Skubana gives users the ability to automatically generate POs based on reorder rules that have been configured. These reorder rules are calculations of when and how much to order for stock replenishment based on previous sales historical data.

These rules are set based on data for individual skus, and controlled within the Inventory Module. To edit the rules, click on a specific Master SKU to open a prompt in a new window. All inventory rules for this SKU will be listed under the first tab “Auto-Reorder Rules”.

The section on the right shows how the calculations are defined. The section on the left is where to enter information based on selling needs and history. The metrics used include the following:

  • Sales Velocity: Average number of daily orders for sku
  • Days in Stock: Desired days this product must be in stock
  • Lead Time: Days it takes for the product to be delivered from vendor
  • Reorder Buffer: Safety days to order before lead time. This can include general buffer, or known extra steps like FBA prep time.
  • Forecasted Growth: Expected % change in sales velocity for this product, based on seasonality, marketing, or other data outside of Skubana. 

Auto purchase orders will be created based on the reorder rules that are entered. Though Skubana prepopulates every account with default values,  it is important to adjust these values to reflect specific business needs in order to fully utilize the Auto-PO feature properly.

To see an overview of generated P.O values for a specific SKU, select the appropriate vendor and warehouse from the dropdown menus and click “Calculate P.O Estimates”

This will show :

  • Sales Velocity
  • Minimum Level of Inventory
  • Reorder Quantity
  • Reorder Date
  • Runout Date

The reorder quantity is calculated using the formula:

= Sales Velocity x (Days In Stock + Lead Time + Reorder Buffer) x (1 + Forecasted Growth) – Incoming Units

This is the quantity that will be issued on the purchase order created by Skubana. 

The minimum level is calculated using the formula: 

= Sales Velocity x (Lead Time + Reorder Buffer) x (1 + Forecasted Growth)

Remember, minimum inventory level is used to help determine allocated stock quantities across all sales channels in order to prevent over-selling. 

In order for Skubana to automatically generate purchase orders, the Auto P.O function is turned on. To check whether or not you have this function enabled, head to the Settings module and click on the Company Info tab in the right hand side menu. Under the “Purchase Order Settings” section mark the check box next to “Auto PO Generation?”

Whenever a new PO is generated by Skubana, it will appear in the “Awaiting Authorization” status in the PO module and indicate Skubana in the “created by” column. 

It will stay here until an authorized user comes in and physically authorizes the PO, and only at that point will it be sent to a vendor for fulfillment. 

Auto purchase orders run once daily, and account for incoming expected inventory.

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