Set Up Velocity, Forecasting & Replenishment | How To

Available to Existing Inventory Management Subscribers

This feature is only available to existing Inventory Management subscribers. Non-Inventory Management subscribers can learn more about using the ShippingEasy Product Catalog.

We are not currently opening Inventory Management to new users or developing new features or functionality for our Inventory solution. This means that at this time we cannot address the issues you have with the current system.

If you need an inventory solution that lets you add your third-party fulfillment provider to your account, our sister company ShipStation may be a better solution for you.

Velocity, Forecasting & Replenishment is a set of metrics and reports that identify how quickly your products sell. ShippingEasy tracks the rate at which you sell products and uses this information to recommend when to restock your products and how much to stock. This helps you save money by maintaining lean inventory without stockouts!

You can use Velocity, Forecasting & Replenishment with its default values. To get results that work best for your business, you can configure default attributes for Velocity, Forecasting & Replenishment reports.

To set up Velocity, Forecasting & Replenishment, review these attributes:

  1. Safety Stock

  2. Lead Time

  3. Default Sales History

  4. Default Forecast Period

  5. In-stock Expectation %

All five attributes can be updated on the INVENTORY SETTINGS page:

Settings
NAV_Settings_Inventory_MRK.png

Video: Sales Velocity and Forecasting

If you prefer, feel free to watch this short video that covers the information in the below sections and follow along in your ShippingEasy account.

Set Safety Stock and Lead Time

Both Safety Stock and Lead Time can be updated on the INVENTORY SETTINGS page.

SET_ACCTSET_Inventory_SafetyStock-LeadTime_MRK.png

Safety Stock is the amount of stock you always have on hand. Entering a Safety Stock value on this page applies to all of your products. Learn more about setting up Safety Stock.

There are two reasons to set up a Safety Stock (if neither applies to your business, you can leave Safety Stock blank):

  • Universal Safety Stock: 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.

  • Velocity, Forecasting & Replenishment: When ShippingEasy calculates the DTR (Days to Reorder), your Safety Stock value is converted to days (Safety Stock divided by Velocity) to ensure this buffer is accounted for when determining when to restock.

    ShippingEasy also accounts 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.

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. Learn more about setting up Lead Time.

Select your choices for the Safety Stock and Lead Time attributes, then Save your changes.

Red box highlights blue Save button.

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 and Product Details and when creating a Purchase Order.

SET_ACCTSET_Inventory-ForecastingSettings_AllValues_MRK.png
  • 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.

Red box highlights blue Save button.

    Attachments

Comments

Add a Comment

Please sign in to leave a comment.

    Tags:
  • answerbot_article_public