Business Intelligence in 60 seconds - Indicators and KPIs - Reorder Point and Lead Time
- Up Journey Partners
- Mar 8
- 1 min read
BI in 60 seconds is a series of posts dedicated to providing very quick BI insights, but with high and immediate applicability.
The question :
We are constantly telling customers that the product is out of stock. Why?
Key point:
Real lead time: do we know how long it actually takes for each order to be fulfilled by the supplier?
Reorder point: do we know exactly when to place an order to replenish stock, based on consumption, lead time, and safety stock?
Common error
Placing the order too late, due to a failure to ensure a safety stock.
Working with a "contracted" lead time that does not correspond to the actual lead time.
Road to #profit
Knowing exactly when to place an order ensures that inventory levels don't reach zero.
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