Velocity, Forecasting & Replenishment is a set of metrics and reports that identify how quickly your products sell. ShippingEasy tracks the rate you sell products. With that information, ShippingEasy recommends when and what quantity to restock each product. You save money by maintaining lean inventory without stock outs!
You can use Velocity, Forecasting & Replenishment with its default values. To get results that work best for your business you can configure Velocity, Forecasting & Replenishment.
To set up Velocity, Forecasting & Replenishment
Review these attributes:
- Safety Stock
- Lead Time
- Default Sales History
- Default Forecast Period
- In-stock Expectation %
All five attributes can be updated on the INVENTORY SETTINGS page.
- From above the navigation bar, click the SETTINGS tab.
- Under ACCOUNT SETTINGS, click on INVENTORY SETTINGS.
Set Safety Stock and Lead Time
Both Safety Stock and Lead Time can be updated in the Inventory Settings section.
- Safety Stock is the amount of stock you always want to have on hand. Entering a Safety Stock value on this page applies to all of your products. Learn how to apply Safety Stock to individual products. There are two reasons to apply a Safety Stock - if neither applies to your business, you can leave Safety Stock blank:
- For all inventory updates to your stores, ShippingEasy will deduct this value from your Available stock ensuring you always have stock on hand in case of an oversell. Learn more.
- For Velocity, Forecasting & Replenishment, when ShippingEasy calculates the DTR ("Days to Reorder") your Safety Stock value is converted to days (safety stock/velocity) to ensure this buffer is accounted for when determining when to restock. We also account for your Safety Stock when calculating QTB ("Quantity to Buy") so you always have that amount on hand.
- Lead Time is the number of days between when a purchase order is placed and the replenishment order is received. Entering a Lead Time value on this page applies to all of your products. Learn how to apply Lead Time to individual products.
- Lead Time is important because it enables ShippingEasy to project sales for the entire reorder period (lead time + forecast period). This allows you to replenish enough stock to cover the lead time as well as the forecast period.
- Save the change.
Set Default Sales History, Default Forecast Period and In-stock Expectation %
Default Sales History, Default Forecast Period and In-stock Expectation % can be updated in the Forecasting Settings section of the INVENTORY SETTINGS page.
These values are reflected in Velocity, Forecasting & Replenishment metrics in the Product Catalog, Product Details and when Creating a Purchase Order.
- Default Sales History is the historical time period used to determine the number of sales. By default, Default Sales History is set to 7 Days.
- Default Forecast Period is the future time period used to forecast sales and make replenishment recommendations. By default, Default Forecast Period is set to 7 Days.
- In-stock Expectation % is your threshold for the probability that your products will be in stock. By default, In-stock Expectation % is set to 99%.
- Select your choice for each of these attributes and Save the change.
FAQs: Velocity, Forecasting & Replenishment
What data is included in the Inventory Report - Sales Velocity report?
What data is included in the Inventory Report - Forecasting & Replenishment Report?
Video: Velocity & Forecasting