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Paul Crinigan
Paul Crinigan

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The Three Numbers That Fix Ecommerce Inventory

Most inventory problems are not a warehouse problem, they are a decision problem. You are guessing about when to reorder, and guessing is expensive in both directions: a stockout on your bestseller loses sales, while overstock ties up cash and racks up storage fees.

Three numbers turn that guess into a formula.

Reorder point

The stock level that triggers a new order, based on how fast an item sells and how long resupply takes. Hit the number, place the order, and you refill before you run dry.

Safety stock

A buffer sized to real lead-time and demand variability, so a slow shipment or a demand spike does not blank out your listing.

ABC analysis

Rank SKUs by revenue impact so you spend your attention on the vital few and automate the trivial many.

Layer in cycle counts, small and frequent inventory checks, and your numbers stay honest without shutting the store down for a full count.

For a product business, inventory is often 50 to 80 percent of total assets, so getting these three right is one of the highest-leverage moves you can make.

Full breakdown of the workflow, including software selection and multi-channel sync: https://www.afcommerce.com/inventory-management/

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