Smart Reordering

Prerequisites


Table of Contents


The Smart Reordering feature in DEAR allows forecasting of future product sales and generating email alerts to reorder products from merchants. You can track inventory levels for each of your locations and configure the Inventory Velocity Report to run at scheduled intervals so that you can be kept informed when there is a need to reorder a product.


The Lead and Safety values as well as the Reorder quantity for a product from each of your suppliers, the Inventory Velocity Report that is set up via either the Inventory Velocity Report page or via the DEAR Reporting Module, and the Reorder Suggestion page all play important roles in the Smart Reordering feature. When DEAR detects that there is a need to reorder products from your suppliers, the Reorder Suggestion email which the system will send to the specified mailing lists will show this. You can then click the link to the Reorder Suggestion page in the email, from where you can select the supplier (in case there is more than one supplier in DEAR) or specify a warehouse from which to order the product.


NOTE: For a location to appear in the Reorder Suggestion page, the location's Allow to Reorder Stock Level option must be checked in Reference Books > Locations & Bins.


Setting Lead, Safety, and Reorder Quantity

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  • Lead refers to the number of days expected for the product to be delivered from the time a PO is opened and submitted to the supplier.
  • Safety refers to the minimum number of days of inventory (safety stock) of a product.
  • The Reorder Quantity refers to the number of items to be reordered.


Lead, safety, and reorder quantity are set up per supplier on the Products page. By default, for suppliers with multiple locations, the different locations will inherit the values of the lead, safety, and reorder quantity of the supplier. However, these values can be changed per location, if needed.


To illustrate, for a supplier with Locations A and B and whose lead, safety and reorder quantity are set up at 5, 5, and 10, respectively, both location A and location B will have their lead days, safety days, and reorder quantity configured at 5, 5, and 10 as well. However, the values for the lead, safety and reorder quantity for either location A and B can be changed to any number, say 3, 3, and 10 for location A, and 4, 4, and 5 for location B, if desired.


You can also choose to set up the values for lead, safety, and reorder quantity by location instead. In this case, just leave the lead, safety, and reorder quantity of the supplier blank and enter your preferred values for lead, safety, and reorder quantity per location.


To set up the lead, safety, and reorder quantity for a product:

  1. Go to Inventory > Products, click or search for the product you want to set up with lead and safety values, then click the product to go to its Details page.
  2. Scroll down to the bottom of the Product Details page, and click the Suppliers tab.
  3. On the Suppliers section, on the grid at the bottom, you can find the Lead, Safety, and Reorder Quantity columns. Click the appropriate columns to enter your preferred Lead and Safety days, and the reorder quantity. If the supplier has multiple locations and you want to set different Lead and Safety days and reorder quantity for a location or all locations, proceed to Step 4. If the supplier does not have multiple locations, skip to Step 5.
  4. Each of the supplier's locations will show the Lead, Safety, and Reorder Quantity you entered in Step 3. You may change these to your preferred values, as shown below.
  5. Click Save.

IMPORTANT! The Inventory Velocity Report may reflect incorrect data if you leave the Lead and Safety days as well as the Reorder Quantity for a supplier blank. To ensure that the report reflects complete and correct data, you may need to provide values for Lead, Safety, and Reorder Quantity per supplier or supplier location.


The Inventory Velocity Report

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The Inventory Velocity Report is a scheduled report type that can be manually set up for scheduling from either the Report Scheduling module or run manually from the Inventory Velocity Report page.


The Inventory Velocity Report shows information about each SKU, including its sales velocity, the quantity of available items in stock, the forecast sale period for each item, and an option if the item needs to be reordered once again.


Every time the report is generated, the data for the previously generated one are written over. Only users with active Reporting permissions can generate the report.


If you have an active Report Scheduling module, the Inventory Velocity Report can be scheduled to run using the module.


If you do not have an active Report Scheduling module, the Inventory Velocity Report can be generated manually by clicking the Upload Report button on the Inventory Velocity Report page.


The different columns of the Inventory Velocity Report are detailed in the table below.


COLUMN NAMEDESCRIPTION
Location    Name of location
Product NameName of the product
Product SKUSKU number of the product
ActiveIndicates if product is active
On B2B portalIf product is listed in B2B portal = True
If product is not listed in B2B portal = False
On Sales ChannelsIf product is listed in Sales Channels = True
If product is not listed in Sales Channels = False
ComponentIf item is a component in BOM = True
If product is not a component in BOM = False
Finished GoodIf there is a BOM for product = True
If there is no BOM for product = False
On HandQuantity of units on hand
AvailableNumber of available units.
If the number of available units + awaiting units < 0 and reorder quantity is specified for a product, then recommended action for product = reorder, even if velocity=0.
Last SaleDate of last sale
Date AddedDate of 1st movement in DEAR
Days Since AddedNumber of days since the product was added in DEAR
Units SoldThe number of products sold in the last 7/14/30/60/90 days
Shipped Per DayProducts shipped per day
VelocityUnits sold per day based on movement from the last 7/14/30/60/90 days.
Computed as {Quantity of items sold for the reporting time}/{reporting time}.
Quantity of items sold for the reporting time is sum of sold items in Sale, Assembly, Disassembly, and Write-off tasks.
Even if velocity = 0, if the number of available units + awaiting units < 0 and reorder quantity is specified for a product, DEAR will recommend reordering the product.
Days to ZeroExpected number of days until inventory of the product becomes zero. Computed as {available units} / {inventory velocity}.
Available units is taken from Available column.
On OrderExpected number of days open POs will add to supply.
Computed as {awaiting units} / {sales velocity}.
Awaiting units refer to the quantity of items not yet received from all authorised POs.
Lead    Expected number of days between opening and submitting the PO to the supplier and receiving the stock.
SafetyPreferred minimum number of days of inventory (safety stock).
Recommended ActionRecommended action on product.
If the number of available units + awaiting units < 0 and reorder quantity is specified for a product, then recommended action for product = reorder.
If reorder date has come for an item, link to Reorder Suggestion page is displayed. Otherwise, the column indicates that there is enough inventory of the item.
SupplierName of the supplier

NOTE: The Inventory Velocity Report is not available for DEAR business accounts that have been cancelled or are in arrears. In these cases, the Inventory Velocity Report page will show the last generated report, if any.


To Run the Report via the Inventory Velocity Report Page

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To run the Inventory Velocity Report via its own report page:

  1. Go to Reports > Sales Reports, then click Inventory Velocity Report. 
  2. On the Header section of the Inventory Velocity Report page, the report interval is set to 7 days by default. You may change this to 14, 30, 60, or 90 days, depending on your requirements.
  3. On the Layout section of the Inventory Velocity Report page, select the report layout. It is recommended that you leave the default selection as-is, though you may also create your own report layout.
  4. The Recommended Action column is filled after the report is calculated. If the product's reorder date is due, or the number of available units + awaiting units < 0 and reorder quantity is specified for a product, this is set to Reorder Product, even if Velocity=0. You can then click the link to go to the Reorder Suggestion page (see Reordering from the Reorder Suggestion Page). If the product's reorder date is not due yet, the column displays Inventory is OK. 
  5. Click the Mailing List button, select either All locations or a specific location, select the mailing lists for the Reorder Suggestion email, then click Save to save the mailing lists.
  6. Click the Upload Report button at the top to run and display the report on the page. This also sends the Reorder Suggestion email to the mailing lists that you set up in Step 5.

NOTE: You must set up your mailing lists before you can specify the recipients for the Reorder Suggestion email.


To Run the Report via the Scheduling Module

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If you have an active Report Scheduling module, you can run the Inventory Velocity Report from the module.

  1. Go to Reports > Sales Reports, then click Inventory Velocity Report. 
  2. On the header section of the Inventory Velocity Report page, click the Scheduling icon.  
  3. Enter, then select the report name from the list, then click Next.
  4. On the next page, choose the layout for the report, select the desired report interval (7, 14, 30, 60, and 90 days) from the list, then click Next.
  5. Select a start date, frequency, mailing list, and report format from the lists.
  6. Click Save. The report will then be run depending on the start date you specified in Step 5.

NOTE:  You must set up your mailing lists before you can specify the recipients for the Reorder Suggestion email.


To Rerun the Report based on Real-Time Data

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After generating the Inventory Velocity Report, you can rerun the report from the Inventory Velocity Report page at any time by clicking the Upload Report button.


To Export the Report to Another Format

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Just like any other DEAR report, the Inventory Velocity Report can be exported as a Microsoft Excel file with or without totals, as a PDF file, or a Rich Text Format file.


To export the report, click the Export button, then select the appropriate format from the list.


The Reorder Suggestion Email

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The Reorder Suggestion email is sent to the designated mailing lists every time the Inventory Velocity Report is generated.

If there are items that need to be reordered, the email will contain a link to the Reorder Suggestion page. It will also give the number of items that need to be reordered, but not the details. The link will be active for 24 hours.

If there are no items that need to be reordered, the email will not contain a link to the Reorder Suggestion page.


Reordering from the Reorder Suggestion Page

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The Reorder Suggestion page lists all products that need to be reordered, allowing you to create a PO or stock transfer for these products in DEAR.

This page is similar to any regular reorder page in DEAR, except that it can be accessed by the link from the Reorder Suggestion email that is sent to your designated mailing lists every time the Inventory Velocity Report is generated.


To reorder from the Reorder Suggestion page:

  1. From the Locations list, select either All locations or a specific supplier location from which the items will be reordered.
  2. The Reorder from field is toggled to Supplier, by default. You may leave this as-is if you are ordering from a supplier, or you can toggle this to Warehouse, if you want to reorder from a warehouse instead of the supplier.
  3. Select the supplier or the warehouse from which you want to reorder.
  4. Select either PO or Stock Transfer from the list, then check the Supplier SKU boxes that will be reordered. You can also set an option to
    create new stock transfer or purchase in DEAR for reordering.
  5. Edit the reorder quantities for the selected SKUs in Step 4, if desired.
  6. Click Reorder. A summary of the reordered products is then displayed at the bottom.

NOTE: Other products from the specified supplier location in Step 2 that are within 7 days of their reorder date will also be listed on the Reorder Suggestion page.


Things to Know about Smart Reordering

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  • When computing for the Product Reorder Quantity, DEAR considers the following:
    • The Reorder Quantity value under the Suppliers tab on a product's Details page.  
    • If Reorder Quantity is not specified for the Supplier+Location combination under the Suppliers tab, the system gets the Reorder Quantity for a specified location from the Reorder Levels tab instead.
    • If Reorder Quantity is not specified for the location under the Reorder Levels tab, the system gets the Reorder Quantity from the product's Details page.
  • When computing for the Minimum before Reorder Quantity, DEAR considers the following: 
    • The Minimum Before Reorder quantity under the Reorder Levels tab on a product's Details page.
    • If Minimum before Reorder quantity is not specified for the product, the system gets the Minimum before Reorder quantity from the product's Details page.
    • The Minimum before Reorder quantity that is set up under General Settings > Purchase Process Customisation is not considered in the computation.
  • The Minimum Before Reorder quantity on a product's Details page and the Minimum To Order quantity under the Suppliers tab are different from each other.
    • Minimum Before Reorder is part of the final Reorder Quantity formula, i.e. Reorder Quantity = Product Reorder Quantity + Minimum Before Reorder - Available - On Order.
    • Minimum To Order prevents you from ordering anything less than the stated quantity from a particular Supplier.
  • If the number of available units + awaiting units < 0 and reorder quantity is specified for a product, then recommended action = reorder, even if product velocity = 0.

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