Quick Tips: Setting Part Reorder Levels

Here is a few quick tips for you out there that wish to set up Part Reorder Levels. 

Reorder levels with Fishbowl

In this post we will go over the differences between Reorder Levels and Reorder Points, and how to create your Reorder Levels 3 Different Ways. As always if you have any questions related to Fishbowl don’t hesitate to call the office on 1300 785 755 in Australia and 0800 785 755 in New Zealand and one of our helpful support team members will be able to give you a hand.

Reorder Levels vs. Reorder Points

Reorder points are certain quantities of inventory that, when reached, trigger the process of purchasing more stock to reach a certain level. So when the total number of parts in stock gets down to the reorder point, you’ll know it’s time to reorder more of the parts.

Let’s make sure we’re all clear about the difference between Reorder Levels and Reorder Points.

Reorder Levels are made up of two things:

  1. Reorder Point: The minimum number of items in stock that marks the point at which they must be reordered to avoid running out.
  2. Order Up to Level: The maximum or preferred number of items that can be contained in stock. The reorder quantity shouldn’t be higher than this number.

You can run a Reorder Report from the Report module to produce a list of all the items in your inventory that have reached their reorder point. It will also show you how many to reorder to return to the proper level.

You can use reorder levels to automatically generate purchase orders for the necessary number of parts to get them back to the desired quantity through the Auto PO wizard. If you’re a manufacturer, you can also use reorder points to automatically generate manufacture orders for the desired quantity using the Auto MO wizard.

3 Ways to Create Reorder Levels

Here are the three methods by which you can create reorder levels:

1. Use a Reorder Levels CSV Import to create multiple reorder levels.

2. Use the Auto ROP wizard to automatically set multiple reorder levels at the same time.

3. Click the Inventory tab in the Part module to create and edit single items’ reorder levels.

Let’s delve into these three methods a bit more closely to give you an idea of how to do them and where to find them in the interface:

1. CSV Import

Click the File button at the top of the interface and then select the Import option. This will pull up a friendly Import wizard to guide you through the process of importing data on reorder levels via Excel spreadsheets. It tells you how to format the data and other essential things to follow

2. Auto ROP Wizard

The Auto ROP wizard is located in the toolbar on top of the interface. Simply click on it and it will bring up a new window to help you specify the right parts you’re looking for and calculate their reorder levels, based on a number of factors. I could spend an entire blog post explaining all of this, but to keep it brief I’ll just have to cut it short here and direct you to the Fishbowl Wiki for detailed instructions on using the Auto ROP wizard.

3. Inventory Tab

There are several tabs located at the top of the Part module, including General, Details, Accounts, and Inventory. Click the Inventory tab and you’ll be able to see detailed information about a particular part, including the number on hand, on order, allocated, committed, backordered, and so forth. You’ll also find a helpful section at the bottom with information about the item’s location, order up to level, and reorder point. You can adjust this information right there.

Look out for this Quick Tips Every Thursday where we delve into commonly asked questions and helpful hints to make sure you are getting the most out of Fishbowl inventory and manufacturing software.

Did You Know? Fishbowl’s free Reorder Point Calculator.

Fishbowl offers a reorder point calculator that anyone can access, free of charge. Isn’t that nice?

Did You know? Fishbowls free reorder point calculator

Why a Reorder Point Calculate?

It goes without saying that reordering is important in the order management process. Companies need to plan ahead and maintain equilibrium on products going out and coming into their warehouses. That’s where a reorder point calculator comes in handy. This functionality is also built in the software, but can be set to automatic using your inventory data to maintain high efficiency with your stock.

Fishbowl’s reorder point calculator helps companies in several ways:

  • Knowing when they’re getting low on a certain item
  • Avoiding unnecessary shortages
  • Cutting down on carrying costs by not over-ordering
  • Remove the need to overstock “just in case”

The Reorder Point Equation

The calculator uses the following equation to come up with a reorder point:

Reorder Point = (Lead Time + Safety Stock + Basic Stock) x Unit Sales Per Day

Want to know exactly what lead time, safety stock, and basic stock are? Click here and go to the Reorder Point Calculator page right now to get detailed descriptions of them. “Unit sales per day” is pretty self-explanatory, though.

You can use Fishbowl reorder point calculator as many times as you like for as many products as you like. This calculator is just one of the numerous manufacturing and warehouse management features you’ll find in the full Fishbowl software. Get a free trial of Fishbowl to see these features in action!

Inventory Management Software Tricks and Treats

inventory_tricksThis Halloween avoid ghoulish inventory and manufacturing process pratfalls by following a few tips from our Inventory Specialists here at Fishbowl Australia. Hopefully this list will make it easier to manage your stock and warehouse more efficiently.

The first tip is to ensure that all stock that arrives to your warehouse is placed into your system in a timely matter, trying not leave stock on your warehouse floor for too long. This will avoid any unnecessary re-ordering of stock and will make sure that when a customer wants an item you will have it on the shelf.

Another great tip is if you find that the warehouse is placing the wrong products in the system, it might be time to invest in a barcode scanner. This will improve accuracy in the stock placed on the shelves, as well as being able to track items and will make it easier when stocktake time rolls around.

For a full range on tips, tricks and how to get the most out of your inventory visit the wiki here. If you have any other questions or want to see Fishbowl Inventory in action, do not hesitate to call the office on 1300 785 755 and speak with one of our inventory specialists or visit our full site at http://www.fishbowlinventory.com.au.