How to Reduce Stockouts by 80% Without Tying Up More Capital

Most stockouts are not bad luck � they are predictable failures of process. Fix the process and stockouts collapse.

1. Set reorder points from real data

Reorder point = (average daily sales � lead time in days) + safety stock. If you're guessing instead of calculating, you're either holding too much or running out.

2. Measure supplier lead time honestly

The lead time on the PO is rarely the lead time you actually get. Track every PO and use the rolling 90-day average.

3. Use safety stock formulas, not hunches

Safety stock = z � s � vL, where z is your service-level factor, s is demand standard deviation, L is lead time. Your WMS should calculate this.

4. Forecast seasonality

Q4 is not Q1. Bake seasonal multipliers into your reorder calculations.

5. Score your suppliers

On-time delivery, in-full delivery, defect rate. Rank suppliers and route your A-items to the top three.

VasKem automates reorder points and supplier scorecards.