In this article

Restocking Inventory: Comprehensive Guide for 2024

2 minutes

In this article, we explain exactly what inventory restocking is and why it matters. We also share our simple 4-step process to help you do it efficiently. Read on to learn more.

restocking inventory

What Does Restocking Inventory Mean?

Restocking inventory is the process of replenishing products or goods in a store or warehouse to maintain an optimal stock level. This is a way to ensure that product availability aligns with demand and operational needs.

Example: HypothetiTech Inc., a computer retailer, establishes that they will reorder 200 units of a specific laptop model when their stock levels drop to just 50 units.

Why Is Inventory Restocking Important?

Inventory restocking is an essential component of inventory management for many reasons. We list some of the most common reasons below:

Avoid Stockouts: Running out of stock can lead to lost sales and disappointed customers.

Optimal Capital Utilization: Maintaining the right stock levels ensures capital isn't tied up in excess inventory.

Maintain Brand Reputation: Consistent availability of products reinforces reliability in the eyes of customers.

Enhanced Sales Opportunities: Adequate stock levels mean businesses can capitalize on unexpected surges in demand.

Supply Chain Efficiency: Regular restocking can lead to smoother operations and better relations with suppliers.

inventory restocking

4-Step Process to Restocking Inventory Efficiently

Efficiently restocking inventory requires a systematic approach and understanding of your sales patterns. To get started, simply follow our simple 4-step process here: 

Step 1: Demand Forecasting

Predict how much stock you'll need based on sales data and trends.

Example: If EcoShirt Co. sold an average of 500 organic shirts per month last summer, they might forecast a need for 550 shirts this summer accounting for a 10% growth.

Step 2: Monitor Stock Levels 

Keep an eye on current inventory levels to know when to reorder.

Example: GreenGadget Store reorders their best-selling phone charger when their stock level reaches 100 units, based on their sales velocity.

Step 3: Evaluate Supplier Performance

Choose reliable suppliers to ensure timely restocking.

Example: NovelReads Bookstore switched to a new supplier after their previous one consistently delivered late, affecting their restocking efficiency.

Step 4: Implement Inventory Management Software

Utilize software to automate and enhance the restocking process.

Example: HydroHealth Bottling uses software that automatically places an order for new water bottles when stock levels reach a predetermined threshold.

restock inventory


Let’s consider a hypothetical scenario: FreshFruit Plaza, a popular grocery store, has noticed an increase in demand for organic apples. 

To ensure they don't run out of stock, they decided to follow our restocking process step by step: 

Step 1: Demand Forecasting

FreshFruit Plaza examines past sales data and market trends to project future sales. With an anticipated 20% surge, they estimate a weekly requirement of 1,200 organic apples to meet customer demand.

Step 2: Monitor Stock Levels

The store establishes a reorder point, deciding that once their organic apple stock dwindles to 300 units, it's time to replenish. This threshold ensures they have enough stock on hand while awaiting the next order.

Step 3: Evaluate Supplier Performance 

Recognizing the importance of timely restocking, FreshFruit Plaza opts for a supplier known for punctuality and reliability. Their choice is based on past experiences, reviews, and the supplier's ability to meet demand consistently.

Step 4: Implement Inventory Management Software

To automate and streamline their restocking process, FreshFruit Plaza uses specialized software. This program detects when apple stock nears the 300-unit mark and autonomously places a reorder, minimizing manual monitoring and potential human error.

Efficiently restocking inventory is crucial for businesses to thrive and meet customer demands. We hope this article has given you a better understanding of what inventory restocking means and how to do it efficiently. 

If you enjoyed this article, you might also like our article on inventory stockout or our article on safety stock inventory.

Get Google Sheets productivity and automation tips delivered straight to your inbox
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
We'll email you 1-3 times a week — and never share your information.
Get your copy of our free Google Sheets automation guide!
  • 27 pages of Google Sheets tips and tricks to save time
  • Covers pivot tables and other advanced topics
  • 100% free

Work less, automate more!

Use Lido to connect your spreadsheets to email, Slack, calendars, and more to automate data transfers and eliminate manual copying and pasting. View all use cases ->