Better stock decisions start with clear answers.

When should I reorder stock?

Reorder when your inventory position reaches your reorder point. A basic reorder point is average daily demand × supplier lead time + safety stock. Inventory position includes usable on-hand stock and confirmed inbound stock, less unfulfilled demand.

Reorder point = daily demand × (lead-time days + buffer days)

Example: You sell 20 units per day. Delivery takes 7 days and you hold a 3-day buffer. Your reorder point is 20 × (7 + 3) = 200 units. With 120 usable units and no incoming orders, the gap to that target is 80 units.

Those 80 units are a simple planning gap, not an optimized economic order quantity. Review minimum orders, pack sizes, dated receipts, reservations and the next purchasing review date. A fixed buffer is a starting assumption; variable demand and delivery times need a more detailed safety-stock model.

Will my stock last until delivery?

Divide usable on-hand stock by average daily demand to estimate days of cover. Compare that with the time until your next confirmed usable receipt. Stock may run out first if cover is shorter than the delivery wait.

Days of cover = usable on-hand stock ÷ average daily demand

Example: 120 units ÷ 20 per day = 6 days of cover. A delivery due in 7 days leaves a potential one-day gap. Ask about an earlier partial delivery, a stock transfer or an approved substitute.

Check demand and receipts day by day when orders arrive on different dates. Exclude damaged, expired, quarantined and allocated stock. If demand is zero, days of cover is not a useful finite estimate. Expiry or a sudden demand spike can invalidate a reassuring average.

How do I reduce excess inventory?

Identify items with more usable stock than expected demand can consume over your chosen planning horizon. Review ageing, recent movement, expiry, open purchase orders and commitments before reducing purchases or moving stock.

1. Choose a review horizon that fits replenishment and shelf life, such as 30 days.
2. Compare each SKU's stock cover and last movement date with its expected demand.
3. Check seasonal items and critical spares before calling them excess.
4. Review unreceived purchase orders: defer or reduce them only with supplier agreement.
5. Consider transfers, supplier returns or approved promotions; assign an owner and review date.

Example: 900 units on hand, 10 units sold per day and a chosen 30-day target imply 90 days of cover and a 600-unit gap above that target. That is a review flag, not an instruction to dispose of 600 units.

Excess-stock review worksheet

Copy this table into your worksheet or print this page. The first row is illustrative; keep business records in your own controlled workspace.

Review gap = max(0, usable on-hand − daily demand × target days)

This screening formula excludes inbound orders and commitments. Review these separately. For zero-demand items, investigate the reason rather than dividing by zero.

How do I track supplier delays?

Keep the original promised delivery date, latest confirmed date, ordered quantity and received quantity for every purchase-order line. Compare outstanding lines with stock cover and the date customers need the goods.

A practical purchasing workflow

1. Order: record PO number, supplier, SKU, quantity, original promise and responsible buyer.
2. Confirm: retain the supplier's acknowledgement and record any revised date separately.
3. Receive: log actual receipt dates and quantities, including partial deliveries.
4. Review: flag overdue outstanding quantities and deliveries expected after stock runs out.
5. Act: record the escalation, agreed action, owner and next follow-up.

Example: A supplier promises 100 units on 10 November. Only 40 arrive that day. On 12 November, 60 units remain outstanding and two days overdue against the original promise. A revised date of 14 November should not erase the original commitment.

SCMSigma connects purchase planning, supplier records and stock operations. Use the sample demo to review the workflow; confirm which date fields, alerts and reporting are enabled in your company deployment. This guide does not claim automatic carrier tracking or supplier messaging.

How do I trace a recalled batch?

Start with the exact product and lot or batch identifier. Reconcile supplier receipts, warehouse locations, transfers, remaining quantities and outbound records to determine which recorded stock and recipients may be affected.

1. Identify the affected SKU, batch or lot, supplier and receipt references.
2. Follow your recall procedure to hold affected stock and prevent further dispatch.
3. Reconcile receipts, transfers, returns, sales and current quantities using linked records.
4. Identify affected recipients and follow applicable notification and recall procedures.
5. Retain evidence, actions, quantities and responsible people for review.

Example: A recorded batch receipt contains 100 cartons. Records show 30 still held and 70 shipped. Reconcile the 70 against individual recipients, including returns and transfers. Missing batch identifiers break the chain and require investigation.

What SCMSigma supports—and what to validate

SCMSigma provides inventory movements, supplier records, role-based access and audit history. Before relying on it for a recall, validate that your deployment captures batch identifiers on every required receipt and outbound movement and can reconcile affected recipients. This page does not claim a certified recall-management system.

The Polygon Amoy testnet pilot anchors inventory-record fingerprints. Comparing a record with its anchored fingerprint can reveal a mismatch. It does not prove that the original input was true, physically protect goods or replace batch records. Purchasing fingerprints remain proposed.

What inventory software should Dubai distributors look for?

Look for software that connects SKU-level stock, demand, supplier lead times and purchase planning, with clear imports, staff permissions and deployment scope. Test it with representative items and workflows before adopting it.

SCMSigma is browser-based supply chain planning and inventory software intended for distributors, wholesalers and trading companies. Teams can review demand forecasts, safety stock, reorder points, purchase plans and stock operations.

Confirm UAE requirements, enabled modules, onboarding and commercial terms before introducing live records. The public demo uses fictional sample data; some advanced workbooks have different availability in shared company workspaces.

Put one answer to work today.

Choose a SKU and check its stock cover. Then explore how inventory and purchasing connect in the sample workspace.