Category / Replenishment

Why shouldn't a replenishment suggestion be a single total?

Because the same product can come in different Bundles, sit in different stores' stock and come from different suppliers. A useful replenishment suggestion has to be broken down by sales velocity, stock, turnover rate, replenishment cycle and supplier before it can produce an Excel purchase order that can be checked.

Updated
Reading time
About 3 min read
By
RAID Team

A single total only says 'restock'; it does not say which supplier to order from, which product to restock or how many. In the end, the team still has to split the number by hand and compile it into Excel.

What does a single total leave out?

The variables in replenishment sit in different places, and a single total cannot reflect them:

  • The same product is sold in different Bundles, and each Bundle uses up a different number of units
  • Stock is spread across different stores and warehouses
  • Different products come from different suppliers, each with its own lead time

Which factors should a replenishment suggestion take into account?

  • Current stock: how many units are left now
  • Sales velocity: you can choose average daily sales over the past 7, 14 or 30 days as the reference
  • Lead time: how many days it takes from placing an order to receiving the goods
  • Safety stock: the minimum stock level you want to keep
  • Stock turnover rate and replenishment cycle
  • Consumption by different Bundles

How is the suggested quantity calculated?

RAID uses this simplified formula:

Suggested restock quantity = (average daily sales × lead time in days) + safety stock - current stock

If the result is above 0, the product needs restocking. Lead time defaults to 7 days and safety stock to 3 days' sales; both can be set separately for each product.

AI replenishment presets: where does the replenishment baseline come from?

RAID's AI replenishment presets learn from the merchant's replenishment habits over the past 6 months and recommend a replenishment baseline and multiplier, with a confidence level, so the team does not have to set up every product from scratch.

  • It needs a record of at least 6 orders in the last 6 months.
  • A new store without enough history starts from industry defaults; the presets learn automatically as more restocks are placed.
  • AI suggestions can be edited before an order is placed, and the merchant confirms order quantities.

From suggestion to purchase order: what is the process?

  1. Compile: the system compiles the products that need restocking.
  2. Sort: they are sorted by supplier.
  3. Suggest: quantities are suggested.
  4. Check: the team checks and confirms the purchase.
  5. Generate: an Excel purchase order is produced.

The merchant gives final confirmation on order quantities; RAID never places orders with suppliers fully automatically.

How does RAID handle this?

RAID's data-backed replenishment brings together current stock, sales velocity, stock turnover rate, replenishment cycle, supplier lead times and consumption by different Bundles, and uses AI replenishment presets to recommend a replenishment baseline and multiplier. After sorting by supplier, it suggests quantities; the team then checks them and generates an Excel purchase order.

Key points

  • Replenishment suggestions need to be broken down by product, Bundle, store and supplier so that each line can be checked.
  • The core factors are sales velocity, current stock, lead time, safety stock, turnover rate and replenishment cycle.
  • Simplified formula: (average daily sales × lead time in days) + safety stock - current stock.
  • AI replenishment presets recommend a replenishment baseline and multiplier from the past 6 months' replenishment habits, with a confidence level.
  • The merchant gives final confirmation on order quantities; the system never places orders fully automatically.