Inventory - Stock Replenishment via Transfer

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Stock Replenishment via Transfer is an intelligent reordering process, creating Transfers through the use of various formulas to calculate a suggested quantity (instead of manually calculating the required quantities yourself). These formulas make it efficient in creating the Transfers by factoring in the current stock levels, historical sales periods, various inventory movements and more.

Tip: Using Retail Express you can run Stock Replenishment on demand as needed, or schedule your Transfers to be created automatically on a recurring basis

This article explains the Stock Replenishment via Transfer feature in more detail. Refer to the Inventory - Stock Replenishment via Purchase Order article for information on using Stock Replenishment to create Purchase Orders for your Suppliers.


Stock Replenishment Formulas

Retail Express has 4 different formulas available to select from to calculate a recommended stock reordering quantity.

Once a formula has been selected the system will recommend a quantity to be re-ordered (this can be manually adjusted as required). Using filters and various preferences you can fine-tune your requirements and quickly create a number of Transfer Requests ready for processing.

Click on the headings below to view more detail.

Tip: The system only suggests a reorder quantity - you can overwrite the quantity as required.

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The Sales Formula is based directly on product sales. The system re-orders the same quantity of products that were sold in your store during your selected "Sales Period" (this time frame is defined in the Filters).

Formula example:

Sales Period 30 days
Number of product units sold in the sales period 20 units
Suggested re-order quantity 20 units

Products within Retail Express have a Minimum Stock Level setting (MSL) for each of your individual Outlets. This is your ideal stocking holding figure, and may vary for each Outlet.

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Tip: Access your Minimum Stock Levels setting by editing a product and clicking the Inventory Tab, or by doing a Mass Download/Mass Upload (ensure you include your Outlet) and editing the MinQty column on the Outlet tab.

The Stock Replenishment MSL formula checks inventory levels to determine which products have a stock quantity below the MSL value. The suggested re-order quantity is the equivalent of the number of units that would be required to bring the stock quantity back to the Minimum Stock Level.

The calculation includes all of the following levels to determine the overall total inventory value:

  • Available
  • Transit-In
  • Received
  • Requested
  • On-Order

Prerequisite: Your products must have a Minimum Stock Level configured to use this formula - see the Inventory - Create and Edit a Product article for more information.

Formula example:

Formula used: Suggested re-order Quantity = MSL - (Available + Transit-In + Received + On-Order + Requested)
Product MSL for Outlet A 10 units
Current stock level 4 units
Suggested re-order quantity 6 units

The Run Rate formula is a more detailed formula taking into account historical sales information, product settings and current inventory levels.

Field Details
Daily Run Rate

Average quantity sold per day (using historical sales data to calculate this average automatically).

You can specify how many days the Run Rate should take into consideration during Step 2 of the transfer process. Entering a larger number will result in a more accurate prediction.

The Run Rate will change all the time based on how many products are sold. Some products are seasonal and have peak and low sales periods.

Lead Time

The time it takes to order your stock from your suppliers.

Lead time is entered on the Edit Product window in the value of days e.g. a Lead Time of 4 means 4 days from ordering to receiving the stock from the supplier.

Alternatively you can select a global Lead Time during Step 2 of the Stock Replenishment process; all products on the transfer will use the same Lead Time.

Inventory Levels

The following inventory levels are combined to calculate the current Inventory level for the product:

  • Available
  • Transit-In
  • Received
  • OnOrder
  • Requested

Using these data fields the system is able to suggest a re-order quantity to ensure that you have enough stock to cover the typical average of sales of this product.

Tip: If you're heading into a peak sales period you may need to adjust the numbers manually to account for greater sales e.g. Christmas retail trading will not be reflected in the trading figures for the months prior to Christmas. Using the average Run Rate may not result in an accurate prediction.

Formula example:

Formula Used Suggested Re-order Quantity =  (Daily Run Rate x Lead Time) - (Available + Transit-In + Received + OnOrder + Requested)
Daily Run Rate 10 units
Lead Time 4 days
Current Stock Level 12 units
Suggested Re-Order Quantity

28 units

Calculation: (10 x 4) - (12)

The Depleted Stock method is based on inventory movements within the system reducing your stock based on the Inventory Status.

  • Invoice
  • Stock Adjustment
  • Stock Take
  • Transfer
Field Details
Depleted Stock Stock that has been reduced i.e. had a negative movement recorded. This can be through either a Transfer, an order (where the Available stock has been reduced and the product Allocated to a customer), or a modification to the level through a Stock Adjustment or Stock Take.
Days Cover The number of days you would like to ensure you have stock available for. For example, if you do a Stock Replenishment run every 30 days, you would enter "30" into the field. This will ensure you're calculating a stock reorder quantity to cover you until you do your next Stock Replenishment run.
Inventory Status

The Depleted Stock formula factors in the following status fields for a product:

  • Available
  • On-Order
  • Transit In
  • Received
  • Requested

Note: If the system calculates you require 5 products for the Days Cover period, but you already have 15 on order no Transfer request will be created.

Inventory Movements

The following Inventory Movement types are factored into the Formula:

  • Invoice
  • Stock Adjustment (including adjustments performed through the Mass Upload)
  • Stock Take
  • Transfer

Formula example:

Formula Used Suggested Re-order Quantity = ((Depleted Stock/Period) x Days Cover) - (Available + On-Order + Transit In + Received + Requested)
Period 60 Previous days
Days Cover 30 days
Movement Type Transfers (dispatch to other Outlets)
Transfers in the previous 30 days: 24
Current Stock Level 8
Suggested Re-Order Quantity

4 units

Calculation: ((24/60) x 30) - (8)

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Using Stock Replenishment via Transfers

Click on the headings below to view detailed information on creating Transfers using the Stock Replenishment feature.

Using the Stock Replenishment by Transfer feature you can review the suggested re-order quantities and make amendments as required.

Example: you may typically run a replenishment based on sales made in the previous period. In the lead up to a peak trading period (Christmas etc) you can increase the re-order quantity to ensure you have enough stock on hand.

To create Transfers using the Stock Replenishment feature:

  1. Navigate to Inventory > Stock Replenishment > Stock Transfers 
  2. Select the Stock Reorder formula (see above for detailed information on each option)
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  3. Click Run Now
  4. Click Refine Search 
  5. Select an Outlet From and an Outlet To
    replenishment_transfers_outlet.gif
  6. Select from the remaining Search Fields options as required (see below for a detailed explanation of each option)
    Tip: Use the option "Hide Where Order Qty = 0" to hide products where a Transfer is not required (i.e. the suggested reorder quantity is zero)
  7. Click Search
  8. The proposed Reorder Products values will be displayed in the Qty column (detailed information on each of the columns can be listed below)
  9. Enter a manual value in the Qty column to override the amount if required
    stockreplenishment_transfers_results.png
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  10. Click Export to Excel to export a list of proposed Reorder Products
  11. Click Create ITOs to create the Internal Transfer Orders
  12. The Transfer Report page will automatically open
  13. Select the Transfer Status of In Progress
    transferreport_transferstatus.png
  14. Click Search
  15. Your Transfers are now ready to be picked and dispatched

Tip: Once the transfers are created they will have the Transfer Status of In Progress, with the Stock at the stage of Allocated.

The Filters window is made up of three sections:

  • Search Fields (covered below)
  • Refine Search
  • Refine By Attributes

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The Refine Search and Refine By Attributes sections are self-explanatory, but the details of the Search Fields are covered further below.

Fields Details
Sales From/Sales To

The sales period for which to suggest a re-order quantity of all products made in this period

*Used in the Sales formula

Run Rate Period

The number of days to consider the average units sold per day e.g. "60" is the equivalent of 60 days.

The Run Rate will change all the time based on how many products are sold. Some products are seasonal and have peak and low sales periods. Selecting a longer Run Rate period will result in more accurate suggestions.

*Used in the Run Rate formula

Lead Time

The number of days it takes to reorder the stock from the supplier

*Used in the Run Rate formula

Days Cover

The number of days you would like to ensure you have enough stock. For example, if you only do a Stock Replenishment run every 30 days, entering 30 will ensure the system calculates enough stock required to cover those 30 days.

*Used in the Depleted Stock formula

Order from Source

Controls the amount of stock that can be requested from the Source Outlet.

If "Available Only" is selected the Transfer will only be created for the maximum available stock, even if it's not the full requested quantity.

If "Full Re-Order Quantity" is selected the Transfer will be created for the full amount requested, even if that means the Source Outlet will be reduced to a negative value. The Source Outlet will be able to see that additional stock has been requested and use this information in its own Stock Replenishment to order more stock from the supplier.

Sales Only Transfers will only be created for products that have been sold during the sales period
Core Products Products with the "Core Product" option ticked in the product settings
Disabled By default disabled products are not included in results, ticking this option includes any products that have been disabled
Carton Quantity

Always order carton - the suggested re-order quantity will default to the value of a carton

Round to carton - the suggested re-order quantity will be rounded to the value of a carton. This feature is useful when the supplier only sells products in cartons rather than individually.

Order Required Quantity - order the suggested re-order quantity

Avail Below MSL Used to display only products currently below the Minimum Stock Level (MSL).
Hide Where Order Qty = 0 Hide products where the suggested re-order quantity is zero. This reduces a lot of clutter from the screen
Stock Levels

Some AVL Some Stores - At least 1 Outlet selected in the Search Filters has an Available quantity above 0

Zero AVL All Stores - All Outlets selected in the Search Filters have an Available quantity of 0 or less

Zero AVL Some Stores - At least 1 Outlet selected in the Search Filters has an Available quantity 0 or below

Cubic Measurement Adds the sum total of the items being ordered based on their cubic value to determine if the Transfer request will fit into a container for shipping, or a warehouse/storage area.
Sort Direction Which direction the report should be sorted by - ascending or descending. Clicking on a column heading in the Results tab will sort the results by that column e.g. Product ID.
Display Product Attributes The results tab shows only the default attributes automatically - Brad, Size, Colour and Season. If you have created custom Attributes these can be displayed by selecting "All"
Source Stock > 0 Display only products where the Source Outlet has Available stock.

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Field Details

Avl (Available)

Odr (On order)

TrfIn (Transfer In)

Faulty (Faulty Stock)

Rcd (Received)

Req (Requested)

Current stock levels in the To Outlet (where the stock is being transferred to).

For detailed explanations on each of these fields refer to the Products - Edit Products/Packages fields article

Sold

The number of products sold during the Sales From/To range on the Filters tab

YTD (Year to Date)

The number of products sold Year to Date

Depleted

The number of products the stock was reduced by during the selected period

*Used only in the Depleted Stock formula

Rate

The run rate for the product - average quantity sold per day

DOH (Days on Hand)

The expected number of "days on hand" before the product sells out. The value is based on the current stock on hand, plus stock on order, and factoring in the current ‘run rate’ of sales per month.

SI (Sales Indicator)

Sales Indicator as per the Product Type for the product. Used as a manual indicator for how fast the product sells.

MSL (Minimum Stock Level)

The minimum stock level for the product as configured on the Edit Product window.

Qty

The Quantity of stock to be transferred to the To outlet

Note: This field is populated based on the reorder method selected during step 1

Value The Order Total for the stock to be transferred (based on the Weighted Average Buy Price (Ex Tax) and the Quantity of stock being ordered)
Cubic The cubic value of the product (configured on the Edit Product window)
Rg Cubic (Running Cubic) The cubic value for the total quantity being ordered
Frm Avl (From Available) The current Available stock quantity at the From Outlet (Source Outlet - where the stock is being transferred from)
Frm Odr (From On Order) The current On Order quantity at the Source Outlet.

Using the Scheduled Replenishment feature you can prepare Transfers in advance to be run on an automatic schedule.

For example, you may buy all of your stock at the start of the season and store it in a Warehouse. Using the Scheduled Replenishment you could set up Transfers to be created automatically on a regular basis from the Warehouse Outlet to your store Outlets. This saves your employees from having to manually run this process - the transfers are already created for them!

Any special ordering (e.g. peak sales periods) could be processed using the "Run Now" Stock Replenishment process to create Transfers immediately.

Important: The Scheduled Replenishment process is a resource-intensive process; it's highly recommended to create the schedule to be run outside of business hours.

The first step is to create the schedule, including the Formula to be used and the frequency.

  1. Navigate to Inventory > Stock Replenishment > Stock Transfers 
  2. Select the Stock Reorder formula
  3. Click Run on Schedule
  4. The Configure Schedule window will be displayed
    scheduledreplenishment_configureschedule.png
    Click to view full size
  5. Enter a unique Name for the schedule
  6. Enter the Execution Time of day the process should begin (it's strongly recommended that this is performed out-of-hours as per the note above)
    Note: This time is in the Sydney timezone of AEST, or ADST when Daylight Savings is in effect
  7. Enter the Execution Period i.e. when the scheduled Transfers should begin and when they should end
    Tip: You must have an end date; to run the schedule ongoing set a Year far in the future e.g. 2099
  8. Enter the Recurrence using the weeks and the day of the week e.g. to run it every day you would enter every 1 week with all days ticked, or for once a month every 4 weeks on only one specific day
  9. Click Next
  10. Select the Replenishment Settings as required; see the next section for a detailed explanation of these fields (you can refine your product search further using the Refine Products and Refine Products by Attributes filters)
    Note: The fields you see on this screen will differ depending on the Formula selected e.g. the Sales formula will not see anything related to Run Rate
  11. Click Save Changes

Any Transfers created automatically in the future from this replenishment schedule will be created in the name of the user who created the schedule originally.

The Replenishment Settings will appear differently depending on which Formula has been selected. All of the settings have been described below.

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Field Details
Sales Period
  • x previous days: Selects sales processed the entered number of days before the scheduled transfer process runs e.g. If 7 days is selected and the schedule runs on the 29th of March, sales from 22nd - 29th will be returned. If the schedule runs again in 4 weeks on the 26th April, it will return sales from the 19th - 26th of April
  • Date range: used to select a specific date period for sales; this will be the same period used every time the schedule runs e.g. if the period 22nd - 29th of March is selected and the schedule runs every 4 weeks, when the schedule runs again in April it will still use the period 22nd - 29th of March.

Note: If the setting "Product with Sales Only" is ticked this field will become mandatory

Run Rate Period

The number of days to consider the average units sold per day e.g. "60" is the equivalent of 60 days.

The Run Rate will change all the time based on how many products are sold. Some products are seasonal and have peak and low sales periods. Selecting a longer Run Rate period will result in more accurate suggestions.

You can select this field based on the number of days previous, or from a specific period in time e.g. if preparing for Christmas trade, you could select the Christmas period from the previous year.

Days Cover

The number of days you would like to ensure you have enough stock. For example, if you only do a Stock Replenishment run every 30 days, entering 30 will ensure the system calculates enough stock required to cover those 30 days.

*Used in the Depleted Stock formula

Lead Time The number of days it takes to reorder the stock from the supplier
Order Quantity
  • Always order carton - the suggested re-order quantity will default to the value of a carton
  • Round to carton - the suggested re-order quantity will be rounded to the value of a carton. This feature is useful when the supplier only sells products in cartons rather than individually.
  • Order Required Quantity - order the suggested re-order quantity
Create Transfers as

The status of the Transfers when created. This will have a direct impact on the inventory levels for the product e.g. selecting "Allocated" will immediately reserve the stock for the transfer (reducing the Available quantity and increasing the Allocated quantity) whereas "Requested" will not affect the Available quantity, and only put in a request for the stock.

Order from Source

Controls the amount of stock that can be requested from the Source Outlet.

  • Available Only - the Transfer will only be created for the maximum available stock, even if it's not the full requested quantity.
  • Full Re-Order Quantity - the Transfer will be created for the full amount requested, even if that means the Source Outlet will be reduced to a negative value. The Source Outlet will be able to see that additional stock has been requested and use this information in its own Stock Replenishment to order more stock from the supplier.
Source Outlet

Where the stock is being transferred from

Destination Outlets

Where the stock will be transferred to

Tip: Hold Ctrl and click to select multiple outlets (Transfers will be created for the Outlets individually)

Products with Sales Only

Transfers will only be created for products that have been sold during the sales period

Tip: This is useful when used with the Run Rate formula method e.g. Replenish stock that sells (run rate) but if I haven't sold it in the Sales Period specified don't reorder any new stock.

Core Products Only

Products with the "Core Product" option ticked in the product settings

Include Disabled Products

By default disabled products are not included in results, ticking this option includes any products that have been disabled

Avail Below MSL

Used to display only products currently below the Minimum Stock Level (MSL)

*Not shown on the MSL Formula (as it's assumed that you're only looking for products with this setting enabled)

To edit the Replenishment Settings (Outlets, quantity settings, filters etc) you will need to:

  1. Navigate to Inventory > Stock Replenishment > Scheduled Replenishment
  2. A list of the schedules will be displayed
  3. Click the pencil icon to edit the schedule (you can also click the trash icon to delete the schedule altogether if required)
  4. The Replenishment Settings will be displayed
  5. Update the settings as required
  6. Click Save Changes

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To edit the Schedule Settings (time/date settings of when the schedule runs) you will need to:

  1. Navigate to Inventory > Stock Replenishment > Scheduled Replenishment
  2. A list of the schedules will be displayed
  3. Click the pencil icon to edit the schedule (you can also click the trash icon to delete the schedule altogether if required)
  4. The Replenishment Settings will be displayed
  5. Click Schedule Settings
  6. Update the settings as required
  7. Click Next
  8. Make any further changes if needed to the Replenishment Settings
  9. Click Save Changes

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Frequently Asked Questions

Once the transfers are created they will have the Transfer Status of In Progress, with the Stock at the stage of Allocated.

An In Progress status for your Transfer results in the following stock movement occurring (example image below is an extract from the Inventory Movement Log):

  • In Green - the From Outlet has the Available stock decreased and the Allocated stock increased
  • In Purple - the To Outlet has the Requested stock increased

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The Scheduled Replenishments window, where you can view existing schedules, also includes information on the date the schedule last ran along with the "Last Run Status". You can also preview when the schedule will next run.

To view the last run status:

  1. Navigate to Inventory > Stock Replenishment > Scheduled Replenishments
  2. View the details as required

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The Transfer Report is used to keep track of Transfers, including Scheduled Transfers. The Transfer Type filter allows users to filter by Scheduled Replenishment to view only Transfers created as a result of a Schedule.

  1. Navigate to Inventory > Transfer Management > Transfer Report
  2. Select Scheduled Replenishment in the Transfer Type filter
  3. Update any other filters as required
  4. Click Search

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