Minimum stock levels: never run out of goods (or cash tied up in them)
Out of stock, you lose sales; overstocked, you lose cash. How minimum levels and alerts keep the right balance — and how to spot dead stock that just sits on the shelf.
Stock is a constant battle on two fronts. If you run out, the customer goes to a competitor and may not come back. If you hold too much, your cash sits locked on the shelf instead of working. Minimum stock levels are a simple tool that helps you hit the right balance, without guessing.
How minimum levels work
For each item you set a minimum stock level — the line you don’t want to fall below. When the count drops under it, the system alerts you that it’s time to reorder, before you hit zero. So you order in time and just the right amount, instead of in a panic or by the pile.
The other side: too much stock
A shortage is obvious, but a surplus quietly eats cash. Goods sitting for months are locked money, and sometimes they spoil or go out of fashion. That’s why it matters to spot dead stock — what doesn’t sell — and not reorder it. A good report shows you this in black and white. Dead stock is money you’ve already spent but haven’t earned back — and won’t, while it sits there.
How not to track it by hand
Tracking minimums for hundreds of items in your head is impossible. Magaza tracks minimum levels and alerts you when to reorder, and through reports it also reveals dead stock — so you keep the right balance: never out of goods, nor cash locked up needlessly.
Key takeaways
- Out of stock you lose sales; overstocked you lose locked-up cash
- Minimum level + alert = order in time and just the right amount
- Spot dead stock and don’t reorder it
Frequently asked questions
Start from how much of an item sells before a new delivery arrives, plus a small buffer. The system helps you tune it over time from your sales.
Items that don’t sell for a long time and just take up space and cash. A profitability and turnover report shows them clearly, so you know what to clear out.
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