OneCart's low stock planner is a simple forecasting module, designed to help you plan and prioritise repurchasing activities before reaching stockout (and potentially losing out of sales), while also minimising heavy cash investments into stocks.
Using the last 3 months of your sales history, OneCart is able to forecast the number of months left before reaching quantity = 0 using the following formula:
Number of months left to stockout = (quantity on hand) / (Average of last 3 months of sales)
As an example, suppose SKU ABC currently holds 20 pieces in your warehouse, and has the following sales history from the last 3 months:
Month 1 : 5 sales
Month 2 : 8 sales
Month 3 : 2 sales
Average of last 3 months of sales = (5 + 8 + 2) / 3 = 5
Number of months left to stockout = 20 / 5 = 4 months
With this information readily available in your Low Stock Planner, you can prioritise your repurchasing activities around SKUs that are 1 to 3 months away from reaching stockout to avoid loss of sales.
Please do also take into account your suppliers' lead time for delivering stocks when planning your repurchasing activities.
Using OneCart's Low Stock Planner will allow you to:
- invest cash only into the highest-priority SKUs AND at the right time to avoid loss of sales (i.e., just a few months from reaching stockout)
- avoid unncessary and untimely cash investments in SKUs that are still many months away from reaching stockout.
With the strategies above, this will also help you to allocate cash to new SKUs you wish to publish online as you expand your inventory.
Using OneCart's Low Stock Planner, you will be able to maximise your business' cash flow to keep running a healthy operation.
You can find your Low Stock planner here : https://app.getonecart.com/simple_stock_planner