When to Reorder Stock: A Practical Guide for Kenyan Retailers
Every duka owner knows the pain. A customer walks in asking for sugar, and the shelf is empty. You lost a sale, maybe lost a regular customer, and now you have to rush to the wholesaler — probably paying more because you are buying urgently instead of planning ahead.
The opposite problem is just as bad. You bought 10 cartons of shoe polish because the supplier gave you a good price, but you only sell 2 tins a week. That money is sitting on your shelf instead of buying fast-moving stock that would earn you more.
The solution to both problems is the same: set a reorder level for every product.
What Is a Reorder Level?
A reorder level is a number you set for each product. When your stock drops to that number, you get an alert: it is time to buy more.
The formula is simple:
Reorder Level = Daily Sales multiplied by Lead Time plus Safety Stock
- Daily Sales: How many units you sell per day on average
- Lead Time: How many days between when you decide to reorder and when the stock arrives
- Safety Stock: Extra buffer for days when you sell more than usual
Example — Sugar:
- You sell about 5 KG per day
- It takes 2 days to go to the wholesaler and restock
- You want 3 days of safety stock
Reorder level = (5 times 2) + (5 times 3) = 10 + 15 = 25 KG
When your sugar stock hits 25 KG, it is time to buy more. This gives you enough stock to last while you arrange the purchase and enough buffer if sales spike over the weekend.
Reorder Levels for Common Duka Products
These are starting points based on a typical small to medium duka. Adjust based on your actual sales.
Fast Sellers (Restock Weekly or More)
These items sell every day. Running out costs you money immediately.
| Product | Unit | Reorder at | Max stock | Notes |
|---|---|---|---|---|
| Bread | Piece | 15 | 25 | Daily delivery — keep low |
| Fresh milk (packets) | Piece | 12 | 24 | Perishable — don't overstock |
| Eggs | Piece | 30 (1 tray) | 90 (3 trays) | Fragile, 3-week shelf life |
| Sugar (loose) | KG | 20 | 100 (2 bags) | Stable demand, long shelf life |
| Maize flour (packets) | Piece | 15 | 48 | Staple — customers go elsewhere if out |
| Cooking oil (loose) | Litre | 10 | 40 | Steady demand |
| Rice (loose) | KG | 10 | 50 | |
| Bar soap | Piece | 20 | 72 (1 carton) | Doesn't expire, safe to stock |
Beverages
| Product | Unit | Reorder at | Max stock | Notes |
|---|---|---|---|---|
| Coca-Cola 500ml | Piece | 12 (half crate) | 48 (2 crates) | |
| Water 500ml | Piece | 24 (1 crate) | 72 (3 crates) | Higher demand in hot weather |
| Tusker 500ml | Piece | 24 (1 crate) | 72 (3 crates) | Weekend spikes |
Household Items
| Product | Unit | Reorder at | Max stock | Notes |
|---|---|---|---|---|
| Omo 500g sachets | Piece | 10 | 24 (1 carton) | |
| Tissue rolls | Piece | 12 | 48 | |
| Toothpaste | Piece | 5 | 12 | |
| Jik 250ml | Piece | 5 | 12 |
Slow Movers (Restock Monthly)
These sell a few times a week at most. Keep stock low.
| Product | Unit | Reorder at | Max stock | Notes |
|---|---|---|---|---|
| Shoe polish | Piece | 3 | 6 | Don't tie up cash here |
| Batteries | Piece | 4 | 8 | |
| Light bulbs | Piece | 3 | 6 | |
| Candles | Piece | 10 | 20 | Spike during power outages |
| Matches | Piece | 15 | 30 | Cheap, keep a good stock |
Adjusting for Your Situation
These numbers are averages. Your shop is not average. Here is how to adjust:
Location Matters
If your shop is at a busy market, bus stage, or main road — increase reorder levels by 50%. You get more walk-in traffic and higher daily sales.
If your shop is in a quiet residential area — decrease by 30%. Your regulars are predictable and volume is lower.
Supplier Distance Matters
If your supplier is nearby (same town, delivers to you) — you can keep lower reorder levels because lead time is short. Maybe even same-day restocking.
If your supplier is far (you have to travel to Nairobi or a major town) — increase your reorder levels. A 2-day trip means you need more buffer stock.
Reliability Matters
If your supplier always has stock — standard reorder levels are fine.
If your supplier sometimes runs out — add extra safety stock. Nothing is worse than making the trip and finding the supplier has no sugar.
Season Matters
Some products spike during certain periods:
- Water and sodas: Higher in hot months (January to March)
- Candles and matches: Higher during election season or expected power outages
- School supplies: January and September (term openings)
- Cement and building materials: Higher in dry months (good building weather)
Increase reorder levels before these periods and decrease after.
Maximum Stock Level
The maximum stock level prevents you from overbuying. It answers: "What is the most I should ever have of this product?"
Set it based on:
- Storage space: Can you physically store 200 KG of sugar?
- Cash available: Do you want KES 26,000 tied up in sugar?
- Shelf life: Bread max should be low (expires in 2-3 days). Sugar max can be high (lasts months).
- Sales velocity: If you sell 5 KG of sugar per day, having 200 KG means 40 days of stock — probably too much.
Rule of thumb: Maximum stock = reorder level times 3 to 5.
| Product | Reorder level | Max stock | Days of stock at max |
|---|---|---|---|
| Sugar | 20 KG | 100 KG | 20 days |
| Bread | 15 pieces | 25 pieces | 1-2 days (perishable) |
| Bar soap | 20 pieces | 72 pieces | 9-14 days |
| Eggs | 30 pieces | 90 pieces | 3-6 days |
| Coca-Cola | 12 pieces | 48 pieces | 4-8 days |
The Cost of Getting It Wrong
Too low (constant stockouts):
- A duka that runs out of sugar loses about KES 500-1,000 per day in missed sales
- Customers develop the habit of going to your competitor
- You end up doing emergency trips to the wholesaler, paying more for transport
Too high (too much stock):
- KES 6,500 in sugar that takes 40 days to sell could have been KES 6,500 in cooking oil that sells in 10 days
- Perishable goods expire on the shelf — pure loss
- Cash flow tightens, you cannot take advantage of good deals on other products
Just right:
- You always have what customers want
- Your cash turns over quickly — buy, sell, buy again
- Alerts tell you what to reorder before you run out
- You stop making panicked trips to the wholesaler
Start Simple
If calculating reorder levels for every product feels overwhelming, start with your top 10 fastest sellers. These are the products that hurt most when you run out. Set reorder levels for those first, then add more products over time.
Your POS system tracks sales automatically. After a month of data, you will know your exact daily sales for every product — and setting reorder levels becomes simple arithmetic instead of guesswork.
Sokosuite sends you automatic alerts when stock hits the reorder level. No more guessing, no more stockouts. Start your free trial today.