Calculate your reorder point and safety stock. Know exactly when to place your next order to never run out of inventory.
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The reorder point (ROP) is the inventory level at which you should place a new order to avoid running out of stock. It accounts for both the demand during your lead time and a safety buffer. Formula: ROP = (Daily demand × Lead time) + Safety stock.
Safety stock protects against lead time variability and demand spikes. For importers, 2–4 weeks of demand is typical, but it depends on how variable your supplier lead times are. If your supplier frequently misses dates, carry more.
Total import lead time includes: supplier production time (2–8 weeks), ocean shipping (2–6 weeks), port processing and customs clearance (1–2 weeks), and delivery to your warehouse (1–3 days). Air freight dramatically reduces shipping time.
Supply Chain tracks actual lead times for each supplier and each product. Over time, you'll see your real average lead time and variability, so you can set accurate reorder points and safety stock levels.
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Compare sea freight vs air freight costs & transit times
Find your optimal order quantity using EOQ analysis
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