01
Smart Purchase Order Automater
Drafts vendor POs from real velocity, lead times and par levels so the same SKU doesn't run out twice.
Guide — Stockout Cost
Every stockout is two losses. Here's how to size both.
The shelf was empty. The customer bought a substitute, or worse, walked out and ordered it online. Sizing what that actually costs you — not just the missed transaction but the missed future trips — is the first step to fixing it. Here's the framework, plus the AI Workforce that prevents the next one.
StockoutsSubstitution rateRepeat visit frequencyAverage basketLead times
Quick answer
Why stockouts cost more than the missed transaction
A stockout costs you two things: the sale that didn't happen today, and a measurable drop in the probability that customer comes back. Most independent operators lose meaningful revenue to stockouts and don't realize it because the lost trip never shows up in the POS. This framework gives you a directional number, and the Smart Purchase Order Automater closes the loop so the same SKU doesn't run out again.
Data → Agents → Action
How the AI layer fits in
SalesVu connects day-to-day workflows with AI agents that move you from operational data to recommended action in minutes, not weeks.
Operational data
- On-hand counts
- Sales velocity
- Lead times
- Substitution rate
- Repeat frequency
SalesVu data layer
- Products
- Orders
- Customers
- Locations
AI Workforce
- Smart PO Automater
- Analyst Agents
- Marketplace Sync Agent
- Email Automation Agent
Outcome
- Fewer stockouts on top SKUs
- Better par levels
- Recovered repeat trips
- Tracked outcome
Recommended AI agents
Who closes the loop
02
Analyst Agents
Surfaces your top-velocity SKUs and your worst stockout offenders every week with a recommended action.
03
Marketplace Sync Agent
Keeps stock signals consistent across channels so you don't oversell what isn't on the shelf — and don't hide what is.
04
Email & SMS Automation Agent
Sends a back-in-stock notification to the customers who asked about the SKU so the recovered sale actually happens.
Where it pays off
The 4-step stockout cost framework
Walk this with your team. The annualized number usually surprises people.
Step 1 — Identify your top-velocity SKUs
Most stockout cost comes from a small share of products — the items your customers come in specifically to buy. Start there. SalesVu's Analyst Agents surface this list automatically.
Step 2 — Estimate stockout days per top SKU
How many days per month is each top SKU at zero? Most operators are surprised by the answer — even when their general inventory feels healthy, their best-sellers are often the worst offenders.
Step 3 — Apply a lost-sale assumption
Pick a conservative share of stockout shoppers who walk rather than substitute or wait. Your category manager will have a defensible number; if you don't have one yet, start with half and refine over time.
Step 4 — Add the future-trip discount
Customers who experience repeated stockouts visit measurably less often. Apply a conservative discount to the future-visit value of affected customers, add that to step 3, and annualize.
Answer-engine FAQs
Common questions
What's a defensible lost-sale assumption?+
It varies meaningfully by category. The point of the framework isn't to land on a precise figure — it's to put a directional number in front of leadership so the conversation moves from 'we should fix stockouts' to a dollar value worth investing against. Refine the assumption with your category manager over time.
Does this apply to restaurants and grocery, not just retail?+
Yes — substitute '86 list' for 'stockout' and the framework holds. The Smart PO Automater works for produce, proteins, alcohol and packaged goods.
Can the Smart PO Automater handle multiple vendors per SKU?+
Yes. It picks the right vendor based on price, lead time, MOQ and your supplier preferences.
What about seasonal items?+
The agent factors seasonality and event-driven demand into its drafts. You can also force a higher par for a defined window (holiday, festival, tournament).
How is this different from a standard reorder report?+
A reorder report tells you what hit a fixed minimum yesterday. The agent uses velocity, lead time, demand trend and your real margin to draft a PO that actually optimizes for what to buy.
How fast will we see fewer stockouts?+
Most teams see a measurable drop in their top-SKU stockout days within the first weeks of running the Smart PO Automater.
Which four settings actually drive auto-PO drafts?+
Threshold Quantity (the floor that triggers a reorder), Max Stock Days (how many days of inventory you want on hand), Storage Capacity (the ceiling so nothing over-orders) and Lead Time. The Smart PO Automater combines these with real sales velocity to draft the order.
What is the Days-on-Hand stockout forecast?+
Days on Hand projects how many days of inventory remain for each SKU at current sales velocity. It's the metric most operators check first on Monday — and it feeds the Smart PO Automater so the next PO arrives before the stockout, not after.
What if a vendor's lead time is drifting?+
The PO Lead Time Analyst watches the gap between when POs are placed and when goods actually arrive, by vendor, and flags drift so reorder points and Smart PO drafts stay accurate.
Can the system handle multi-location and storage areas?+
Yes. Stock is tracked per location and per storage area; multi-location transfers, partial receives and count sheets all flow into the same on-hand math the agent uses.
How do we capture the recovered sale once an item is back in stock?+
The Email & SMS Automation Agent sends a back-in-stock notification to the customers who asked about the SKU, and the Out of Stock Setting unhides the item on the right channels automatically.
Want to size your stockout cost?
30 minutes with a SalesVu specialist. We'll walk the framework against your real top-SKU data and show you the Smart PO Automater closing the loop.