR levels and Reorder quantities
PAR - the ideal minimum quantity you want in stock at all times
Reorder quantity - how many units make for a “full” shelf of that product
Start with the Reorder Point Formula for a guide on how to set PAR
Average daily unit sales x Average delivery lead time + Safety stock
Get average daily sales from the Stock Forecast Report or from a Product Sales Report
4 considerations to make when setting PAR levels and Reorder quantities
1 - Analyzing sales reports and coming up with a daily average
2 - Knowing your goals and what to stock to meet them
3 - Knowing your vendors
4 - Knowing your storage capacity and how you will merchandise the product
Once PAR levels and Reorder quantities are set, you can use the ‘Auto-Add PAR Products’ button for automated reordering