2026-09-28 · ~1 min read
On-demand inventory strategy: flexible ≠ zero planning
How to set safety stock and reorder points under POD/on-demand—so you avoid both dead stock and chronic stockouts.
Zero inventory is a direction, not a dogma
On-demand reduces wrong stock. Treating it as never holding anything invites stockouts when ads spike or logistics slip.
Practical goal: cut error inventory; protect known winners with strategic shallow stock.
Multi-category needs per-category policies—replenishment cycles differ.
Three stock types
Learning stock (tests), flexible safety stock (validated SKUs covering lead time), scale stock (stable demand only).
Grade SKUs (test/watch/core) with max days-of-cover and triggers.
Festive gifts vs evergreen accessories need different curves.
Simple reorder math
Reorder point ≈ daily sales × (make+ship days) × volatility factor. Review weekly.
If insert orders are reliable, factor can be lower; in peak crunch, raise it or pre-book capacity.
Operating with Flecustom
Use catalog and order data to identify core SKUs, confirm lead times, keep tests shallow, and write explicit quick-turn rules for cores.
Prove the policy on 1–2 categories before cloning across the catalog.