Quick Summary: Understand how supplier constraints affect replenishment logic and identify which rules are handled automatically versus those requiring manual planner intervention.
Why Supplier Constraints Matter
Suppliers often impose conditions to make shipping and production more efficient. These constraints ensure that orders are practical and cost-effective for both parties.
The app applies these rules to help you:
Generate orders that comply with supplier requirements.
Avoid rework or rejected orders when exporting to your ERP.
Maintain a balance between service levels, working capital, and supplier expectations.
⚠️ Watchout: Supplier constraints can inflate order recommendations, making them appear higher than the system’s pure demand-based need. Always interpret large recommendations in the context of the supplier constraints before adjusting inputs.
Types of Supplier Constraints
Minimum Order Quantity (MOQ)
Some suppliers require a minimum number of units per line or per order.
The app automatically rounds order recommendations up to the nearest MOQ multiple so the supplier’s minimum quantity is satisfied.
Example:
If demand suggests 850 units but the MOQ is 1,000, the system will recommend 1,000 units.
Order Multiples (Pack Sizes)
Suppliers may require items to be ordered in pack or carton multiples.
The app rounds recommendations up to the nearest full pack size to comply with supplier packaging rules.
Example:
If a product is supplied in packs of 12 and the recommendation is 25 units, Netstock rounds this up to 36 units (three packs).
Order Review Frequencies
Some suppliers only accept orders on fixed intervals, such as weekly, fortnightly, or monthly.
The app does not automatically align the replenishment cycle with these supplier review frequencies. Planners must manually align order review periods with supplier schedules to ensure orders are raised at the correct time.
Example:
If a supplier accepts orders only once per month, planners must ensure that the replenishment logic and review periods are set to cover the full month until the next scheduled review.
➜ For more on this topic, read: Order Frequency (Review Period) Explained
Minimum Order Value (MOV)
The app does not cater for Minimum Order Value. If a supplier requires a minimum monetary value per order, this must be managed manually.
Planners can achieve this by:
Adding top-up items to meet the supplier’s MOV threshold.
Grouping multiple supplier orders to reach the required value.
➜ For more on this topic, read: How To: Use Top-Up Orders
What the App Incorporates Automatically
The app automatically applies the following when generating Recommended Order Quantities (ROQ):
Minimum Order Quantity (MOQ).
Order Multiples (pack sizes).
➜ For more on this topic, read: The Recommended Order Quantity (ROQ) Calculation Explained
What Planners Manage Manually
Some constraints are not handled automatically and must be considered manually when placing orders:
Minimum Order Value (MOV)
The app does not cater for MOV. If a supplier requires a minimum order value, planners should manage this manually using top-ups or grouped supplier orders.
➜ For more on this topic, read: How To: Use Top-Up Orders
Review Frequency
Planners can align review periods to supplier schedules or internal business processes to ensure orders are raised at the appropriate times.
➜ For more on this topic, read: Order Frequency (Review Period) Explained
Example Scenario
If the replenishment logic recommends 800 units, but the supplier specifies:
Minimum Order Quantity (MOQ) = 1,000 units
Order Multiple (OM) = 120
The system will recommend 1,080 units (nine packs) to comply with both constraints.
If the supplier also has an MOV of $10,000, this must be managed manually using a top-up to reach the required value.
⚠️ Watchouts
Excess stock risk: Supplier constraints can inflate stock levels, particularly for slow-moving items.
💡 Tips
Review supplier terms regularly: Update MOQ and pack sizes whenever supplier requirements change.
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