How To Automate Product Reorder Level Inventory Management

Why Automating Reordering Products is Important

Automating the reordering process can significantly streamline inventory management, ensuring that stock levels are maintained efficiently without manual oversight. By setting predefined thresholds, businesses can trigger automatic reordering of products when their quantities fall below these set points. This not only saves time but also reduces the risk of stockouts, ensuring that customer demands are met promptly. Automation in this area can lead to better resource allocation, where staff can focus on more strategic tasks rather than manual inventory tracking.

3 Reordering Inventory Management Bottlenecks You Can Avoid

1. Unexpected Stock Shortages: Automating reordering helps avoid the common pitfall of running out of stock unexpectedly. With automatic alerts and reorders, you're always one step ahead.

2. Overstocking and Understocking: Finding the right balance in inventory can be challenging. Automated reordering keeps your stock at optimal levels, preventing overinvestment in inventory and minimizing storage costs.

3. Wasted Time and Resources: Manual inventory management is time-consuming and prone to errors. Automation streamlines these processes, freeing up valuable resources for other important business operations.

Software Tools for Automated Inventory Management

1. Shopify Inventory Management - Shopify offers a robust inventory management system that's perfect for e-commerce businesses. It automatically updates product quantities as sales are made, and with the right apps or integrations, can automate reordering based on predefined thresholds. It's user-friendly, integrates seamlessly with your sales platform, and is one of the more affordable options for small to medium businesses.

2. Stitch Labs - Stitch Labs provides advanced inventory management features suitable for growing brands. It supports multichannel selling and can automate reordering by tracking inventory levels across all platforms. While it offers more complex functionalities, it's still fairly accessible for small to medium-sized enterprises.

3. TradeGecko (now QuickBooks Commerce) - QuickBooks Commerce, formerly known as TradeGecko, is an inventory and order management system for small to medium businesses. It automates the reordering process, integrates with multiple sales channels, and provides comprehensive insights into your inventory performance. Its pricing reflects its position as a mid-range option, suitable for businesses looking to scale.

4. NetSuite - NetSuite offers a comprehensive suite of business tools, including powerful inventory management features. It's designed for medium to large businesses, automating reordering and providing detailed analytics. While it's on the pricier side, it's a good investment for businesses looking for scalability and depth in functionality.

5. SAP Integrated Business Planning - SAP's solution is designed for large enterprises that need sophisticated inventory management. It automates reordering and provides real-time insights into inventory levels, demand forecasting, and supply chain management. It's the most expensive option but offers unparalleled depth and control for large-scale operations.

Using Shopify to Set up Automated Reorder Level Inventory Management

Here’s an in-depth step-by-step process:

1. Setting Up Inventory Tracking in Shopify:

   • Begin by ensuring that inventory tracking is enabled for each product you wish to automate reordering for. This can be done in the product details page under the “Inventory” section in your Shopify admin.

2. Defining Predefined Thresholds:

   • Shopify itself does not automatically reorder products when they reach a certain threshold. However, you can use Shopify's inventory reports to monitor stock levels and set up notifications for low stock.

3. Integrating with an Inventory Management App:

   • To automate the reordering process, integrate Shopify with a third-party app that specializes in inventory management. Apps like Stocky (for Shopify POS Pro users) or apps available in the Shopify App Store can automate reordering based on predefined thresholds. Install an app that meets your business's needs.

4. Configuring Automatic Reordering in the Inventory Management App:

   • Within your chosen app, set up automatic reordering by specifying the minimum stock level for each product. Once the inventory drops to this level, the app should automatically generate a purchase order or notification to reorder.

5. Customizing Reordering Preferences:

   • Customize your reordering preferences, including preferred vendors, reorder quantities, and whether you want to approve orders manually or automate the process entirely.

6. Monitoring and Adjusting Thresholds:

   • Regularly review your stock levels and sales data to adjust thresholds as needed. Market demands can change, and your automatic reordering settings may need tweaking to align with new sales patterns.

7. Leveraging Shopify’s Analytics:

   • Utilize Shopify’s analytics and reports to track the effectiveness of your automated reordering system. Analyze trends, identify best-selling products, and ensure your inventory levels are optimized for sales and seasonal fluctuations.

By following these steps, businesses can streamline their inventory management, reduce manual workload, and ensure that they never run out of stock or overorder products. Integrating Shopify with a capable inventory management app not only automates the reordering process but also provides valuable insights into inventory performance, helping businesses make informed decisions and maintain optimal stock levels.

If you’d like more automation options for your Shopify store, check out our automated Shopify store. Want to start slow? See for yourself what automation opportunities are out there with the Gear list.