Glossary›Reorder point
Reorder point
The reorder point is the stock level at which a reorder must be placed so that the goods arrive before the remaining stock is used up.
What it means
It follows from daily consumption, the replenishment lead time and a safety stock for fluctuations. If a ward uses 200 units a day and delivery takes six days, the reorder point is at least 1,200 units plus a reserve.
If consumption is calculated from actual issues rather than estimated, the reorder point adjusts with it.
Why it matters in procurement
A reorder point set too low leads to shortages on the ward, one set too high to surplus stock that ties up capital and may expire. The right value is the basis for supply without counting and without emergency orders.
How SANOVIO works with it
SANOVIO knows stock and consumption per article, flags when the reorder point is reached and, if you wish, reorders before anyone has to count.