What is Replenishment?
Replenishment in the OrderGrid app is a comprehensive module designed to ensure efficient inventory management. It helps users maintain optimal stock levels by generating purchase recommendations based on strategies and predefined parameters entered or imported into the system.
The OrderGrid app offers two primary replenishment strategies:
Min-Max: Suitable for items with no predictable demand. Recommendations are made to replenish stock when it reaches the minimum threshold.
Demand-Driven: For items with forecasted demand, uploaded through the Forecasts module, to predict future inventory needs.
How Replenishment Works?
Replenishment integrates data from various modules to create a cohesive and efficient inventory workflow. Here’s how the components work together:
Forecasts:
Supplies demand predictions for items using the Demand-Driven Strategy.
Ensures that recommendations align with forecasted needs by applying uploaded data.
Strategies:
Configures the logic behind replenishment:
Min-Max Strategy ensures stock levels are maintained within predefined thresholds. When stock falls below the threshold, a recommendation is generated. This recommendation can either be automatically converted into a Purchase Order or will remain in the recommendations until a staff member takes action and generates the PO.
Demand-Driven Strategy uses forecasted data to predict and meet future demand. It ensures that when stock is predicted to run low on a specific day, a replenishment recommendation is generated to restock before a stockout occurs.
Recommendations:
Consolidates data from forecasts and strategies to generate purchase orders with just two clicks or through full automation.
Allows users to adjust order quantities and seamlessly convert recommendations into purchase orders (POs)
Item Parameters:
Defines item-specific configurations such as lead times, cutoff times, and safety stock levels, directly influencing replenishment calculations. This ensures accurate recommendations for accounting when the system generates purchase orders.
Planning:
Offers a detailed dashboard of inventory metrics such as starting stock, forecasted demand, and expiring items.
Highlights items requiring replenishment based on configured strategies.
Replenishment Settings:
Customizes replenishment workflows, enabling:
Adjustments to include future demand (Days Forward).
Exclusion of today’s demand to avoid over-purchasing.
Automation of Purchase Order generation.
Together, these modules ensure that replenishment processes are automated, accurate, and aligned with operational requirements. This integration helps businesses maintain optimal inventory levels, reduce manual workload, and improve supply chain efficiency.