NewsForecasting19 Oct 20262 min read

Why your reorder point should change every week

A fixed reorder point is a photo of last month. Here is how Hylla recalculates it from sell through, lead time and the renewals that are already on their way.

HSHugo SandbergCofounder

Most inventory tools ask you for a reorder point once, during setup, and then treat it as truth. For a brand that is growing, or seasonal, or running a campaign, that number is wrong within weeks. Hylla takes a different view: the reorder point is an output, not an input.

Three things move the number

First, sell through. Not total sales, but units leaving per week, split by where they come from: one time orders, first orders from new subscribers, and renewals. The split matters because the three behave differently when you grow.

Second, lead time as a range. Your supplier says "4 weeks"; your last six orders say 3 to 6. Hylla plans on the slow end and tells you when an order is inside that window.

Renewals are the part of demand you have already earned but have not shipped yet.

Third, renewals in the pipeline. Every subscriber you signed this month orders again next cycle, at your reorder rate. That demand is not visible in last month's sales, but it is already decided. This is the line that steepens in the projected stock chart, and it is why a flat extrapolation under orders for any brand that is working.

Days of stock left
4
-38%
The projected stock line steepens as renewals build up.

The reorder point becomes a date

Put the three together and the reorder point stops being a quantity and becomes a sentence: order by 11 Nov, because the fill run takes four weeks and stock runs out 20 Jan. That is the sentence at the top of every Hylla screen, and everything else on the screen exists to prove it is right.

What this means in practice

  • Check the planner once a week, not the stock levels every day.
  • When the bar for a product turns amber, you are inside the lead time window: order this week.
  • If you run a campaign, use the what if controls first and watch which order moves.

If you want to see it on your own numbers, start a free trial. It reads your Shopify store in about two minutes.

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