The reorder point is the stock threshold in which the item should be reordered. When the stock falls to this amount, you will be notified via email so you can send ShipBob your inventory in advance.
Find Your Reorder Point:
- From your store's software portal or sales figures, look at Product/SKU velocity or demand.
- Find your Avg. Units Per Sold Per Day figure.
- Factor in the manufacturer’s lead time in days for sending inventory to a fulfillment center.
- Factor in ShipBob receiving turnaround of 5 business days (7 calendar days).
- Build in safety stock number of recommended 14 or more days in case of a sudden demand spike.
- Add day totals from #3, 4, and #5 above.
- Multiply by demand per day per #2 above.
- This number is your re-order point!
Set Reorder Point Notifications:
From the ShipBob dashboard, click on Inventory and then click on Products.
Click on the relevant inventory ID#.
On the product details page, scroll down to Inventory Locations, click Edit Reorder Points and enter the reorder point for this item. Note: Reorder points are defined for each FC separately.
You will receive notifications to your main email address at ShipBob.
Important Note: Don't add reorder points directly to the product details basic information panel. This will not allow notification per FC and will not send email notifications.