How to Set Up Reordering Levels and Notifications in Luminous

Properly managing stock levels is critical for ensuring smooth operations. Follow this guide to set up reordering levels, low stock alerts, and email notifications in Luminous.

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Step 1: Define Stock Thresholds for Each SKU

1. Navigate to the SKU settings within Luminous.
2. Set the following fields for each SKU:
   • Reorder Level:
     • Example: Set this to 250 to trigger reordering when stock falls to this level.
   • Low Stock Alert Quantity:
     • Set this slightly above the reorder level (e.g., 300) to allow time for creating purchase orders.
   • Minimum Stock:
     
     • Many users leave this at 0, but you can set it to another value (e.g., 10) to flag critical stock shortages. You can then filter the Stocks grid for anything below minimum stock.

Step 2: Update Thresholds in Bulk (Optional)

• Use the Master SKU Import feature for bulk updates:
  1. During the initial product import, include these fields.
  2. Alternatively, update thresholds in bulk later via the import tool.

Step 3: Configure Email Notifications

1. Access Notification Settings:
   • Click your name in the bottom-left corner of Luminous.
   • Select System Settings.
2. Set Notification Preferences:
   • Go to the Notifications tab.
   • Configure the following alerts:
     • Low Quantity Products Notification:
       • Select staff members to receive notifications when inventory falls below the low stock threshold.
       • Optionally, include custom text like, “Stock is running low. Consider placing a PO.”
     • Out of Stock Notifications:
       
       • Assign staff to receive warnings when inventory hits the minimum stock level.

Key Takeaways

• Each SKU has three thresholds: Low Stock Alert Quantity, Reorder Level and Minimum Stock.
• Set the low stock alert a little above the reorder level, so you get a heads-up with time to write the PO.
• Minimum stock is often left at 0, but setting it gives you an out-of-stock warning and a Stocks grid filter.
• All three fields can be set one by one or in bulk with the Master SKU Import.
• Choose who receives low stock and out-of-stock emails in System Settings > Notifications.

How the Three Thresholds Work Together

Using the example values from the video, here's what happens as stock for one SKU sells down:

1. 300 units (Low Stock Alert Quantity): your team gets a low stock email. This is the early warning to start planning the reorder.
2. 250 units (Reorder Level): it's time to place the purchase order.
3. 10 units (Minimum Stock): staff get an out-of-stock warning, and the SKU shows up when you filter the Stocks grid below minimum stock.

How to Choose Your Reorder Level

A common starting point is to cover what you'll sell while waiting for new stock to arrive, plus a buffer:

Reorder level = average daily sales × supplier lead time (days) + safety stock

For example, if a SKU sells 10 units a day and your supplier takes 14 days to deliver, you'll sell about 140 units while you wait. Add 50 units of safety stock and the reorder level is 190. Revisit these numbers when sales trends or lead times change, especially before peak seasons.

Common Questions

What's the difference between the low stock alert and the reorder level? The low stock alert is the early heads-up. The reorder level is the point where you place the PO. Setting the alert slightly higher gives you time to act.

Can I set thresholds for all my SKUs at once? Yes. These fields are included in the Master SKU Import, so you can set them during your first import or update them in bulk later. See How to Import and Create SKUs in Luminous.

Who receives the notifications? Whoever you select in System Settings > Notifications, for both low quantity and out-of-stock warnings.

Related videos: How to Send a Purchase Order (PO) to Your Supplier and MRP Forecasting.

By following these steps, you’ll have an efficient reordering system in place, ensuring you’re alerted before critical stock shortages occur.