How to Stop Running Out of Materials: A Simple Inventory System for Makers

Why do makers keep running out of materials?

Makers run out of materials because stock is tracked by memory, usage is higher than they realise, and suppliers take longer to deliver than they assume. Nobody checks until something runs out. This is a system problem rather than a carelessness problem, and system problems can be fixed.

It is also costly. A missing wick or clasp stalls every order that needs it, and it is one of the profit leaks covered in our guide to hidden costs eating handmade profit.

What is a reorder point and how do I calculate it?

A reorder point is the stock level at which you place a new order so that fresh supplies arrive before you run out. The formula is: reorder point = daily usage × (supplier delivery days + buffer days).

For example, if you use 6 wicks a day, your supplier takes 5 days and you want a 3-day buffer, then 6 × (5 + 3) = 48 wicks. When you drop to 48, you reorder.

Usage changes with the seasons, so revisit these numbers every few months and before busy periods such as autumn and the run-up to Christmas.

How do I set up minimum stock levels?

To set up minimum stock levels, pick the materials that would stop you making something if they ran out, measure how fast you use each one, find your supplier’s delivery time and apply the reorder point formula. Here is the process:

1. 1. Choose your key materials: the five to ten that would stop production if they ran out.
2. 2. Measure daily usage: count what you use over two weeks and divide by the days.
3. 3. Find each supplier’s delivery time in working days, including how reliable it is.
4. 4. Choose a buffer of extra days to cover delays and busy spells.
5. 5. Calculate the reorder point as daily usage × (delivery days + buffer days) and set it as the minimum level.
6. 6. Check stock weekly and reorder anything at or below its minimum.

You do not need to track every pin and ribbon. Start with your top five to ten materials and add more later.

What is a production bottleneck?

A production bottleneck is the one material that limits how many finished products you can make. To find it, work out how many products each material could produce and look for the lowest number.

You can make 40 candles, not 150, so the wicks are the bottleneck. Buying more wax would not help at all. Knowing this stops you spending money on the wrong thing.

How do I avoid buying too much?

Avoid over-buying by treating a bulk discount as a saving only if you will genuinely use the stock before you need the cash or the shelf space. Once you have been caught short, it is tempting to buy huge quantities “just in case”, which creates a different problem: money tied up in materials that can expire, go out of fashion or never get used.

The aim is not to hold more stock but to hold the right amount, and to know when to top up.

How often should I check my stock?

Check your key materials once a week, on the same day, and compare each with its minimum level. Anything below the line goes on the order list. Ten minutes a week is enough to avoid most emergencies.

Should I use a spreadsheet or inventory software?

Either can work. A notebook or spreadsheet is free and flexible, but it needs updating after every order and delivery, and that is the first job to slip when you are busy. Inventory software for makers keeps materials, recipes and sales together and updates stock as you sell, so the numbers stay true without extra work. The best system is the one that stays up to date.

Frequently asked questions

What is a reorder point?

A reorder point is the stock level at which you place a new order so that fresh supplies arrive before you run out. It equals daily usage multiplied by supplier delivery days plus buffer days.

How much safety stock should a small maker keep?

Enough to cover delivery delays and busy spells for your key materials, commonly a few days to a week of usage, depending on how reliable the supplier is. Start small and adjust after a few months of real data.

How do I calculate how much of a material I use per day?

Count how much you use over a period, such as two weeks, then divide by the number of days. For example, 84 wicks used over 14 days is 6 wicks a day.

What is the difference between low stock and dead stock?

Low stock means you are close to running out of something you need. Dead stock is finished product or material that is not selling or being used, tying up cash and space.

Do I need inventory software for a small craft business?

No, a spreadsheet can work. Software helps once upkeep becomes a chore, because it updates stock as you sell and warns you before materials run out.

How do I track stock when I sell at markets?

Record each sale as it happens, or match your card payments to products afterwards. KavanaStock can sync with your own SumUp account on the Pro plan so stock and profit update from your payments.