Replenishment
Quick answer
Automatically refilling picking locations from reserve stock to prevent stockouts during picking.
Key takeaways
- What replenishment is
- Internal replenishment
- External replenishment
What replenishment is
Replenishment has two meanings: (1) internal - moving goods from the reserve (bulk) area into picking locations when they drop below a threshold; (2) external - placing purchase orders to suppliers to replenish overall stock.
Internal replenishment
Picking locations have limited capacity. When stock in a location drops below the minimum, the WMS generates a replenishment task from bulk so pickers never run out.
External replenishment
Based on the reorder point = consumption over lead time + safety stock. A good system triggers orders automatically, matching real demand with available stock.
How CRMconnect helps
Combining sales (OMS, marketplace, retail EDI) with WMS stock, CRMconnect computes per-SKU reorder thresholds, generates internal replenishment tasks and proposes purchase orders - simultaneously cutting stockouts and overstock.
Real-world example
A distributor with 3,500 SKUs had stockouts at picking locations during peak hours. With automatic replenishment in CRMconnect WMS on dynamic thresholds, picking stockouts disappeared, and purchase orders are placed on real demand, not intuition.
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Frequently asked
Difference between internal and external replenishment?+
Internal = moving from reserve to picking locations in the same warehouse. External = a purchase order to a supplier to replenish total stock. Both prevent stockouts, at different levels.
How is the reorder point calculated?+
Reorder point = average consumption over the lead time + safety stock. When available stock reaches this level, a new order is placed.
Can replenishment be automated?+
Yes. A WMS/OMS auto-triggers internal replenishment tasks and proposes purchase orders when stock hits the threshold, based on real demand synced from all channels.
Where CRMconnect fits
Related terms
Safety stock
Extra buffer inventory held to prevent stockouts caused by demand or supply variability.
LogisticsWMS (Warehouse Management System)
The system orchestrating physical warehouse operations: receiving, putaway, picking, packing, shipping.
OperationsBackorder
Order accepted but not deliverable from current stock - fulfilled at a known future date.
LogisticsSlotting
Strategically assigning products to warehouse locations based on rotation, size and affinity to minimise picking effort.