When Should You Use Reorder Levels and What Happens If You Don’t?

When Should You Use Reorder Levels and What Happens If You Don’t?


Info

Reorder levels in Zoho Inventory act as your automated low-stock alert system—and skipping them can cost you sales, time, and peace of mind.

What is a Reorder Level?
It’s a set threshold for each item that tells the system:
"Hey, you’re running low—time to restock!"

You set:

  • Reorder Point (e.g., 10 units)

  • Preferred Vendor

  • Reorder Quantity (e.g., 100 units)

When Should You Use Them?

  • If you sell fast-moving goods

  • If stockouts lead to customer loss or operational downtime

  • If your procurement cycle has a long lead time

What Happens When You Don’t Use Them?

  • You rely on manual stock checks—prone to errors

  • You risk stockouts and delayed deliveries

  • Purchasing becomes reactive instead of proactive

Benefits of Enabling Reorder Alerts:

  • Get automatic notifications when stock hits the threshold

  • Instantly create a purchase order from the alert

  • Ensure inventory never falls below safe levels

Where to Set It Up:

  • Go to Items > Select Item > Edit

  • Enter the Reorder Point, Reorder Quantity, and Preferred Vendor

Pro Tip: Pair this with Inventory Valuation Reports to optimize your working capital and avoid overstocking.