How to handle a short shipment from a supplier

Why this matters for forecasting

If you mark a purchase order as fully received when it was not, your on-hand count will be wrong. That throws off your days of stock and your next reorder point, because both depend on accurate on-hand quantity. A short shipment that goes unrecorded correctly can lead to a stockout a few weeks later that looks like it came from nowhere.

Separate the two problems

A short shipment is really two separate problems. First, you have less stock than planned right now, which may need an urgent top-up order. Second, you have an open balance with the supplier that needs resolving, whether that is a backorder, a credit, or a cancellation. Treat these separately so one does not get lost while you deal with the other.

Step by step

1. Receive only the units that physically arrived, leaving the rest of the purchase order open.
2. Contact the supplier the same day to find out if the missing units are coming later or are cancelled.
3. If they are coming later, keep the purchase order open with the new expected date so your on-order quantity stays correct.
4. If they are cancelled or delayed indefinitely, remove them from on-order and decide if you need a new order now.
5. Recalculate days of stock using the real on-hand number, not the original order quantity.
6. If days of stock is now below your lead time plus safety days, place a new order or expedite one immediately.
7. Note the short shipment against that supplier so you can factor it into future safety days.

Worked example

You ordered 200 units of a candle from a supplier with a 14-day lead time and 5 days of safety stock. Only 140 arrive, so you receive 140 and leave 60 open on the purchase order. Your daily sales for that candle is 8 units, so your reorder point is 8 x (14 + 5) = 152 units. With 140 on hand and 60 still on order, you are at 200 total, above the reorder point, so no urgent action is needed yet. But if the supplier later cancels the remaining 60, you drop to 140 on hand with nothing on order, which is below the 152 reorder point, so you need to place a new order right away.

How SteadyShelf helps

SteadyShelf supports partial receiving, so you can log exactly what arrived and keep the rest of the purchase order open against that supplier. It will then recalculate on-hand and on-order quantities and flag the SKU again if it drops below its reorder point, but it will not contact the supplier or manage credits and disputes for you, that part stays manual.

$29/month flat, unlimited products and suppliers, 30-day free trial. Run the numbers now with the free reorder point calculator.

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Related guides

• How to handle a supplier price increase
• How to handle a supplier that ships late
• How to handle backorders when you run out
• How to get rid of dead stock

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