Step 01
Thresholds configured per item
Min, max and reorder thresholds per item-warehouse. Configurable individually or by item category.
Inventory Management | Reorder Points & Auto-PO
POs drafted before the shelf is empty.
Min, max and reorder thresholds per item. Lead time and safety stock from your vendor performance history. Auto-PO drafts against approved vendors when stock crosses the threshold. Procurement reviews and releases. The shelf never runs dry.
How it works
From threshold to PO, on the same day.
Step 02
Math driven by vendor history
Lead time pulled from the vendor performance master. Safety stock computed against demand variability. Reorder quantity rounds to the vendor MOQ.
Step 03
Auto-PO at threshold
When stock crosses the reorder threshold, a draft PO generates against the approved vendor with the right item, quantity and price-list rate.
Step 04
Procurement releases
The buyer reviews the draft, adjusts if needed, and releases. PO emails out, GRN expected, the loop continues.
What the system does
Capability, input, output.
| Capability | Input | Output |
|---|---|---|
| Threshold engine | Min, max, reorder per item-warehouse | Stock-vs-threshold status |
| Lead time intelligence | Vendor performance history | Per-vendor lead time average and variance |
| Safety stock math | Demand history + lead time variance | Safety stock per item |
| Auto-PO drafting | Threshold crossed + approved vendor | Draft PO with quantity, rate, MOQ |
| MOQ rounding | Vendor MOQ + reorder quantity | Quantity rounded up to MOQ |
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Threshold engine
- Input
- Min, max, reorder per item-warehouse
- Output
- Stock-vs-threshold status
-
Lead time intelligence
- Input
- Vendor performance history
- Output
- Per-vendor lead time average and variance
-
Safety stock math
- Input
- Demand history + lead time variance
- Output
- Safety stock per item
-
Auto-PO drafting
- Input
- Threshold crossed + approved vendor
- Output
- Draft PO with quantity, rate, MOQ
-
MOQ rounding
- Input
- Vendor MOQ + reorder quantity
- Output
- Quantity rounded up to MOQ
Compliance + integrations
POs that respect approved vendors only.
Auto-PO drafts against the approved-vendor list for the item. Vendors with expired KYC, suspended GSTIN or MSME 43B(h) breach are excluded automatically. Procurement governance is applied at the draft, not at the release.
Regulations we work within
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Vendor master KYC validation
GSTIN status and MSME flag re-checked at draft.
-
Approved-vendor list compliance
Only approved vendors surface in the auto-PO draft.
Connects to
- Procurement module Native PO drafting
- Vendor master Live KYC and approved-vendor list
Reorder Points & Auto-PO FAQ
What buyers ask.
How is safety stock calculated?
Safety stock = z × σ × √L, where z is the service-level z-score (default 95%), σ is the standard deviation of demand, and L is the lead time. The CFO can set the service level per item category. Items with no demand history default to a configured floor.
What if the approved vendor has a stockout?
The auto-PO falls through to the next-ranked approved vendor for the item. Where no approved vendor can fulfil, the draft surfaces for procurement override with reason capture.
Can we exclude an item from auto-PO during a phase-out?
Yes. Items can be flagged "no-auto-reorder" with an end date. The threshold alert still fires; procurement decides manually. This handles end-of-life items and seasonal lines.
Bring 90 days of stock movements. See the threshold map.
Connect one warehouse, free. The threshold engine analyses your demand history and surfaces the items that would have triggered auto-PO last quarter, with the cash impact.