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Traffic Light Warning System Explained
We use a simple traffic light system to inform you of your inventory health at a glance.
- High risk (Red) = Products where the rate of sales indicates that you have already missed the opportunity to stay in stock. If these products aren’t replenished fast then expect a stock outage.
- Danger Zone (Orange) = Products in the danger zone have fallen into your predefined ‘buffer zone’. Even though we have an inbuilt Safety Stock mechanism, some prefer to set this themselves. You can do so in the settings.
- Safe Zone (Green) = Products in the safe zone have more units held in your inventory than your automatically calculated reorder point.
The safe zone is the optimum place to be at with all your products to avoid losing sales to going out of stock.