← All guides

StockSense guide

Inventory Planning for Handmade Products

When you make what you sell, you are the supplier. Your lead time is your own hours, and your stock exists in two forms: finished products and the materials to make more. Standard inventory advice assumes you can order more units. This guide adapts it for a maker.

Plan two inventories, not one

A candle maker with forty finished candles and no wicks is closer to a stockout than the product count suggests. Track finished goods and materials separately, and tie them together with a simple recipe for each product.

Work out your real lead time

For a maker, lead time has more parts than a supplier's delivery estimate. Add them up honestly, including the waiting that happens when you are not working.

StageExample: soap
Materials arrive5 days
Queue until the next making day3 days
Making1 day
Curing, drying or firing28 days
Labelling and photos1 day

That is 38 days from deciding to make more to having stock to sell. A reorder point based only on the 5-day delivery would leave you out of stock for weeks.

Find your weekly capacity

Capacity is the limit a reseller does not have. Count how many units you can finish in a normal week, alongside packing orders and everything else. If your sales forecast for the gift season is higher than that number, the making has to start earlier, because you cannot add hours in the busy week.

Choose what to hold and what to make to order

Not every product needs to sit finished on a shelf. Split the range by how predictable the demand is and how long the customer will wait.

Set reorder points for materials

Materials need their own reorder points, based on how fast you use them and how long the supplier takes. Watch the ones that could stop production entirely.

For the formulas, see how to calculate a reorder point and how to calculate safety stock.

Doing this at scale

StockSense forecasts demand for each finished SKU from your order history, using velocity, trend, seasonality and lead-time-aware safety stock. It recommends a reorder point, quantity and date, and ranks SKUs by revenue at risk, which you can use to decide what to make next. It also drafts purchase orders grouped by supplier. See StockSense.

Doing this for a whole catalog or every order?

See how StockSense handles it for you.

Explore StockSense →

More StockSense guides