The operational problem
When an order arrives matters as much as current stock
A supplier that delivers in three days and one that delivers in six weeks require different reorder timing for the same sales rate.
Using a generic threshold without lead time can trigger replenishment after the available inventory is already insufficient to cover the delivery period.
The workflow
Use lead time in the reorder decision
- 1Record the supplier lead time in days.
- 2Multiply that duration by average daily sales.
- 3Add the chosen safety-stock buffer.
- 4Compare available inventory with the resulting reorder point and begin purchasing when the threshold is reached.
What Supremo provides
Specific capabilities for this job
- Lead-time field in supplier and sourcing records.
- Lead time used directly in automatic reorder calculations.
- Expected dates on purchase orders.
- Actual lead-time reporting from PO history.
- Supplier on-time and fill-rate reports.
- Ability to update planning inputs as supplier performance changes.
Fit boundary: Supplier data must be maintained. Supremo can report actual delivery history, but external disruptions and unrecorded supplier changes cannot be predicted.
Example: the slower supplier needs an earlier order
At five units per day, a seven-day supplier requires 35 units of lead-time demand before safety stock. A 30-day supplier requires 150 units. The longer lead time moves the reorder trigger much earlier.
Frequently asked questions
Related Supremo resources
Put the workflow into practice
Connect your Shopify catalog, set supplier and replenishment inputs, and manage purchasing from one place.