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Minimum stock and automatic ordering — how to never run out of material
How a warehouse system tracks minimum stock and proposes ordering itself, before the material actually runs out.
Procurement "by feel", without a system tracking consumption, usually leads to one of two extremes: piling up excess stock that traps money and space, or an unpleasant surprise when a key material physically runs out exactly when it is needed most. The solution is a simple rule the system tracks automatically: a minimum stock level per item.
How the mechanism concretely works
For each item you define a threshold (minimum quantity) below which the system automatically sends a warning to the responsible person, or even proposes the exact quantity to order based on historical consumption and already-open orders waiting for that material.
The system takes into account not only the current shelf quantity but also material already reserved for existing production orders — distinguishing between "physically have" and "actually available for new orders".
The result in practice
Less capital needlessly trapped in oversized stock sitting on the shelf for months before use.
Production and sales rarely or never wait for material that should have been ordered in time — procurement reacts to the system's signal before the shortage becomes an urgent problem delaying deliveries to customers.
Less procurement time spent manually monitoring stock levels for dozens or hundreds of items — the system tracks it automatically and warns only when action is actually needed.
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Nikola Cerić
Founder & CEO, Manage IT
More than 10 years of software development experience — in his own company and in major IT companies across the Balkans.