The accuracy of Inventory Planner’s forecasting and replenishment recommendations largely relies on the data it can access. If the data in the system is inaccurate or incomplete, its output will be too.

An overdue order is a stock order with an expected delivery date in the past that still contains items waiting to be received.

As Inventory Planner uses incoming orders as part of its replenishment recommendations, any order which hasn’t yet been received impacts the calculation. This is particularly relevant if you’re due to run out of inventory before your next order arrives.

The sales demand is independent of your purchase schedule. Because overdue orders are expected to come in imminently, the stock forecast predicts they’ll be received the next day, and therefore that they may sell out more quickly. Therefore, your replenishment recommendation may be increased and Inventory Planner may suggest you place purchase orders in larger quantities or more frequently.

Making sure your expected due dates are correct and clearing out any overdue orders where appropriate means Inventory Planner can offer better suggestions on when to replenish, and how much stock to order.

Cost prices are a fundamental part of Inventory Planner’s ecosystem, affecting several metrics that are helpful for decision-making.

For example, GMROI (Gross Margin Return on Investment) uses the cost price to determine the return on investment. If no cost price is entered, or if the cost price is incorrect, the GMROI may look better than it is, providing a misleading picture of a product’s profitability.

Furthermore, missing or inaccurate cost prices can lead to delays or errors with your daily operations. For example, Inventory Planner can automatically create purchase orders. When choosing a vendor, it can decide which to select based on who offers the lowest cost price for a variant. If cost prices are wrong or missing, it may select a vendor who doesn’t offer you the best deal.