Par Levels: Forecasting and Managing Inventory
We've recently revamped our Par Levels Report to provide a more robust view of your inventory and offer strategic insights into managing orders and intake. For more information on the benefits and utility of using par levels, check out our recent blog post here.
What is a Par Level?
A Par Level is the minimum quantity of a product that is in stock. This is a helpful tool for best selling or high selling products to ensure they remain in stock at all times. You can set par levels for individual products in Flowhub to track and manage your inventory.
How to Set Up a Par Level
To set a par level for a product, we'll navigate to Manage > Company Management. Select a product and choose Edit.
You'll see the Default Par Level field on the left-hand side. If your dispensary has multiple locations, you can set up your par levels for each location.
*You can also use the Bulk Edit Products feature to set par levels for multiple products at a time.
Once you've set your par levels, you can generate a Par Levels custom report to view your current inventory. To do this, navigate to Reports New > Click the + button in the upper right to generate a new custom report > Select Par Levels from the Report Type drop-down.
You'll notice the updated Par Level report offers new fields to select which we'll cover in more depth below.
Once your desired fields are selected, click Next for filters.
Average number of units per sale (7 or 30 days)
Description of Fields
The updated Par Levels report offers several new fields to assist with your inventory management and planning. The new fields are based on two specific time frames: 7 days and 30 days. This is designed to provide key insights into product activity over those time frames. Below are a few brief descriptions of how these fields are calculated and displayed on the report:
- Equation: Number of units sold in the last 7 or 30 days divided by number of transactions in the last 7 or 30 days
- Equation: Current Quantity minus Par Level divided by (Average number of units sold in the last 7 or 30 divided by 7 or 30)
- Equation: Current Quantity divided by (Average number of units sold in the last 7 or 30 days divided by 7 or 30)
*Accessories do NOT have Package Tags and will therefore not be included in the Number of packages with inventory field
Blank or Negative numbers?
You may find that certain fields show either blank or negatives numbers when generating the report.
A field will be negative if a product's par level or current quantity have already been reached before the report is generated.
Scenario: An edible has a Current Quantity of 0 and a Par Level of 15 > The product has sales that pre-date the 7 and 30 day time frames > The product reached its par level and zero quantity before the 7 and 30-day timeframes
- The Current Quantity - Par Level field will display -15 as it's 15 below the set par level
- The Number of units sold, Average number of units sold, Date reached par level, and Date reached zero quantity will all be blank as no activity took place during those time frames
- The Estimated days until par level/zero quantity fields will display a negative number. This is to show how far back in time the product reached those fields. This allows you to have a better understanding of products that need to be focused on more and ordered more frequently