Inventory how-to

How to plan inventory for handmade products

Plan handmade inventory around your actual production capacity, not just sales demand.

Short answer: Plan handmade inventory around your actual production capacity, not just sales demand. Treat your production time as the "lead time" in your reorder math, and build safety stock that accounts for maker availability, not just supplier shipping delays.

Production time is your lead time

For handmade goods there is no supplier shipping delay to plan around. Instead, your lead time is how long it takes you or your maker to produce a batch, from starting materials to finished, sellable stock. If a batch of 20 candles takes 5 days to pour, cure, and label, that 5 days is your lead time for reorder math, same as if it were a supplier's shipping window.

Be honest about variability. Handmade production time often swings more than supplier shipping does, because of batch sizes, drying or curing time, and your own availability. Pad your safety days more generously than you would for a bought-in product.

Plan at the material level too

Handmade inventory planning has two layers: finished product stock and raw material stock. You need enough raw materials on hand to start a new batch the moment your finished stock hits the reorder point. If you wait until you are out of candles to order wax, you have added your supplier's wax lead time on top of your own production lead time, and you will stock out.

Keep a simple running check on your key materials (the ones that take longest to get or run out fastest) and reorder those on their own schedule, separate from finished product tracking.

Round to batch sizes, not exact demand

Handmade production usually runs in batches, not single units. If your forecast says you need 23 units before the next production run, plan a batch of 25 or whatever your batch size is, not a precise 23. Trying to make the exact forecasted quantity usually costs more time than the extra few units are worth.

Step by step

  1. List each handmade SKU and note its production time from start of a batch to finished, sellable stock.
  2. Set your lead time for reorder math to that production time, not zero.
  3. Add safety days to cover maker unavailability, drying or curing delays, and demand spikes.
  4. Track raw materials for your top SKUs separately, and reorder materials before finished stock runs out.
  5. Calculate reorder point as daily sales times (production lead time plus safety days).
  6. Round suggested quantities up to your natural batch size, not the exact forecast number.
  7. Review actual production times every few months and adjust your lead time if batches are taking longer than planned.

Worked example

A soap maker sells an average of 4 bars a day of their lavender soap. A batch takes 6 days to make, cure, and package, and they add 3 safety days for unpredictable curing time. Reorder point = 4 x (6 + 3) = 36 bars. If they have 40 bars on hand and nothing in production, they are still above the reorder point and can wait. Once stock drops to 36, they start a new batch sized to their usual 50-bar mold capacity, not a precise leftover number.

How SteadyShelf helps

SteadyShelf can track your forecast and reorder point for finished handmade SKUs if you enter your production time as the lead time and set safety days to cover your typical delays. It does not track raw materials, batch recipes, or bill of materials, so you still need to manage your material stock separately by hand or spreadsheet.

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

SteadyShelf is launching on the Shopify App Store. Join early access to get the install link first.

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FAQ

Can SteadyShelf tell me when to buy raw materials like fabric or wax?

No. SteadyShelf forecasts and reorders finished, sellable SKUs in your store. It has no concept of raw materials or bills of materials, so material purchasing needs its own simple tracking, ideally reviewed on the same schedule as your finished product reorder checks.

What if my production time varies a lot from batch to batch?

Use your worst realistic case, not your average, when setting lead time and safety days. It is better to start a batch a few days early than to sell out while a slow batch is still curing or drying.

Let SteadyShelf do this math for every SKU

Order-by dates per supplier, seasonal forecasts and draft POs for your Shopify store. $29/month after a 30-day free trial.

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