One of the biggest problems facing product-based businesses in retail, wholesale distribution and manufacturing is how best to forecast inventory needs. Having too much inventory drains cash flow, while having too little results in lost sales, production delays and affects customer service.
Ian Benoliel, Founder and CEO of NumberCruncher, Inc., told Insightful Accountant,"Small business financial and e-commerce systems do not adequately address the problem," Mr. Benoliel went on to say,"Business owners and purchasing managers spend hours combining reports and running formulas using programs like Excel. There had to be a better way, and that's why our team developed ReorderPoint.com."
ReorderPoint.com is a purchasing tool that offers a systematic approach to forecasting inventory needs, which, when applied consistently, proves to result in optimized inventory levels.
The reorder point is the level of inventory (quantity on-hand) that indicates the need to issue a purchase order to your vendor (supplier). In general, the reorder point is the lead time demand (i.e. sales and other usage) plus safety stock. The reorder point should result in the receipt of inventory arriving just as the last of the on-hand inventory is used up, with a margin of error called “Safety Stock.” Safety Stock accounts for vendor delays and/or demand spikes.
Reorderpoint info graph
ReorderPoint.com lets the business owner and purchasing manager quickly determine what inventory to order, when to order it and how much needs to be ordered. By integrating the application with QuickBooks, ReorderPoint will read and factor historical usage, such as invoices, sales receipts and build assembly transactions, as well as current inventory levels to determine the proper reorder point and help your business run smoothly and effectively.
Once installed and integrated with QuickBooks, ReorderPoint.com uses statistical methods to identify trends, seasonality and special orders. This process is called multiple 'model fit.' ReorderPoint uses the models to forecast demand and the proper reorder point. The software then compares the reorder point to the inventory levels and determine the reorder status. An email is sent to alert the users that it's time to reorder inventory. This process is automatic and runs continuously on a schedule defined by the user during the initial ReorderPoint setup.
After the user receives their alert email, they can log back into ReorderPoint.com and view the alert page. The alert page is where users can analyze reorder status and reorder points as well as suggested order quantities and dates. While on the alert page, users have the ability to click on a product's SKU to have a pop up window appear with the products metrics and charts. This pop up window shows key product metrics, such as days on hand and a 12 month trailing usage chart, so users can visualize their trends. Users can also export this data to Excel.
Another benefit of ReorderPoint, is the ability to run lead time calculations. The lead time is the number of days from the issuance of a purchase order to the date of the receipt. For example, if the purchase order is dated September 1st, and you receive the inventory on September 15th, then the lead time is 14 days. Depending on your integration choice, ReorderPoint will analyze your purchasing history and calculate the lead time for you. Otherwise you can import the lead time into ReorderPoint.com, manually via CSV.
With ReorderPoint.com, business owners and purchasing managers no longer have to spend tireless hours gathering all the necessary information that's required to make informed purchasing decisions. When companies place orders late, it can be costly and crippling to the business, but ReorderPoint's alert system is the only safeguard companies need to remind them that it's time to act.
ReorderPoint.com isn't just for the multi-million dollar manufacturing companies. The application was created and will benefit any business that issues repetitive purchase orders for products, such as distributors, retailers, E-commerce, hospitality, medical, government and wholesalers.
To help keep the cost of this program down, ReorderPoint was introduced in 2014, as a cloud based application, that is either accessible by visiting ReorderPoint.com or current QuickBooks users can access the application at anytime from the Intuit App Center. The download is only 1 kilobyte and setup only takes a few moments, so you can have ReorderPoint up and running in a matter of minutes.
ReorderPoint uses a monthly pay-as-you-go subscription model of only $50 USD per month. All new subscribers receive a 14 day, no commitment, free trial to check out the application and see just how beneficial ReorderPoint could be for their company.
The application currently integrates seamlessly with QuickBooks Online, QuickBooks Desktop and QuickBooks Point-of-Sale. Once integrated with QuickBooks, Reorderpoint will read your inventory items list, invoices, sales receipts, credit memos and purchase order history. Although the application reads your data from QuickBooks, ReorderPoint does not write any data in QuickBooks. Reorderpoint is hosted on Microsoft Azure, which offers a powerful, secure and scalable platform for continual and future growth.
ReorderPoint.com is a service provided by south Florida based company, NumberCruncher.com, Inc. Since 1999, NumberCruncher has been a provider of inventory and order management software to small and medium sized businesses that utilizes QuickBooks. NumberCruncher was the first company to invest in QuickBooks SDK from Intuit and develop an inventory add-on application for QuickBooks, called All Orders. Manufacturers, wholesalers and distributors across the globe rely on NumberCruncher to manage their inventory activities. As you can tell from our prior article, we like All Order a lot, and now we like ReorderPoint.com too.
The NumberCruncher/ReorderPoint team draws from over 30 years of experience that covers a wide range of manufacturing management, wholesale/distribution, technology and accounting expertise. They not only provide the software but the implementation, training and ongoing support to help our customers achieve maximum results from our solutions and the peace of mind to sleep at night, knowing their companies accounting software is working properly and accurately around the clock.
To ensure that ReorderPoint was the best forecast and optimize inventory levels application on the market from launch, NumberCruncher consulted with renowned statistician Dr. Dragan Radulovic. NumberCruncher along with Dr. Radulovic, developed ReorderPoint.com to prove figuring out your companies' reorder point, doesn't require a statistics degree. Dr. Radulovic is the founder and chief operations officer at Dragon Delta Analysis, located in Boca Raton, Florida. Dragon Delta Analysis specializes in data mining and applied mathematical techniques commonly encountered in modern business environments. Dr. Radulovic obtained his PhD in Mathematical Statistics at UConn (1999), he then joined the Department of Statistics at Yale (2001-2003) and later joined the Department of Mathematical Sciences at Florida Atlantic University (2003-present). Dr. Radulovic is the author of numerous research papers and several U.S. Patents involving 'Systems and Method for Analyzing Data Streams'. His research includes Molecular Biology/Bioinformatics, Probability Theory and Mathematical Statistics.
See the company's website for more information, or to sign-up for a FREE 14-day, no commitment, trial at Reorderpoint.com. If you are interested in NumberCruncher's All Orders Inventory software review our article, or visit their website at numbercruncher.com.