Inventory Reorder Workflow for Manufacturing

# Inventory Reorder Workflow - Manufacturing

## Purpose
Implement to prevent stockouts, reduce excess inventory, and automate the manual parts of your supply chain.

## When to Use
An automated inventory monitoring and reorder workflow that triggers purchase orders when stock levels fall below defined thresholds.

## Instructions
1. Review the template below and familiarise yourself with the structure
2. Replace all [bracketed placeholders] with your manufacturing business details
3. Customise the tone and formatting to match your brand
4. Save in your preferred tool (Shopify or Xero)

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## Inventory Reorder Workflow

### Trigger
Stock level for any SKU falls to or below the defined reorder point (minimum stock threshold), detected by automated monitoring or manual stock check.

### Steps

**Step 1: Monitor Stock Levels** (Owner: Automated via Zapier) - Continuous
Zapier monitors Shopify inventory levels against the reorder points defined in the product database. When a SKU reaches its reorder point, an automatic alert is sent to the Inventory Manager via Slack with: product name, SKU, current stock, reorder point, and reorder quantity.
- Tool: Zapier + Shopify + Slack
- Output: Low-stock alert triggered

**Step 2: Verify Stock and Demand** (Owner: Inventory Manager) - Within 4 hours of alert
Confirm the stock level in Shopify is accurate (check for pending orders, returns in transit, or recent adjustments). Review recent sales velocity to confirm the reorder quantity is still appropriate. Check for any upcoming promotions or seasonal factors that may require a larger order.
- Tool: Shopify
- Output: Stock verified, reorder quantity confirmed or adjusted

> Decision Point: If the product is being discontinued or demand has dropped significantly, update the reorder point to zero and notify the team rather than placing a new order. If demand has increased, adjust the reorder quantity upward.

**Step 3: Check Supplier Availability** (Owner: Inventory Manager) - Within 1 business day
Contact the preferred supplier to confirm product availability, current pricing, and lead time. If the preferred supplier cannot fulfil the order, check the secondary supplier. Update the supplier record with any pricing or lead time changes.
- Tool: Email/Phone + Supplier database
- Output: Supplier availability confirmed, pricing verified

**Step 4: Create Purchase Order** (Owner: Inventory Manager) - Within 1 business day
Generate a purchase order in Xero with: supplier details, product descriptions, quantities, agreed unit prices, GST, delivery address, and expected delivery date. Reference the reorder alert as the trigger. Submit for approval if the order exceeds the pre-approved threshold.
- Tool: Xero
- Output: Purchase order created

**Step 5: Approve Purchase Order** (Owner: Operations Manager or Director) - Within 1 business day
For orders exceeding $5,000, review and approve the purchase order. Verify the quantities align with demand forecasts and the pricing is consistent with supplier agreements. Approve via Slack or Xero.
- Tool: Xero + Slack
- Output: Purchase order approved

**Step 6: Send to Supplier** (Owner: Inventory Manager) - Within 4 hours of approval
Send the approved purchase order to the supplier via email. Confirm receipt and expected dispatch date. Update the Shopify product record with the expected restock date for customer-facing messaging.
- Tool: Email + Shopify
- Output: PO sent to supplier, restock date set

**Step 7: Track Shipment** (Owner: Inventory Manager) - Ongoing until delivery
Monitor the order status with the supplier. For orders with long lead times, request progress updates at the midpoint. If delays arise, communicate to the team and update the expected restock date in Shopify.
- Tool: Email + Shopify + Slack
- Output: Shipment tracked, delays communicated

**Step 8: Receive and Inspect Goods** (Owner: Warehouse Team) - Upon delivery
Receive the delivery and inspect against the purchase order: correct products, quantities, and condition. Note any discrepancies or damage. Sign the delivery docket and notify the Inventory Manager.
- Tool: Manual inspection + Slack
- Output: Goods received, inspection completed

> Decision Point: If there are discrepancies (short delivery, damaged goods, wrong items), photograph the issues and notify the Inventory Manager immediately. Lodge a claim with the supplier before updating stock levels.

**Step 9: Update Inventory** (Owner: Warehouse Team) - Within 4 hours of receiving
Update stock levels in Shopify for all received items. Process the goods into the correct warehouse locations. If applicable, update lot numbers or expiry dates. Remove any customer-facing "low stock" messaging.
- Tool: Shopify
- Output: Inventory updated, products available for sale

**Step 10: Process Supplier Invoice** (Owner: Finance) - Within 2 business days
Match the supplier invoice to the purchase order and delivery note (three-way match). Verify quantities, pricing, and GST. Code to the correct GL account in Xero and process for payment per the supplier's terms.
- Tool: Xero
- Output: Invoice matched, coded, and approved for payment

**Step 11: Update Reorder Parameters** (Owner: Inventory Manager) - Monthly review
Review the reorder points and quantities for all products based on the latest sales data, lead times, and seasonal trends. Adjust thresholds to optimise stock levels and minimise carrying costs.
- Tool: Shopify + Notion (analysis)
- Output: Reorder parameters updated based on current data

### Completion Criteria
- [ ] Low-stock alert triggered and verified
- [ ] Supplier availability and pricing confirmed
- [ ] Purchase order created, approved, and sent
- [ ] Goods received and inspected against PO
- [ ] Inventory levels updated in Shopify
- [ ] Supplier invoice matched and processed
- [ ] Reorder parameters reviewed and current

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**Complexity:** advanced | **Setup time:** 25 minutes | **Tools:** Shopify, Xero, Zapier

Note: This template has been tailored for manufacturing businesses in Australia. Adjust terminology and compliance references to match your specific context.