How to Set Up Reorder Points and Barcode Scanning in Your Inventory System

Amara Nwosu
By Amara Nwosu

Product Manager, Inventory & Operations

20263 min read
How to Set Up Reorder Points and Barcode Scanning in Your Inventory System

TL;DR

Setting up reorder points means configuring the stock level at which each item triggers replenishment, and pairing it with barcode scanning so counts stay accurate across stock-in, stock-out, and cycle counts.

Start with clean, structured product data

Reorder points only work if your product catalog is trustworthy. Give every product a code, category, unit of measure, and cost. Group items into categories so thresholds and reporting behave consistently.

In Retten Work you can also attach variants and serial numbers, which matters when the same base product ships in different pack sizes.

Choosing reorder points and order quantities

A reorder point is the stock level at which you should reorder before running out. A simple formula is: (average daily usage × lead time in days) + safety stock. Set your reorder quantity based on ordering cost, storage space, and supplier minimums.

  • Reorder point = daily demand × supplier lead time + safety stock.
  • Use 30–60 days of historical sales to estimate daily demand.
  • Review thresholds monthly as sales patterns change.
  • Let the system trigger stock requests automatically below the threshold.

Barcode scanning for fast, accurate counts

Manual data entry is the biggest source of count errors. With barcode support, staff scan items on stock-in, stock-out, and during cycle counts. Scanning removes typing mistakes and makes a full stocktake take hours instead of days.

Low-stock alerts that drive action

Thresholds are only useful when someone acts on them. Configure low-stock notifications so the right person is alerted, and auto-generate a draft stock request that an approver can review and approve in one step.

Frequently asked questions

How do I calculate a reorder point?

Reorder point = (average daily demand × supplier lead time in days) + safety stock, reviewed monthly against actual sales.

What is safety stock?

Extra inventory held above expected demand to absorb lead-time delays or demand spikes.

Does barcode scanning improve accuracy?

Yes. Scanning eliminates typing errors at stock-in, stock-out, and cycle counts, cutting counting time from days to hours.

Should low-stock alerts create POs automatically?

Retten Work generates a draft stock request that an approver reviews — automation without losing control.

How often should I review reorder points?

Monthly is a good cadence, and whenever a product's sales pattern or supplier lead time changes.