Timely reordering is the key to ensuring that you do not run out of the supplies you need to run your business or complete jobs.

Products are assigned a reorder level. This is the quantity at which the product should be reordered so you will not run out. As product is removed from inventory or used in a job, transactions will decrease the in stock quantity.

Once the in stock quantity reaches the reorder level, the product will appear on the inventory screen as a product ready to be reordered.

The reorder level takes the guess work out of what products need to be ordered and when. The products that need to be reordered are always a click away.

So how do I determine a good reorder level?

The first step is to use historical information to identify how much a product is used over a period of time.

Next, determine the lead time, order to delivery for the product.

Once you know how much product you use over a period of time and how long it takes to get an order, you can determine how low your inventory can drop before you need to reorder the product. That is your reorder level. It does not hurt to cushion it a bit to allow for unforeseen events and adjustments can be made over time when conditions dictate.