AI-Powered Tool

Inventory Optimization Tool — Free AI-Powered Stock Analysis

Enter your SKU data and get AI-generated reorder points, safety stock levels, dead stock detection, and cash flow impact — backed by curated industry benchmarks.

✅ Optimal Reorder Points 🛡️ Safety Stock Formula 💀 Dead Stock Detection 💰 Cash Flow Impact 📅 Reorder Calendar 📊 Industry Benchmarks

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Up to 5 SKUs free · No login required

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📊 Inventory Health Dashboard

Portfolio Status Breakdown
Current vs Optimized Carrying Cost ($/mo)
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Per-SKU Optimization Dashboard

SKU Status Current Stock Safety Stock Reorder Point EOQ Days of Supply Monthly Carry Inventory Value
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Dead Stock Detection

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Cash Flow Impact Analysis

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Reorder Calendar — Next 90 Days

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Industry Benchmark Comparison

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AI-Powered Optimization Analysis

✦ AI

📊 Benchmark Context

🔗 Supplier Risk

🗺️ Optimization Roadmap

☐ Automated Monitoring Checklist

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    Supplier Risk Assessment

    Concerned about supplier reliability? Check your supplier risk scores first.

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    Safety Stock Calculator

    Quick safety stock calculation for 1-5 SKUs — no AI, instant results.

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    Dead Stock Calculator

    Quantify the full financial cost of your slow-moving inventory.

    Inventory Optimization for Small Distributors: What You Actually Need to Know

    Most inventory management advice is written for Fortune 500 companies with dedicated supply chain teams. If you're running a distribution operation with 5-100 employees, here's what actually matters.

    The core problem isn't usually that distributors don't care about inventory — it's that the tools are too expensive or complex. Spreadsheets break down past 50 SKUs. ERP systems cost $50K+ to implement. So most small distributors rely on gut feel and end up with two problems simultaneously: stockouts on their best sellers and dead stock piling up in the corner.

    The Three Numbers Every Distributor Needs

    Reorder Point (ROP): The stock level at which you need to place an order. This accounts for how long your supplier takes to deliver (lead time) plus a buffer for variability. If you always wait until you're almost out, you're gambling that your supplier delivers on time every time — and they won't.

    Safety Stock: Your buffer against the unexpected — demand spikes, supplier delays, quality rejections. The right safety stock level depends on how reliable your supplier is and how variable your customer demand is. A supplier that delivers within 2 days of the promised date needs far less safety stock than one that can range from 10-30 days late.

    Economic Order Quantity (EOQ): The batch size that minimizes your total ordering plus carrying costs. Order too small and you're constantly reordering (high ordering costs). Order too big and you're tying up capital in slow-moving stock (high carrying costs). EOQ finds the sweet spot.

    Dead Stock Is a Working Capital Problem

    Dead stock — inventory sitting for 90+ days — isn't just a space problem. It's capital locked up that can't be deployed elsewhere. For a small distributor with $500K in inventory, having 8% in dead stock means $40K that could instead fund marketing, equipment, or a new supplier relationship. Identify it fast and liquidate aggressively — even at 30-40% discount, recovering 60 cents on the dollar beats losing 100 cents to write-offs.

    Frequently Asked Questions

    What is inventory optimization?
    Inventory optimization is the process of determining the right quantity of each product to stock, when to reorder, and how much safety buffer to maintain — balancing service level goals against carrying costs and capital efficiency. The goal is to prevent both stockouts and overstock, freeing working capital while maintaining customer fill rates.
    How do you calculate safety stock?
    Safety stock = Z × √(lead_time × σ_demand² + avg_demand² × σ_lead_time²). Z is the service level factor (1.65 for 95%), σ_demand is the standard deviation of daily demand, and σ_lead_time accounts for supplier variability. Higher service levels and less reliable suppliers require more safety stock.
    What is dead stock and how do I reduce it?
    Dead stock is inventory that hasn't moved in 90+ days or has demand so low it would take months to sell. To reduce it: list on B2B liquidation platforms, bundle with fast-moving products, offer bulk discounts to existing customers, return to supplier if contractually possible, or write off if all else fails. The key is acting quickly — the longer inventory sits, the harder it is to sell at any price.
    What is EOQ (Economic Order Quantity)?
    EOQ is the optimal order quantity that minimizes total inventory costs — balancing ordering costs (labor, freight per order) against carrying costs (storage, capital, insurance). Formula: EOQ = √(2 × annual_demand × order_cost / annual_carrying_cost_per_unit). Ordering in EOQ batches reduces both overbuying and the per-unit cost of frequent small orders.
    What is a reorder point?
    The reorder point (ROP) is the inventory level at which you should place a new order to avoid stockout before the next delivery arrives. ROP = (average daily demand × supplier lead time in days) + safety stock. When stock drops to or below the ROP, it's time to reorder. This tool calculates your ROP for each SKU automatically.