Operations

Inventory for blanks: par levels without over-ordering

Hold stock only where it earns its keep: fast-moving sizes and colours you reorder monthly, plus anything with an unreliable lead time. Set a par level from average weekly usage times lead time in weeks, plus a safety buffer sized by how variable that usage is. Everything else should be ordered per job.

How to decide what to hold, how much, and when to reorder, without turning your stockroom into your bank account.

A warehouse worker organizing shelves with industrial products under the warehouse light.
Photo: cottonbro studio / Pexels

Blanks are the biggest line in most print shop costs and the easiest place to trap cash. The stockroom that feels like preparedness is often several months of profit sitting in cardboard.

What deserves shelf space

Three tests. A style earns stock if it passes at least two:

  1. You reorder it monthly or more. Predictable demand is what makes a par level meaningful.
  2. The lead time hurts. If a stockout costs you a job because the supplier takes ten days, holding is buying reliability.
  3. It is not at risk of discontinuation. Fashion colours and seasonal ranges are the worst things to hold.

Everything else is ordered per job. Your supplier is a better warehouse than you are.

Setting the par level

par level = (average weekly usage x lead time in weeks) + safety buffer

The safety buffer is where judgement lives. A rough rule: half a lead time's usage for steady lines, a full lead time's usage for lines with lumpy demand or an unreliable supplier.

Item Weekly usage Lead time Buffer Par
Black tee, L 60 1 week 30 90
Black tee, XS 4 1 week 4 8
Navy hoodie, M 12 2 weeks 12 36
Fashion colour tee 3 2 weeks n/a Order per job

Note the XS line. Holding the same depth across a size curve is the most common inventory mistake in apparel: you end up with the extremes on the shelf forever and the middle always out.

Count the middle, not everything

Full stocktakes are painful, so they get skipped, so the numbers drift, so nobody trusts them, so nobody uses them. Cycle counting fixes this: count a small slice weekly, so every fast-moving line gets counted often and the slow ones eventually. Ten minutes a week beats a lost Saturday twice a year.

The three numbers to watch

Order against real demand, not the feeling of being busy

The reorder trigger should come off actual committed orders plus par levels, not off a walk round the stockroom. That means knowing what is committed to jobs already in the system and not yet pulled, which is exactly the number a walk round cannot tell you.

Printer's Friend tracks SKU-level stock with cycle counts, holds a par level per SKU, and suggests purchase orders from committed orders plus par shortfall so you are ordering against demand rather than vibes. Supplier catalogues sync where a live feed exists and import from CSV where it does not, so a quote can check stock before you promise a date.

The safety buffer, sized by variability

A safety buffer is not a feeling, it is a function of how unpredictable two things are: your usage and your supplier. Two lines with identical average usage need very different buffers if one is a steady club order and the other is lumpy retail demand.

Situation Buffer as weeks of usage
Steady usage, reliable supplier, short lead time 0.5 to 1
Steady usage, occasionally late supplier 1 to 2
Lumpy usage, reliable supplier 2 to 3
Lumpy usage, unreliable supplier or long lead time 3 to 4, or do not hold it at all

That last row is important. Some lines should not be stocked, they should be quoted with an honest lead time. Holding four weeks of a slow, unpredictable line is how a stockroom quietly becomes the largest asset in a business that has no cash.

Cost the stockout, not just the stock

The reason par levels get set too low is that holding cost is visible and stockout cost is not. A stockout on a job in production costs rush freight, a resequenced press day, sometimes a late delivery and a credit, and occasionally the account.

A rough comparison for one line, over a year:

  1. Holding cost. Value on the shelf times roughly 20 to 25 percent, covering cash, space, obsolescence and shrinkage.
  2. Stockout cost. Number of stockouts times rush freight plus disrupted press time plus the probability of a late delivery penalty.

Run that on your top ten lines and the answer is usually that your fast movers are under-stocked and your slow movers are over-stocked, which is the standard failure of a stockroom managed by memory.

Let the system suggest the order

Reorder points are arithmetic, and arithmetic is what software is for. What matters is that the suggestion comes from real consumption: stock consumed when jobs run, not stock adjusted when someone notices a gap.

That requires the stock ledger and the production system to be the same system. When a quote is accepted the stock is reserved, when the job runs it is consumed, and the reorder point fires against real committed demand rather than a monthly guess. Printer's Friend does exactly that, with suggested purchase orders generated from your own velocity, a purchase order you can email to the supplier in a click, and receiving that credits the ledger so the next suggestion is right.

The three habits that keep it honest

Count the middle regularly. Full stocktakes are rare and wrong; rolling cycle counts on your fastest lines are frequent and right.

Review par levels quarterly. Usage changes with your customer mix. A par level set eighteen months ago is describing a business you no longer run.

Kill a line rather than nurse it. If it has not moved in two quarters, it is not stock, it is furniture. Clear it and take the shelf space back for something that turns.

Related: pricing screen print treats blanks as a cost line, and managing rush season is largely an inventory problem in disguise.

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Get the pricing pack

One formula per decoration method, a worked example, and the seven numbers to watch. Free PDF.

  • One formula per decoration method
  • 100 black tees, priced line by line
  • The seven numbers to watch weekly

Questions

Should a small shop hold blank stock at all?
Only a narrow core. Your suppliers hold stock far more cheaply than you can, so the case for holding is speed and reliability, not price. A few fast-moving styles in mid sizes, and nothing else.
How do I set a par level?
Average weekly usage times supplier lead time in weeks, plus a safety buffer. Use a bigger buffer where usage swings a lot or the supplier is unreliable, and review the numbers quarterly rather than annually.
What about a supplier discount for bulk buying?
Compare the discount against the cost of the cash being tied up, the space, and the risk of a style being discontinued. A 5 percent discount on stock that sits for six months is usually a bad trade.
How do I calculate a reorder point rather than a par level?
Reorder point equals average weekly usage times lead time in weeks, plus your safety buffer. The par level is where you top up to; the reorder point is when you act. Setting one without the other is why shops either run out mid-job or hold twice what they need.
What stock turn should I aim for?
Six to twelve turns a year on your core lines is healthy for a decorating business. Below four and the shelf is a savings account with no interest; above about fifteen and you will be paying rush freight to cover gaps.
How do I deal with dead stock I already own?
Sell it as decorated stock at a real price rather than holding it for a customer who is not coming back. A campaign page or a clearance line on your store moves it, and the cash is worth more than the hope. Then fix the reorder rule that created it.

Run the shop, not the chaos.

Printer's Friend turns every job in this article into a tracked order: quote, artwork approval, production stage, invoice.

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