How many times have you scrambled to find salmon at 6 PM on a Friday night? Many hospitality entrepreneurs order by feel or when the cooler looks empty, which leads to overstock or stockouts. Smart reorder points based on supplier data solve this problem completely.
What are reorder points and why are they important?
A reorder point is the inventory level at which you automatically order new stock. It prevents you from running out of ingredients, but also from buying too much and tying up money in stock that spoils.
💡 Example:
You use 5 kg of salmon per week. Your supplier delivers within 2 days. Your reorder point is then:
- Weekly consumption: 5 kg
- Daily consumption: 0.7 kg
- Delivery time: 2 days
- Safety margin: 1 extra day
Reorder point: 3 × 0.7 = 2.1 kg salmon
What supplier data do you need?
To automatically adjust reorder points, collect this data from your suppliers:
- Delivery times per product: Fresh meat often daily, dry goods 2-3 days
- Minimum order quantities: Some products only available per box/crate
- Delivery reliability: How often does the delivery arrive on time?
- Seasonal fluctuations: Are products sometimes unavailable?
- Price fluctuations: When are products cheaper to stock up?
⚠️ Note:
Ask your supplier for average delivery times, not their best. A single delay can shut down your business if you calculate too tightly.
Calculate your current consumption per ingredient
For automatic reorder points, you need to know exactly how much you consume. Use your sales data and recipes:
💡 Example steak:
You sell an average of 40 steaks per week at 250 grams each:
- Weekly consumption: 40 × 0.25 = 10 kg
- Daily consumption: 10 ÷ 7 = 1.4 kg
- Peak day (Saturday): 1.4 × 1.8 = 2.5 kg
Calculate with peak consumption for safety
Look at seasonal patterns. Do you sell 30% more fish in summer? Then your reorder point should be 30% higher in June-August than in January.
Set reorder points per supplier
Each supplier has different delivery times and reliability. Adjust your reorder points accordingly:
- Reliable supplier (95% on time): Reorder point = (delivery time + 1 day) × daily consumption
- Unreliable supplier (80% on time): Reorder point = (delivery time + 2-3 days) × daily consumption
- Seasonal products: Extra safety margin during peak periods
- Perishable goods: Lower reorder points, order more frequently
💡 Example different suppliers:
Same product, different suppliers:
- Greengrocer (reliable, daily): reorder point 1.5 days stock
- Wholesaler (less reliable, 2 days): reorder point 4 days stock
- Online supplier (uncertain, 3-5 days): reorder point 7 days stock
Automate with digital systems
Manually tracking reorder points takes too much time. Most restaurants I've worked with make a mistake that costs them EUR 200-400 per month: they rely on visual checks instead of data-driven reorder points. Use systems that link your sales data to inventory:
- POS integration: Automatically deduct sold portions
- Recipe linking: Know how much ingredients you use per sold dish
- Supplier alerts: Automatic order suggestions when reorder point is reached
- Seasonal adjustment: Higher reorder points during busy periods
A food cost calculator can link your sales data to recipes and automatically alert you when your reorder point approaches, without you having to track manually.
⚠️ Note:
No system is 100% automatic. You still need to check if inventory levels are correct and adjust when you change your menu.
Monitor and adjust
Reorder points aren't fixed values. Check monthly:
- Stockouts: Happening more often? Increase your reorder point
- Spoilage: Too much thrown away? Lower your reorder point or order more frequently
- Seasonal changes: Adjust reorder points for summer/winter
- Menu changes: New dishes mean different consumption
- Supplier changes: Different delivery times require different reorder points
A good reorder point ensures you run out of an ingredient a maximum of 1-2 times per year, and waste minimal food due to spoilage.
How do you set reorder points? (step by step)
Collect supplier data
Note from each supplier the average delivery time, minimum order quantity, and delivery reliability. Ask for their worst performance, not their best.
Calculate your daily consumption
Add up how much of each ingredient you use per week (via recipes × sales). Divide by 7 for daily consumption, but calculate with your busiest day for safety.
Set reorder point per product
Reorder point = (delivery time + safety margin) × daily consumption. For reliable suppliers: +1 day. For unreliable: +2-3 days safety margin.
✨ Pro tip
Track your top 5 ingredients for 2 weeks using actual delivery data, not supplier promises. Once these reorder points work perfectly, you've solved 80% of your stockout problems.
Calculate this yourself?
In the KitchenNmbrs app you can do this in just a few clicks. 7 days free, no credit card.
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Frequently asked questions
How often should I adjust my reorder points?
Check monthly whether your reorder points are still correct. With seasonal changes, menu changes, or new suppliers, you should adjust immediately.
What if my supplier suddenly delivers later?
Immediately increase your reorder point by the difference in delivery time. Better to have too much stock than to run out on a busy evening.
Can I set different reorder points per season?
Yes, that's even recommended. In summer you might use 40% more fish, so your reorder point should also be 40% higher.
What do I do with products that spoil quickly?
Use lower reorder points and order more frequently. For fresh fish, for example, order a small amount every 2 days instead of a lot weekly.
How do I prevent tying up too much money in inventory?
Calculate the turnover rate of your inventory. If you have more than 2 weeks of stock for a product, your reorder points are probably too high.
Should I use the same safety margin for all suppliers?
No, adjust your safety margin based on supplier reliability. Unreliable suppliers need 2-3 days extra buffer, while consistent suppliers only need 1 day.
📚 Sources consulted
- EU Verordening 852/2004 — Levensmiddelenhygiëne (2004) — Official source
- EU Verordening 853/2004 — Hygiënevoorschriften voor levensmiddelen van dierlijke oorsprong (2004) — Official source
- EU Verordening 1169/2011 — Voedselinformatie aan consumenten (2011) — Official source
- NVWA — Hygiënecode voor de horeca (2024) — Official source
- NVWA — Allergenen in voedsel (2024) — Official source
- Codex Alimentarius — International Food Standards (2024) — Official source
- FSA — Safer food, better business (HACCP) (2024) — Official source
- BVL — Lebensmittelhygiene (HACCP) (2024) — Official source
- Warenwetbesluit Bereiding en behandeling van levensmiddelen (2024) — Official source
- WHO — Foodborne diseases estimates (2024) — Official source
Food Standards Agency (FSA) — https://www.food.gov.uk
The HACCP standards shown in this application are for informational purposes only. KitchenNmbrs does not guarantee that displayed values are current or complete. Always consult the FSA or your local authority for the latest regulations.
Written by
Jeffrey Smit
Founder & CEO of KitchenNmbrs
Jeffrey Smit built KitchenNmbrs from 8 years of hands-on experience as kitchen manager at 1NUL8 Group in Rotterdam. His mission: give every restaurant owner control over food cost.
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