Stock / Non-Stock Order Development

How orders were fulfilled previously

Traditionally, customers have been given one delivery date per order, even when the order included non-stock items (items we do not physically hold in our warehouse).

This meant:

Customers were not told which items were in stock at the point of ordering
Orders appeared simple to the customer, but created issues behind the scenes

While this has worked to a point, it has caused ongoing problems for both Safpro and our customers.

Issues with the old process

1. Missed SLAs (Service Level Agreements)

Orders were sometimes held in fulfilment while we waited for non-stock items to arrive.
This meant we missed agreed SLA's, even when most of the order was ready to ship.

2. No visibility for customers

Customers could not see:

Which items were stock
Which items were non-stock
When non-stock items would arrive

This led to confusion and frustration.

3. Partial releases caused confusion

Our internal policy was to release orders once 75% or more of items were in stock.

This meant:

Up to 25% of an order could be missing
Customers expected a full delivery
Customers had no visibility on when remaining items would follow

4. Inaccurate OTIF reporting

OTIF (On Time In Full) measures whether an order arrives:

On time
Complete

Under the old process:

Any order containing a non-stock item that wasn't delivered within the SLA automatically failed OTIF
This meant we could not accurately report our true performance

5. Returns not clearly understood

Customers were not always aware that non-stock items are non-returnable, as this was not clearly stated at the point of order.

The new process (going forward)

Orders will now be fulfilled based on a customer choice at the basket stage.

Customer delivery options

If an order contains both stock and non-stock items, the customer will see two options:

Option 1: Single delivery

The customer waits for all items
The order is delivered in one shipment
The delivery date defaults to the latest due date of the non-stock item

Option 2: Split delivery

Stock items are delivered within the agreed SLA
Non-stock items are delivered later, once available
Customers can clearly see what will arrive and when

Important

Orders made up entirely of stock items are unaffected
These customers will not see the delivery choice options

Non-stock return policy

If a product is non-stock, this will now be clearly stated at the point of order, including that it is non-returnable.

Benefits of the new process

For customers

Clear control over how and when their order is delivered
Full visibility of stock vs non-stock items
Clear expectations on lead times

For Safpro

Accurate OTIF reporting (stock and non-stock measured separately)
Fewer SLA breaches
Fewer delivery and return issues
Improved customer experience

Important notes for staff

Teething issues after go-live

As we fine-tune the stock range:

Some products may be incorrectly marked as stock or non-stock
The Procurement team will monitor orders closely and Product statuses will be corrected where needed.

Stock equivalents

Please note that if a customer regularly orders a non-stock item (for example, a chino trouser) and they are the only customer purchasing it, we would not make this item a stocked product. However, for commonly ordered non-stock items, we should always have a suitable equivalent available within our stocked range that we can direct customers to. If no suitable stock alternative exists, please raise this with the Procurement team.

Specialist products

Some products will always be non-stock, for example specialist PPE. The key improvement is that customers will now see the expected lead time before ordering.

Responsibility of KAMs & Customer Success Execs

Key Account Managers and Customer Success Executives must:

Actively guide customers towards stocked products where possible
Explain the benefits (faster delivery, easier returns, better experience)

This is critical to improving outcomes for both the customer and Safpro.

FAQ'S

How are delivery dates are calculated for non-stock items?

Scenario 1: Non-stock item with an existing Purchase Order (PO)

If the item:

Is not in free stock
Does have an outstanding PO on the system

The delivery date is calculated as:

PO delivery date
(includes procurement buffer for delays)
1 day non-stock handling time
1 day delivery time (in transit to client)

Additional time added if applicable:

+4 days if the item is branded

Scenario 2: Non-stock item with no existing PO

If the item:

Is not in free stock
Does not have an outstanding PO

The delivery date is calculated as:

Supplier Priority 1 lead time
(includes procurement buffer)
1 day non-stock handling time
1 day delivery time (in transit to client)

Additional time added if applicable:

+4 days if the item is branded

How does this affects order processing (internal)?

Stock items are marked as green
Non stock items are marked as red

There will be 3 types of orders:

Orders that are 100% stock (lines will be all green)

Input the client SLA

Customer chooses split delivery

Input the client SLA for the stock portion (lines will be all green)
Input the latest required date for the non-stock portion (lines will be all red)
(hopefully will be pre populated - TBC)

Customer chooses wait and receive a single delivery (lines will be a mix of green and red)

Input the latest required date for the non-stock item, not the client SLA.
(hopefully will be pre populated - TBC)

How does this affect invoicing?

There will be no difference to invoicing. The orders would just go onto two different invoices unless consolidated invoicing is switch on for the account and then we could combine them.

What if a stock item is out of stock and on back order?

There will be no change to the current back order process. Unfortunately the reality is that stock items may still occasionally go on back order, however this should be minimised by Procurement now that we have a clear, defined range.

Is this development based on actual stock levels or based on our core vs non core range?

This is based on our core vs non-core range. Stock and non-stock mean the same thing — they’re simply different terms.

As outlined above, stock items may still occasionally go on back order, for example if a client places an unexpected bulk order. However, now that our core range is clearly defined, the procurement team will have far better control of these items, and it is their responsibility to minimise and prevent this wherever possible.

How will carriage charges work?

If a customer chooses to split their order, carriage is applied per shipment, where a carriage charge is set on the account (which it should be).

Using the example of £8.95 carriage below £75.00 and FOC above £75.00:

If the order is split and both the stock and non-stock orders are below £75.00, two carriage charges will apply (one per shipment).
If the order is split and the stock order is above £75.00, that shipment qualifies for free carriage, and the non-stock order, if below £75.00, will incur one £8.95 carriage charge.
Vice versa, if the non-stock order is above £75.00, that shipment qualifies for free carriage, and the stock order, if below £75.00, will incur one £8.95 carriage charge.

In both mixed-value scenarios, the customer will therefore only pay one carriage charge.

How will service performance, also known as OTIF (On time in full) be measured?

OTIF (On Time In Full) will now be measured based on the delivery option chosen by the customer.

Previously, mixed stock and non-stock orders were confirmed against the customer SLA (service level agreement), meaning any order containing a non-stock item would almost always fail OTIF.

Going forward:

Stock items are measured against the customer SLA.
Non-stock items are measured against their confirmed lead time at the point of order.

Customers will have the ability to choose whether to split deliveries or receive everything in one shipment, so the required-by dates are accurate and OTIF/service performance is driven by the order required by date.