Smart Replenishment (Version 2, Beta)

Last Updated: Dec 05, 2018 02:42PM PST
With Stitch, you can set up automated reorder alerts and view suggested reorder dates and quantities based on sales velocity, lead time, and other information specific to your supply chain.

Note: This article applies only to our latest version, Stitch X.

Note: This feature is available only to on-contract customers at certain plan levels.

Required setup

Add supplier info to your variants

To calculate reorder dates and quantities, Stitch requires complete supplier/variant associations, which you can set individually or in bulk via the Supplier Association CSV.

Sales velocity and reorder suggestions are specific to each warehouse. This means that if you stock and sell across multiple locations, Stitch will suggest separate reorder dates and quantities for each location.

If you purchase based on aggregate sales velocity (for example, receiving into a centralized distribution center before transferring to retail locations), please contact dan [at] stitchlabs [dot] com to discuss how we might support your purchasing model.

"Automate" must be on

To reduce unnecessary suggestions, Stitch will only calculate reorder dates and quantities for variant/supplier relationships where Automate is on. You can enable this in the app via Variant Detail > Suppliers > Automate:

You can enable this in bulk via the Enable Smart Replenishment column in the Supplier Association CSV:

How Stitch calculates reorder dates

For each variant/supplier relationship and warehouse, Stitch suggests reorder dates using the following formula:


Days Until Reorder = Stockout + Inbound - Lead - Safety

Variable Description Source
Stockout Days of available inventory (available units ÷ sales velocity) Auto-calculated
Inbound Days of inventory expected into that warehouse via purchase order or transfer order (inbound units ÷ sales velocity) Auto-calculated
Lead time in days Days expected between submitting a PO and receiving stock User-defined
Safety stock The minimum number of days of inventory you wish to maintain (often used to account for supply delays) User-defined
For example, if you have 40 units available, 160 units inbound, and a sales velocity of 2 units per day, Stitch projects 20 days until stockout (40 ÷ 2) and 80 days of inbound stock (160 ÷ 2). If your lead time is 90 days and you want to maintain at least 10 days of safety stock, Stitch would calculate your days until reorder as 20 + 80 - 90 - 10. With 0 days until reorder, your suggested reorder date is today.

How Stitch calculates reorder quantities

For each supplier/variant relationship and warehouse, Stitch suggests a reorder quantity:


Reorder Quantity = ((Quantity in Days + Lead Time) * Velocity * Growth Multiplier) - Quantity Available - Quantity Inbound

Variable Description Source
Quantity in days Your maximum desired on-hand quantity, expressed in days. Typically this is lead time (in days) plus safety stock (in days). If your lead times are highly predictable, you may not need to include safety stock here. User-defined
Lead time in days Days expected between submitting a PO and receiving stock User-defined
Velocity Your sales velocity for that warehouse, based on the default interval/timeframe selected in Stitch Settings Auto-calculated
Growth multiplier Expected change in velocity for this item and warehouse, expressed as a decimal value (ex: 1.5, 0.5, 1, etc.) User-defined
Quantity Available The quantity available for this item in this warehouse Stitch-defined
Quantity Inbound The quantity already expected to arrive in this warehouse via purchase order or transfer order Stitch-defined
Minimum order qty Minimum number of units you can order from the supplier User-defined
For example, assume your desired quantity in days is 100, lead time in days is 90, velocity is 2 units/day, expected sales growth is 50% (1.5x), available quantity is 40, and inbound quantity is 160. The reorder quantity would be as follows:
 
((100 + 90) * 2 * 1.5) - 40 - 160 = (190 * 2 * 1.5) - 200 = 570 - 200 = 370.

Replenishment emails

Admins and account owners can receive replenishment email alerts at the day(s) and time of their choosing, configured via Settings > Users > Notification Settings:

When this email alert is on, Stitch will send an email for each reorder date alert (which is specific to a variant, location, and supplier).

Each email alert will have the following information:

The email includes a direct link to the variant as well as a link to the replenishment report.

Replenishment report

To see all replenishment suggestions in one table, check out the replenishment report.