Inventory Alerts & Reorder Points

Purpose
This guide explains how to track your stock levels, set up inventory alerts, and plan reorder points to prevent stockouts or overstock situations in the Fulfillment Control Panel (FCP).

1. How Inventory Levels Are Updated

Inventory levels in your Fulfillment Control Panel automatically update when:

• New stock is received and scanned into storage
• Items are shipped from your orders
• Returns or damaged items are processed
• Inventory adjustments are made by EFS staff

Each update triggers a change in available quantities and can send email alerts if thresholds are set up under Client Info → Manage Email.

Real-Time Updates

Inventory counts reflect:

• Good Inventory: Available units ready to ship
• Hurt Inventory: Damaged or defective items requiring disposition
• Hold Inventory: Inventory that is being held for future orders.

Viewing Your Current Inventory

Access your inventory levels through multiple methods:

Option 1: View Items Page

1. Navigate to Client Info → View Items
2. View real-time quantities by SKU

Option 2: Inventory Spreadsheet Report

1. Go to Reports → Inventory Spreadsheet
2. Generate sortable lists by SKU, description, or quantity
3. Export data for analysis
4. Filter options include:
• Show only SKUs with good inventory
• Show only SKUs with hurt inventory > 0
• Show all inventory including deleted SKUs

Important: Inventory notifications cannot be “resent” once delivered. Monitor your FCP dashboard regularly and check email notifications promptly.

2. Managing Email Alerts

Email alerts notify you of critical inventory changes and updates. Proper notification management ensures you stay informed about stock levels and inventory issues.

Setting Up Email Notifications

Configure who receives inventory alerts:

1. Log into the FCP
2. Navigate to Client Info → Manage Email
3. Add or remove recipient email addresses
4. Select notification types for each contact

Available Notification Types

Best Practices for Email Management

✓ Maintain at least two active contacts to ensure continuity
✓ Include your Account Manager during onboarding (they’ll remove themselves after setup)
✓ Use role-based emails ([email protected]) for team coverage
✓ Review distribution list quarterly to remove inactive users
✓ Set up email filters to organize EFS notifications by type

Important: Keep at least one active contact on these lists to ensure you receive time-sensitive inventory updates, especially for receiving confirmations and damage reports.

3. Setting Up Low-Stock Alerts

EFS does not automatically create reorder points, but you can manually monitor and establish low-stock thresholds using inventory data in your FCP and external inventory management tools.

Calculating Your Reorder Point

Use this formula to determine when to reorder:

Reorder Point = (Average Daily Sales × Lead Time in Days) + Safety Stock

Example Calculation:

• Average daily sales: 7 units
• Supplier lead time: 14 days
• Desired safety stock: 20 units (to cover unexpected demand)
• Reorder Point: (7 × 14) + 20 = 118 units

Step-by-Step Setup Process

Step 1: Analyze Historical Sales Data

1. Go to Reports → Transaction Spreadsheet
2. Select date range (recommend 90 days minimum)
3. Export and calculate average daily/weekly sales per SKU
4. Identify seasonal trends or fluctuations

Step 2: Determine Lead Times

• Document supplier manufacturing time
• Add shipping transit time to EFS
• Include EFS receiving processing time (2-3 business days standard)
• Add buffer for holidays and weekends

Step 3: Set Safety Stock Levels

Consider these factors:

• Sales velocity variability (higher variation = more safety stock)
• Supplier reliability (inconsistent suppliers = more buffer)
• Product importance (bestsellers need higher safety stock)
• Storage costs (balance protection against carrying costs)

Recommended safety stock levels:

• High velocity/critical items: 2-3 weeks of average sales
• Medium velocity items: 1-2 weeks of average sales
• Low velocity items: 1 week of average sales or minimum order quantity

Step 4: Monitor Your Thresholds

1. Go to Inventory → View Items regularly
2. Review current quantities per SKU
3. Compare against your calculated reorder points
4. Place orders when quantities fall below threshold

Using FCP Low Stock Threshold Settings

While EFS doesn’t send automatic alerts, you can use the FCP’s low stock threshold feature for visual tracking:

1. Navigate to Client Info → My Settings
2. Scroll to “Low Stock Threshold Settings”
3. Set a default threshold (e.g., 20 units)
4. Apply to all SKUs or configure individually
5. Low stock items will be highlighted in inventory views

Note: This feature provides visual indicators in your FCP but does not send automated email alerts. You must manually check your inventory to see which items are below threshold.

4. Using Inventory Reports

The FCP provides several reports to help monitor stock levels and identify trends.

Available Inventory Reports

Inventory Spreadsheet Report

• Location: Reports → Inventory Spreadsheet
• Purpose: Current snapshot of all inventory
• Features:
• Sort by SKU, description, or quantity
• Filter by good/hurt/hold status
• Export to Excel/CSV

Inventory Forecast Report

• Location: Reports → Inventory Forecast Report
• Purpose: Track inventory movements over time
• Features:
• Select custom date ranges
• Shows historical amounts sold.
• Current stock that is available
• Forecasts amount sold and the stock sold after forecast

Transaction Spreadsheet

• Location: Reports → Transaction Spreadsheet
• Purpose: Detailed order and shipment history
• Features:
• Sort by order date, ship date, or customer
• Shows SKU sales velocity
• Useful for calculating reorder points
• Export for sales analysis

Running Effective Inventory Reports

For Low-Stock Identification:

1. Go to Reports → Inventory Spreadsheet
2. Export to spreadsheet
3. Sort by “Good Inventory” column (ascending)
4. Compare against your reorder thresholds
5. Create reorder list for items below threshold

For Fast-Moving SKU Analysis:

1. Go to Reports → Inventory Forecast Report
2. Select 30-day or 90-day period
3. Export and calculate shipments per SKU
4. Identify top 20% of SKUs (80/20 rule)
5. Ensure adequate stock for high-velocity items

For Aging Inventory Review:

1. Go to Reports → Inventory Spreadsheet
2. Review SKUs with inventory but no recent activity
3. Cross-reference with Transaction Spreadsheet
4. Identify slow-moving inventory for potential action:
• Promotional pricing
• Bundling with popular items
• Removal from warehouse
• Liquidation or disposal

For Seasonal Planning:

1. Run Transaction Spreadsheet for previous year
2. Identify seasonal peaks and valleys
3. Plan inventory buildup 4-6 weeks before peak
4. Adjust reorder points seasonally

5. Advanced Notification and Monitoring Tips

Email Management Best Practices

✓ Ensure your primary inventory manager and your EFS account representative are both listed in Manage Email
✓ Set up dedicated email addresses for different notification types
✓ Create email rules to auto-sort EFS notifications into folders
✓ Review notifications daily during high-volume periods
✓ Archive receiving reports for historical reference

Inventory Accuracy Maintenance

Regular Reconciliation:

• Compare FCP inventory counts with internal records weekly
• Investigate discrepancies immediately via Zendesk ticket
• Document any patterns of shrinkage or errors
• Request cycle count audits if needed

Hurt Bin Management:

• Review hurt or damaged bin reports monthly (sent 15th of each month)
• Identify products needing replacement or removal, dead stock
• Submit disposition instructions within 30 days
• Monitor hurt bin fees to avoid accumulation

Integration Inventory Sync:

• If using integrations (Shopify, Magento, Amazon, etc.), verify inventory syncing is active
• Ensure online store reflects accurate available quantities
• Check sync frequency settings (hourly/daily recommended)
• Monitor for sync errors in Quick Links → IS2 Portal
• Review Item List for sync status per SKU

Proactive Monitoring Strategies

Weekly Tasks:

• Review current inventory levels against reorder points
• Check for low-stock SKUs approaching threshold
• Verify receiving notifications for expected shipments
• Monitor best-selling SKUs for adequate stock

Monthly Tasks:

• Run comprehensive inventory reports
• Analyze sales velocity trends
• Review hurt bin newsletter (sent 15th)
• Evaluate slow-moving inventory
• Reconcile FCP counts with accounting records

Quarterly Tasks:

• Audit reorder points and adjust for seasonality
• Review supplier lead times and update if changed
• Assess safety stock levels based on recent patterns
• Conduct aging inventory analysis
• Meet with Account Manager for long-term planning

6. Preventing Stockouts

Stockouts lead to lost sales, disappointed customers, and potential integration errors. Follow these strategies to maintain optimal inventory levels.

Proactive Ordering Strategies

Place Restock Orders Early:

• Order when you reach reorder point (not when out of stock)
• Account for weekends and holidays in lead time
• Add buffer for customs delays (international suppliers)
• Consider supplier minimums when calculating order quantities

Track Supplier Performance:

• Document actual lead times vs. quoted times
• Note quality issues or short shipments
• Maintain backup suppliers for critical items
• Build relationships for rush order capabilities

Manage Seasonal Fluctuations:

• Increase safety stock before peak seasons
• Order 6-8 weeks before anticipated demand spikes
• Review previous year’s sales data
• Coordinate with suppliers for production capacity

Optimize Order Quantities:

• Balance between holding costs and order frequency
• Consider volume discounts from suppliers
• Use Economic Order Quantity (EOQ) formula for high-value items
• Account for EFS storage fees in total cost analysis

Handling Out-of-Stock Situations

When Stockouts Occur:

1. Immediately notify customers with backorder orders
2. Check with supplier for expedited delivery options
3. Consider air freight for critical items
4. Review similar SKUs that might substitute
5. Update reorder point to prevent future stockouts

Backorder Management in FCP:

• Orders automatically enter Backorder status (Red Box) when inventory insufficient
• View backorder orders: Orders → Search/Edit Orders (filter by status)
• Backorders ship automatically when inventory received
• Option to split backorders: Ship available items, backorder rest
• Refer to guide: “How Can I Ship Items In Stock on a Backorder?”

Preventing Overstock

While stockouts are costly, overstocking also creates problems:

Issues with Overstocking:

• Increased storage fees
• Tied-up capital that could be used elsewhere
• Risk of product obsolescence
• Potential for damage during long-term storage

Right-Size Your Inventory:

• Don’t order excessive safety stock
• Monitor inventory turn rates (aim for 4-8 turns per year)
• Use data-driven reorder points, not gut feeling
• Consider drop-shipping for slow-moving items
• Bundle slow-movers to clear excess stock

7. Long-Term Inventory Monitoring

Effective long-term inventory management prevents waste, reduces costs, and improves cash flow.

EFS Cycle Count and Audit Services

Regular Cycle Counts:

• EFS performs QA at the time of receipt and when an item is picked for an order
• Maintains 95-97% inventory accuracy rate
• Results automatically update in FCP
• Discrepancies investigated through receiving logs, shipment records, and location history

Client-Requested Audits:

• Available upon request via Support Team
• Fees may apply for audits outside standard schedules
• Submit request through Zendesk ticket system
• Allow 3-5 business days for completion
• Useful for reconciliation or dispute resolution

Refer to: “Cycle Counts & Audits” guide for detailed audit procedures

Quarterly Inventory Reviews

Large SKU Catalog Management:

• Review aging reports quarterly
• Identify SKUs with 6+ months no activity
• Coordinate with Account Manager for inventory strategies
• Consider:
• Promotional campaigns to move slow inventory
• Bundling with popular items
• Return to self for alternative sales channels
• Liquidation or disposal

SKU Rationalization:

• Delete discontinued SKUs to avoid bin fees
• Consolidate similar SKUs to reduce complexity
• Remove seasonal items post-season

Abandoned Goods Policy

Abandoned Goods Policy:

• Upon termination of services, Client has 10 days to remove goods
• After 10 days: reasonable storage fees apply
• After 90 days: EFS acquires warehouseman’s lien and may liquidate
• All outstanding invoices must be paid before goods released

Refer to: MSA Section 2 for complete abandoned goods procedures

Inventory Cost Analysis

Track Total Cost of Inventory:

Calculate monthly carrying costs:

Total Monthly Cost = (Storage Fees + Bin Fees + Long-Term Fees) ÷ Total Units

Optimize for Profitability:

• Compare carrying costs to product margins
• Identify SKUs with poor cost-to-profit ratios
• Make data-driven decisions about which products to continue stocking
• Use this data to negotiate better terms with suppliers

Annual Inventory Review:

• Calculate total annual storage costs
• Assess inventory turns per SKU
• Identify opportunities for improvement
• Set goals for inventory optimization

8. Integration Inventory Sync

For clients using shopping cart integrations, inventory syncing ensures your online store shows accurate stock levels.

Setting Up Inventory Sync

Supported Integrations:

• Shopify, Magento, WooCommerce
• BigCommerce, Amazon, eBay
• Squarespace, Wix, Etsy
• And many more (see Integration & Apps Section)

Activation Steps:

1. Navigate to Quick Links → IS2 Portal
2. Click on your integration
3. Enable “Item Sync” toggle
4. Set sync frequency (hourly/daily recommended)
5. Select sync schedule

Refer to: Integration-specific guides in Integration Support Master Guide

Managing Synced Items

Item List / Cart Items Page:

1. Go to your integration configuration
2. Click “Cart Items” or “WMS Items”
3. Click “Refresh Cart Items” to pull products from cart
4. Activate individual SKUs for syncing:
• Click box button next to SKU
• Status changes to “ACTIVE”
• Inventory will now sync for this item

SKU Mapping:

• Map cart SKUs to different FCP SKUs
• Useful for bundles or kits
• One cart item can map to multiple FCP items
• Create mappings in Cart Items page
• Select the +SKU Map to the right of the SKU
• Add the WMS items to the Cart SKU, enter the WMS item in the search field, select the + to add the quantity

Troubleshooting Sync Issues

Common Problems:

• Items not syncing: Check if SKU is activated in Item List
• Wrong quantities: Verify SKU mapping is correct
• Sync delays: Review sync schedule frequency
• Integration errors: Check XML Error notifications in email

Monitoring Sync Health:

• Review sync logs in integration settings
• Check for error notifications
• Verify inventory matches between FCP and cart
• Test with low-impact items first

Refer to: “Item List / Inventory Sync” standalone guide for detailed instructions

9. Best Practices Summary

Daily Tasks

✓ Check email notifications for receiving, damages, returns
✓ Monitor orders to identify fast-moving SKUs
✓ Review low-stock items approaching reorder point

Weekly Tasks

✓ Compare inventory levels against reorder points
✓ Place restock orders for items at threshold
✓ Verify expected shipments are in transit
✓ Check for integration sync errors

Monthly Tasks

✓ Run Inventory Activity Report for trend analysis
✓ Review hurt bin newsletter (sent 15th)
✓ Submit disposition instructions for damaged inventory
✓ Reconcile FCP inventory with internal records
✓ Analyze slow-moving inventory for action

Quarterly Tasks

✓ Conduct aging inventory review
✓ Audit and adjust reorder points
✓ Review supplier lead times and performance
✓ Delete discontinued or inactive SKUs
✓ Meet with Account Manager for strategic planning
✓ Calculate inventory carrying costs and turns

10. Tools and Resources Quick Reference

FCP Navigation for Inventory Management

Reorder Point Calculator

Use this quick calculator for estimating reorder points:

Step 1: Average Daily Sales = Total Sales ÷ Days in Period

Step 2: Lead Time Days = Supplier Time + Transit Time + Receiving Time

Step 3: Safety Stock = Average Daily Sales × Safety Days

Step 4: Reorder Point = (Average Daily Sales × Lead Time Days) + Safety Stock

Example:

• 300 units sold in 30 days = 10 units/day average
• Supplier lead time = 10 days
• Transit time = 3 days
• EFS receiving = 2 days
• Safety stock = 5 days (50 units)
• Reorder Point = (10 × 15) + 50 = 200 units

Support Resources

Contact Methods:

• Zendesk Ticket System: Client Info → Support (in FCP)
• Email: [email protected]
• Phone: 1-866-922-6783 (press 2 for Customer Service)
• Account Manager: Direct contact info in welcome materials

Related Guides:

• Storage Rules & Fees
• Receiving Guide
• How Can I Ship Items In Stock on a Backorder?
• Item List / Inventory Sync Guide
• Integration Support Master Guide
• FCP Quick Reference Guide

Next Steps and Additional Resources

Continue to: Cycle Counts & Audits Guide
That guide explains how EFS verifies inventory accuracy, resolves discrepancies, and provides clients with detailed count reports.