Seasonal fluctuations or trends can sometimes make it difficult to determine your inventory levels accurately. With Billbee, you can have your stock coverage calculated automatically. This lets you know how long your current stock will last – and helps you reorder items in time.
Let Billbee calculate your stock coverage
With dynamic inventory calculation – also known as stock coverage calculation – Billbee automatically determines how many items you should reorder. This offers you many advantages:
- Optimized inventory: Your goods are in stock exactly when you need them – without unnecessary overstock.
- Reduced capital commitment: You only order the quantity needed for your desired stock coverage and replenishment time. This means less money tied up in your warehouse.
- Lower storage costs: Smaller inventory levels mean less space required, lower storage costs, and less risk of goods sitting in stock for too long.
Automatic calculation of minimum stock levels
The minimum stock level shows you the minimum amount of stock that should be available in your warehouseso that you don't run out of stock during the replenishment period.
Billbee calculates this minimum stock level based on the quantities of an item sold within a period of your choice and a replenishment time you have defined.
If your available quantity falls below this minimum stock level, Billbee automatically triggers a Warning off
Automatic calculation of target stock levels
The target stock level shows you what your ideal stock level should be.
Billbee calculates the target stock level based on the quantity of the item you have sold within a specific period. The replenishment time and your desired stock coverage are also included in the calculation to determine the ideal stock quantity.
Automate your inventory planning with Billbee & VentoryOne
Proactive inventory planning helps you respond in time to increasing demand, seasonal fluctuations, and longer lead times – so you never go out of stock again and avoid unnecessary overstock.
While Billbee centrally manages your inventory, orders, and sales channels, VentoryOne complements the stock coverage calculation with sales forecasts and precise reordering. This way, you not only see how long your stock will last, but you can also plan in advance when and how much stock is needed.
Frequently Asked Questions about Reach Calculation
What is the inventory range?
Inventory reach shows you how long your current stock is expected to last based on your current sales rate. It is usually expressed in days and helps you reorder in time before an item goes out of stock.
What is the optimal inventory range?
There is no one-size-fits-all answer for optimal inventory coverage. It depends on factors such as your lead time, demand, supplier reliability, and the shelf life of your products. As a rule of thumb, your stock should last at least until a replenishment shipment arrives—plus a small safety buffer to account for unexpected delays or spikes in demand.
Can I also automate my reorders with Billbee?
Billbee is the ideal solution if you want to easily calculate your stock coverage based on your sales history, lead times, and your desired coverage period. If you would like to fully automate your reordering process, we recommend using VentoryOne. This inventory management tool generates automated sales forecasts, taking into account seasonal fluctuations and past out-of-stock periods. Since VentoryOne is part of the comrce Softwarehub, just like Billbee, you can use VentoryOne for free once you reach 200 orders in Billbee.
How do I calculate the inventory range?
In theory, you can calculate your stock coverage manually.
The classic formula is:
Stock coverage = Inventory level / average consumption per period
To calculate it in days, you add the length of the period:
Stock coverage in days = Inventory level / average consumption per period / number of days in the period
Example: If you sell an average of 10 items per week and have 50 in stock, your inventory is expected to last for five weeks—or about 35 days.
Since manual calculation is not only time-consuming but also prone to errors, most merchants find it worthwhile to use Billbee's automated calculation. The system automatically calculates the minimum and target stock levels based on your sales for the period you select.
Who benefits from automated stock coverage calculation?
Automated calculation is particularly beneficial for online retailers with large inventories, fluctuating demand, or multiple sales channels. Even if you place regular reorders or have been tracking your stock levels manually in spreadsheets, automation can save you significant time and help prevent errors.