Running out of an item can happen for several reasons, and it doesn't always indicate a problem with Inventory Ally. In most cases, the cause is related to ordering decisions, item configuration, inventory counts, or changes in usage. Before reporting a stockout, review the areas below. In many cases, you'll identify the cause and prevent the same issue from happening again.
What to review
Review the order
The most common cause of a stockout is ordering less than Inventory Ally recommended. Open the item's menu and review its Order History and Recommendations. Hover over the graph to compare the quantity that was ordered with the quantity Inventory Ally recommended. If the item wasn't ordered up to the recommended maximum quantity, it may run out sooner than expected.
Confirm units of measurement
Review both the Ordering Unit and Counting Unit to ensure they accurately reflect how the item is purchased and counted. Incorrect units of measurement can affect Inventory Ally's calculations and lead to inaccurate recommendations.
Verify recent counts
Review your most recent inventory counts to confirm they were entered accurately.
Inventory Ally uses physical counts to calculate future recommendations. Incorrect counts can affect projected inventory levels and reorder recommendations.
Review sales data
If the item uses sales data, confirm that it is mapped correctly. Open the PIMS Mapping Tool and review the item's usage history to verify that data is flowing correctly. Without reliable sales data, Inventory Ally relies more heavily on inventory counts and order history when calculating recommendations.
Consider changes in usage
Sudden increases in demand can cause inventory to deplete faster than expected.
If your hospital's usage has changed significantly, an administrator can increase Safety Stock by adding additional coverage days. This allows Inventory Ally to maintain additional inventory for that item.
Important: Increasing Safety Stock raises the minimum reorder point and increases the amount of inventory kept on hand. Use this setting carefully.
Still need help?
If you've reviewed each area and still believe the stockout requires further investigation, submit the item to the Want List and enable Report Stockout. This notifies the Inventory Ally team so they can investigate the issue and follow up with you.
Key takeaways
Stockouts are most commonly caused by:
ordering below the recommended quantity
incorrect units of measurement
inaccurate inventory counts
missing or incorrect sales data
unexpected increases in usage
Reviewing each of these areas will identify the cause of most stockouts and help reduce the likelihood of future stockouts.