Inventory Management Without the Chaos
Build a simple inventory system that prevents stockouts while avoiding over-ordering waste.
The Problem
Most artisans operate in two extremes: stockouts or massive over-ordering.
The Three-Level System
1. Minimum Stock Level
Lowest amount before production stops. Example: 2 spools = 1 week.
2. Reorder Point
When to order. Example: Minimum + weekly usage = 5 spools.
3. Maximum Stock Level
Max on hand. Example: 6 weeks supply = 18 spools.
Three Tracking Methods
Spreadsheet
Google Sheets tracker. Update weekly.
Color-Coded Labels
Green/Yellow/Red. Visual cues work great.
Automated Software
TrueCraft tracks and alerts automatically.
Key Inventory Principles
Safety Stock Levels
Keep 1-2 weeks of unexpected demand as safety stock. For most artisans, 2 weeks of buffer is safe. This prevents production stops during supply delays without excessive overstock.
Handle Seasonal Swings
Increase your reorder points before busy seasons. Reduce maximum stock levels during slow periods. This balances working capital efficiency with production continuity.
Bulk Buying Decision Framework
Only buy bulk when: (1) discount is over 15%, (2) you have cash on hand, (3) storage space exists, and (4) material won't expire. Don't sacrifice cash flow or storage for a mediocre discount.
Deep Dive: The Reorder Point Formula
Simple formula to prevent the "I forgot to order" stockout:
Reorder Point = (Daily Usage × Lead Time Days) + Safety Stock
Example: Thread spools. You use 2 spools/day. Supplier takes 14 days to deliver. Safety stock: 2 spools/day × 7 days = 14 spools buffer.
Reorder Point = (2 × 14) + 14 = 42 spools. When you hit 42 spools on hand, order immediately.
Why? If you order at 42 and use 2/day: In 14 days (delivery time), you'll have used 28 spools, leaving 14 (your safety stock). New order arrives just before you'd run out.
Real Case Study: Rachel's Pottery Stockout Crisis
The Problem
Rachel: Ceramic artist. Tracked finished pots in Google Sheets. Didn't track clay inventory. January: received 20 orders (unusual volume). Made pots frantically. Ran out of clay mid-week. Couldn't fulfill 8 orders. Rush-ordered clay ($340 expedited shipping). Delivered late. Lost $1,200 in revenue + refunds + angry customers.
The Solution
Calculated reorder point for clay: 15 lbs/week usage, 21 days lead time = 45 lbs reorder point. Set phone reminder. When inventory dropped to 45 lbs, order 100 lbs automatically.
The Results
Next 12 months: Zero stockouts. Built safety buffer organically. Avoided $4,800 in lost revenue. Now tracks 8 materials with same system. Added $2,400/month in revenue (could confidently accept rush orders).
Comparison: Three Inventory Approaches
Edge Cases
TrueCraft: Automatic Inventory Management
- Automatic Usage Tracking: Log production, system updates inventory. No manual entry.
- Smart Reorder Alerts: System calculates reorder point per material. Notifies you at threshold via email/Slack.
- Low-Stock Dashboard: Visual alert: "Clay: 42/100 lbs (RED). Order immediately. Glaze: 60/80 oz (GREEN)."
- Supplier Lead-Time Management: Log typical lead times. System factors into reorder calculations.
- Historical Trending: See usage patterns. Seasonal adjustments become automatic.
Example: Pottery studio with 6 materials. Manual tracking: 2 hrs/week managing spreadsheets. Stockouts: 2-3x/year ($600 lost each). With TrueCraft: 5 min/week (mostly passive alerts). Zero stockouts. Time saved: 100 hrs/year ($2,500 value). ROI: 5x in first year.
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