Reorder points beat forecasting for most distributors

Distributors are frequently sold forecasting software before they have a reliable reorder point. That is the wrong order. A forecast is only as good as the demand pattern behind it, and most distributed goods do not have a smooth enough pattern to reward the extra complexity.

Start with a number you trust

A reorder point needs three honest inputs: average daily usage, lead time from the supplier, and a safety margin for the variability in both. Most companies already know these numbers approximately — the work is writing them down per SKU rather than trusting memory.

Review the exceptions, not the whole catalogue

Once reorder points are set, the system should raise the SKUs that behaved unexpectedly — a lead time that slipped, a sudden demand spike — rather than asking someone to review every line every week. That is what turns a reorder point system from a one-off setup into something that stays accurate.

Forecasting earns its cost once you have high-volume, fast-moving lines with genuine seasonal pattern. For the rest of the catalogue, a reorder point somebody actually believes will outperform a model built on data too thin to support it.

If this sounds like your operation, we can walk through your process and show you where Logirynx would fit.

Talk to our team