How to avoid product shortages: setting up automatic warehouse replenishment

To set up automatic calculation of product demand based on sales history and stock balances, the Torgsoft software uses a combination of core functionality and additional options. In particular, for this mechanism to work fully, you will need the paid options «Automatic Warehouse Stock Calculation» and «Minimum and Maximum Product Stock for Each Warehouse».

This process consists of several logical stages: analyzing sales history to calculate optimal stock levels, saving these limits in the database, and directly generating a supplier order automatically.

Step 1. Calculating minimum and maximum stock levels based on sales history

To let the software calculate how much stock should be kept in the warehouse, go to Warehouse — Warehouse Stock Calculation. This mode allows you to analyze past sales and set current limits to avoid both stock shortages and overstocking.

To configure the calculation:

1. Specify the sales period

Choose the time interval for which the software will analyze sales transactions, for example, sales for the previous month or the same season last year.

2. Specify the delivery period (in days)

This is the number of days after which a new delivery of goods from the supplier is usually made. The software will divide the total sales period into delivery cycles.

3. Set up the calculation formula

The software includes a built-in formula editor. By default, the formula for the minimum stock level is <Number of Sales> / <Number of Delivery Cycles>. You can change it by adding mathematical operators (+, -, *, /) and other variables from the table.

4. Calculate the maximum stock level

If you have a dynamic characteristic called «Maximum Product Stock», the «Maximum Stock Calculation» tab will become available in this mode. Here you can also set a formula, for example: <Number of Sales> + <Calculated Minimum Quantity>.

5. Taking additional factors into account

You can enable the «Do Not Include Sales with Product Discounts and Promotions» switch if such sales were atypical and should not affect regular stock levels. You can also set a hard minimum, for example, there must always be at least 2 units on display regardless of the calculation result.

6. Saving the limits

After clicking the «Update» button, the software will fill in the «Calculated Minimum Quantity» and «Calculated Maximum Quantity» columns. Select the required products and click the Save button. These values will be automatically written to the product cards as new order limits.

Step 2. Automatic generation of a supplier order

When the software «knows» the optimal minimum stock levels, you can automatically generate orders for the quantity of goods that is missing.

For this, use the Document — Create Supplier Order mode.

1. Product filtering

Open the generation window and use the filters. Select the status «Product Running Low» (this is a product whose current stock balance is less than or equal to the set minimum stock level) or «Product That Needs to Be Ordered» (these are products with zero or negative stock plus those that are running low).

2. Demand calculation

Pay attention to the «Need to Order» column. The software automatically calculates this value as the difference between the established minimum stock level and the actual stock balance in the warehouse. If you are placing an order for several stores at once, the software will sum up the needs of all selected retail locations.

3. Filling in the order

In the «My Order» column, you specify the final quantity to purchase. To avoid entering numbers manually, select the products using the CTRL+X combination for multi-row selection and choose the action from the menu: Actions — Set Quantity — My Order — Need to Order.

4. Supplier selection

In the «Method for Determining Supply Parameters» block, the software will suggest who is better to order the goods from. You can choose «Last Delivery» because the software will pull the supplier and price from the last purchase of this product, or «Supply with the Lowest Price» because the software will find the best price for the period you specify.

5. Creating documents

Click the «Generate» button in the upper-right corner. The software will automatically split the products and create separate order files in Excel or RTF for each supplier.

6. Control in Torgsoft

To track the order status inside the software itself, click the «Save Order» button. It will move to the «Document — Supplier Orders» menu, where you will be able to monitor delivery dates and automatically post the goods to stock with one click when they actually arrive at the warehouse.