Running out of a fast seller loses a sale today and sometimes the customer. Overstocking ties up cash and spoils. A reorder point balances the two.
The formula
Reorder point = average daily sales x the days your supplier takes to deliver + a safety buffer. If you sell 12 cartons of water a day, your supplier needs 2 days, and you want a one-day buffer, reorder when you reach 36 cartons.
Where to start
- Begin with your top 30 products. They typically make up most of your sales.
- Write the reorder point on a card on the shelf, or record it in your system.
- Review monthly. Seasons, Ramadan and holidays change how much you sell.
Watch slow movers
Products that sit for months are cash on the shelf. Mark them down, bundle them with fast sellers or stop reordering.
Let the system warn you
With barcode scanning, every sale reduces stock automatically. TU2 Market (IQD 35,000 a month) tracks quantity on hand and flags low-stock items before you run out, plus full profit and margin analytics for your whole catalogue.