The reorder clears demand coverage, cash runway, and lead-time confidence.
Workflow for inventory decisions
Approve reorders when stock risk and cash risk both work.
Clear Margins connects reorder point, lead time, safety stock, promotion demand, contribution margin, and cash runway so advisors can explain whether a purchase order should be approved.
Safety stockCash tied upStockout risk
Decision first
The workflow answers whether the reorder protects revenue without trapping too much cash.
Inventory decisions can fail in two directions: stock out and lose sales, or over-order and weaken runway. The workflow keeps both risks visible before approval.
The purchase order can proceed with capped units, supplier confirmation, or staged reorder timing.
The reorder ties up too much cash or demand evidence is too weak.
Lead time, daily demand, safety stock, COGS, or cash balance needs review.
Operating loop
From client ask to monitored decision record.
The workflow keeps assumptions, cases, approval status, guardrails, and monitoring tied to one version instead of scattering them across spreadsheets, notes, and slide decks.
- 01Capture stock position
Record inventory on hand, daily demand, supplier lead time, safety buffer, and unit cost.
- 02Add campaign demand
Fold promo or ad scale demand into the reorder model instead of treating inventory separately.
- 03Check cash runway
Compare purchase order cash outflow against the approved runway floor.
- 04Set reorder rules
Define reorder trigger, unit cap, review date, and missing-data requirement.
- 05Monitor actual velocity
Track whether units move as expected after approval and reopen the decision when velocity drifts.
Scenario cases
Best, base, and worst cases stay attached to the recommendation.
Clients can approve a decision faster when the upside, operating case, and failure case are visible in the same report.
Best caseStock supports campaign
Inventory covers demand without excess cash tied up.
Base caseStage the reorder
The team approves a smaller PO while supplier lead time is verified.
Worst caseCash drag
Demand underperforms, inventory sits, and runway weakens.
Policy checks
The report explains the math before asking for approval.
Reorder pointAverage daily demand times lead time plus safety stock.Campaign demand overlayExpected demand lift from promo or ad scale applied to daily sales velocity.Cash committedPurchase order size times unit landed cost, compared with available cash.Runway after reorderCash balance after PO divided by monthly burn and expected contribution.
Client portal
The stakeholder sees a clear recommendation, not a finance cockpit.
The client-facing view focuses on the decision, assumptions, impact, advisor note, guardrails, and approval actions. The advisor keeps the deeper modeling context inside the workspace.
Inventory Reorder Risk WorkflowClient action needed
- Reorder being evaluated
- Demand and lead-time assumptions
- Stockout risk
- Cash runway impact
- Best, base, worst cases
- Advisor note
- Approved reorder guardrails
- Approval status
ApproveRequest changesReject
Use case boundary
Use this before the spreadsheet becomes the meeting.
Use this before committing inventory cash. It does not replace supplier negotiation, warehouse planning, or demand planning software.
FAQ
Questions advisors ask before using this workflow.
What is inventory reorder risk?
It is the combined risk of stocking out, over-ordering, or tying up cash when demand, lead time, and campaign assumptions move.
Why should reorder decisions include runway?
A reorder can protect revenue but still weaken cash if the purchase order is too large or demand arrives later than expected.
Can this work with manual inventory data?
Yes. Manual actuals and CSV uploads work first; live connectors can be added later for Scale workflows.
See the deliverable