Why Stockouts Quietly Cost You
When a customer asks for your bestseller and you are out, you lose the sale — and sometimes the customer, to the shop or app that had it. Stockouts are invisible on your books because you never record the sale that did not happen. A low-stock alert system fixes this by warning you before you run out, so you reorder in time.
The Core Idea: Reorder Points
A reorder point is the stock level at which you should place a new order. Set it right and fresh stock arrives just as the old stock runs low. The simple formula:
Reorder point = (average daily sales × supplier lead time in days) + safety stock
- Average daily sales: How fast the item sells.
- Lead time: How long your supplier takes to deliver.
- Safety stock: A buffer for demand spikes or supplier delays.
Example: an item selling 10/day, with a 5-day lead time and 20 units of safety stock, has a reorder point of (10 × 5) + 20 = 70 units. When stock hits 70, it is time to reorder.
Setting Up Alerts
- Set a reorder point per product — not one blanket number. Fast movers and slow movers need different thresholds.
- Enable automatic alerts in your inventory software so it notifies you when stock hits the point.
- Choose the channel — dashboard flag, email, or WhatsApp — so the alert actually reaches you.
- Link to suppliers so reordering is one click, not a hunt for contact details.
Tuning Thresholds Over Time
- Seasonality: Raise reorder points before festival or peak seasons.
- Trends: Review fast-rising items so their thresholds keep pace.
- Dead stock: Lower or remove reorder points for slow movers — do not auto-restock items that barely sell. See how to handle dead stock.
Avoid These Mistakes
- Using one reorder point for every product regardless of sales speed.
- Ignoring supplier lead time, so stock arrives too late.
- Setting alerts but sending them nowhere you check.
- Never revisiting thresholds as demand changes.
Conclusion
Low-stock alerts turn reordering from a reactive scramble into a calm routine: the system watches your stock and tells you exactly when to act. Set per-product reorder points, route the alerts somewhere you will see them, and adjust for seasonality. Combined with barcode-accurate stock counts, you can genuinely stop running out. InfiBis tracks stock in real time and fires low-stock alerts automatically so bestsellers stay on the shelf.