The Procurement Glossary » Replenishment

Replenishment

Inventory & Logistics

Definition

The process of restocking inventory to maintain target levels as items are consumed.

Explanation

Replenishment can be manual, reorder-point driven, or automated via demand signals or VMI. Efficient replenishment keeps availability high without overstocking, and is increasingly automated for predictable items.

Example

Automated replenishment raises a PO whenever stock hits the reorder point, no human trigger needed.

Related terms

• Reorder Point (ROP) — The inventory level at which a replenishment order should be placed to avoid running out before it arrives.
• Vendor-Managed Inventory (VMI) — An arrangement where the supplier monitors and replenishes the buyer's stock of its items, taking responsibility for availability.
• Safety Stock — Extra inventory held as a buffer against variability in demand or supply, to reduce the risk of stockouts.
• Demand Forecasting — Predicting future demand for goods to guide purchasing, inventory and production planning.

Frequently Asked Questions

What is Replenishment?

The process of restocking inventory to maintain target levels as items are consumed. Replenishment can be manual, reorder-point driven, or automated via demand signals or VMI. Efficient replenishment keeps availability high without overstocking, and is increasingly automated for predictable items.

Can you give an example of Replenishment?

Automated replenishment raises a PO whenever stock hits the reorder point, no human trigger needed.

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