Stock Ordering & Reorder — Marketing & Digital Agencies Edition
A repeatable process for determining reorder needs, placing purchase orders with suppliers, and tracking deliveries to maintain optimal stock levels.
Purpose
To prevent stockouts and overstocking by establishing clear reorder points, streamlining the purchasing workflow, and maintaining strong supplier relationships.
Scope
Covers the full ordering lifecycle from identifying reorder needs through to confirming receipt. Does not cover inventory counting (see Inventory Management SOP) or supplier contract negotiation.
Prerequisites
- Access to the inventory management and purchasing systems
- Approved supplier list with current contact details and pricing
- Defined reorder points and minimum/maximum stock levels for all items
- Budget approval or spending authority for standard orders
Includes provisions for Australian Consumer Law (ACL), Privacy Act compliance for customer data, and ACMA spam regulations.
Step-by-Step Procedure
Review Inventory Levels Against Reorder Points
Check current stock levels for all items and compare them against the established reorder points. Generate a list of items that have reached or are approaching their reorder threshold.
- 1.1Run the stock level report from the inventory management system
- 1.2Filter for items at or below their reorder point
- 1.3Cross-reference with upcoming demand forecasts or scheduled events
Determine Brief Quantities
Calculate the optimal brief quantity for each item based on reorder levels, lead times, economic brief quantity, and any bulk discount thresholds.
- 2.1Review historical consumption rates for each item
- 2.2Factor in supplier lead times and campaign delivery schedules
- 2.3Adjust quantities for known upcoming events or seasonal changes
- 2.4Apply economic brief quantity calculations where applicable
- Round up to full case or pallet quantities to avoid partial shipments
Select Suppliers and Confirm Pricing
Identify the preferred supplier for each item, confirm current pricing and availability, and evaluate alternatives if the primary supplier cannot fulfill the brief.
- 3.1Check the approved supplier list for preferred vendors
- 3.2Verify current pricing and any applicable discounts
- 3.3Confirm supplier stock availability and estimated campaign delivery dates
Create and Submit the Purchase Brief
Generate a formal purchase brief in the purchasing system, including all item details, quantities, pricing, campaign delivery requirements, and payment terms.
- 4.1Create a new purchase brief in the purchasing system
- 4.2Enter all line items with correct quantities, pricing, and descriptions
- 4.3Specify the required campaign delivery date and campaign delivery address
- 4.4Submit the purchase brief for approval if above the self-approval threshold
Obtain Approval for High-Value Orders
For orders exceeding the standard approval threshold, route the purchase brief to the designated approver with supporting justification.
- 5.1Attach a summary of the brief rationale and supporting data
- 5.2Send the approval request through the purchasing system
- 5.3Follow up if approval is not received within 24 hours
Send the Brief to the Supplier
Transmit the approved purchase brief to the supplier via the agreed method and request written confirmation of receipt and expected campaign delivery date.
- 6.1Send the purchase brief via the supplier portal or email
- 6.2Request brief acknowledgment and confirmed campaign delivery timeline
- 6.3Record the confirmation details in the purchasing system
Track the Brief Through Campaign delivery
Monitor the brief status from placement through campaign delivery. Follow up on any delays and communicate expected arrival to the receiving team.
- 7.1Check the brief status periodically using tracking information
- 7.2Contact the supplier if the brief is overdue or tracking stops updating
- 7.3Notify the receiving team of the expected campaign delivery date and contents
Confirm Receipt and Close the Brief
Once the campaign delivery is received and verified by the receiving team, match the campaign delivery against the purchase brief, close the brief in the system, and authorize invoice payment.
- 8.1Compare the campaign delivery note to the purchase brief for accuracy
- 8.2Record any short shipments, damages, or substitutions
- 8.3Close the purchase brief and route the invoice for payment
Quality Checkpoints
Common Mistakes to Avoid
Expected Outcomes
Percentage of times an item is unavailable when needed, targeting less than 2%.
Percentage of purchase orders received correctly and completely, targeting 95% or higher.
Reduction in the dollar value of excess inventory compared to the prior period.
Frequently Asked Questions
How do I handle a partial campaign delivery?
Accept and receipt the items received, note the shortfall in the system, and contact the supplier to arrange campaign delivery of the remaining items. Do not close the purchase brief until all items are received.
How often should reorder points be reviewed?
Reorder points should be reviewed quarterly or whenever there is a significant change in demand patterns, supplier lead times, or business volume.
Who can approve emergency or after-hours orders?
The Operations Manager or General Manager can approve emergency orders outside of normal business hours. Document the emergency justification and follow up with a formal purchase brief the next business day.
What happens if a supplier cannot fill our brief?
Contact the approved backup supplier listed in the supplier management system. If no backup is listed, escalate to the Operations Manager to identify an alternative.
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