Global Insights Configuration: Optimize Your Inventory Thresholds
Quick Answer
Global Insights are system-wide settings that determine how Synplex calculates inventory status and grades products.
What they control:
├─ When products show "Running Low"
├─ When products show "Overstocked"
├─ How products are graded (A/B/C)
├─ Lead time assumptions
├─ Safety stock levels
└─ All automatic status indicators
Why it matters:
- ✅ Ensures accurate status indicators
- ✅ Prevents stockouts or overstock
- ✅ Aligns with your business model
- ✅ Improves decision-making
- ✅ Reduces manual oversight
Understanding Global Insights
Why Configuration Matters
Synplex doesn't know your business automatically:
Synplex knows:
├─ How much you have on hand
├─ How much you're selling
├─ When shipments arrive
└─ Historical data
Synplex doesn't know:
├─ Your lead times (how long suppliers take)
├─ Your acceptable risk level (safety stock)
├─ When YOU want warnings (Running Low threshold)
├─ Your storage capacity (Overstocked threshold)
├─ Your business priorities (what to grade by)
└─ These are YOUR decisions
Solution:
├─ Configure global insights
├─ Tell Synplex your business rules
├─ Synplex applies them automatically
└─ Everything becomes personalized to YOU
What Gets Configured
Four main areas:
1. STOCK LEVELS
├─ Lead time
├─ Stock buffer (safety stock)
├─ Running low threshold
└─ Overstocked threshold
2. GRADING
├─ Calculation period
├─ Grading method (revenue, profit, or volume)
└─ Grade distribution (A%, B%, C%)
3. DAILY SALES CALCULATION
├─ Look-back period (30, 60, 90 days?)
└─ How to calculate average
4. OPTIONAL: PRODUCT-SPECIFIC
├─ Different lead times per supplier
├─ Custom settings per product
└─ Advanced (covered separately)
Part 1: Stock Level Settings
Setting 1: Lead Time
What it is: Average days from placing order to receiving inventory.
Definition:
├─ Order placed: Day 0
├─ Shipment in transit: Days 1-X
├─ Inventory received: Day X
└─ Lead time = X days
Example lead times:
├─ Local supplier: 3-5 days
├─ Regional distributor: 7-10 days
├─ International supplier: 20-45 days
├─ Average across all: 14-21 days
Why it matters:
├─ Determines when to reorder
├─ Affects "Days to Order" calculations
├─ Impacts running low threshold
├─ Directly affects stock levels needed
└─ Critical to accuracy
How to set:
├─ Calculate average across all suppliers
├─ Start: 14 days (typical middle ground)
├─ Adjust: As you learn your suppliers
├─ Can be: Fine-tuned per supplier later
└─ Note: This is global average (can override per product)
Setting 2: Stock Buffer (Safety Stock)
What it is: Reserve inventory to protect against surprises.
Definition:
├─ Extra inventory kept on hand
├─ For demand spikes, late deliveries, etc.
├─ Insurance against disruptions
└─ Expressed as: Days of sales
Example buffers:
├─ Conservative: 5-7 days of sales
├─ Moderate: 10-14 days of sales
├─ Aggressive: 20-30 days of sales
└─ Your choice based on risk tolerance
Why it matters:
├─ Prevents stockouts
├─ Handles demand variability
├─ Accounts for supply delays
├─ Protects customer satisfaction
├─ Costs money (capital tied up)
└─ Balance: Safety vs. capital efficiency
How to set:
├─ Start: 15 days (good middle ground)
├─ Consider: Your suppliers' reliability
├─ Consider: Demand volatility
├─ Consider: Product criticality
├─ Higher if: Expensive to stockout
├─ Lower if: Can tolerate occasional shortage
└─ Adjust: As you understand your business
Setting 3: Running Low Threshold
What it is: When Synplex warns you to reorder.
Definition:
├─ Inventory level that triggers alert
├─ Says: "Time to order now"
├─ Expressed as: Days of remaining sales
└─ Status shows: "Running Low"
How it's calculated:
├─ Accounts for: Lead time
├─ Accounts for: Safety stock
├─ Formula: When remaining stock = safety stock only
├─ Meaning: After you order, you'll have safety buffer when it arrives
└─ Example calculation below
Example (30-day threshold):
├─ Lead time: 10 days
├─ Safety stock: 10 days
├─ Running low threshold: 30 days
│
├─ Trigger: When only 30 days of sales remain
├─ At that point: After 10-day lead time passes
├─ You'll have: Only 20 days left
├─ Plus incoming order: Restocks to safety level
└─ Timing: Perfect order point!
Why it matters:
├─ Earliest warning to reorder
├─ Prevents stockouts
├─ Gives time to place order
├─ Accounts for all factors
└─ Personalized to your needs
How to set:
├─ Start: 45 days (typical recommendation)
├─ Higher if: Long lead times
├─ Higher if: Volatile demand
├─ Lower if: Short lead times
├─ Lower if: Stable demand
├─ Adjust: Based on your comfort level
└─ Goal: Never miss a reorder opportunity
Setting 4: Overstocked Threshold
What it is: When you have too much inventory.
Definition:
├─ Inventory level that's excessive
├─ Says: "Stop ordering, you have enough"
├─ Expressed as: Days of sales
└─ Status shows: "Overstocked"
Example thresholds:
├─ Conservative: 60 days of sales
├─ Moderate: 90 days of sales
├─ Liberal: 120-180 days of sales
└─ Your choice based on capacity
Why it matters:
├─ Prevents over-ordering
├─ Stops capital waste
├─ Identifies slow-moving items
├─ Signals excess inventory
├─ Forces action (promotion, clearance)
└─ Improves cash flow
How to set:
├─ Start: 120 days (good starting point)
├─ Lower if: Limited storage space
├─ Lower if: Products expire/go out of style
├─ Higher if: Lots of storage space
├─ Higher if: Long shelf life products
├─ Consider: Your storage costs
├─ Consider: Product depreciation
└─ Adjust: Based on your capacity and costs
Part 2: Grading Configuration
What Grading Is
Grading classifies products into performance tiers (A, B, C).
Purpose:
├─ See your top performers at a glance
├─ Prioritize management effort
├─ Allocate resources efficiently
├─ Understand product portfolio
├─ Make strategic decisions
Grade meanings:
├─ Grade A: Top 80% of value (revenue/profit/volume)
├─ Grade B: Next 15% of value
├─ Grade C: Bottom 5% of value
└─ Typical distribution (adjustable)
Setting 1: Calculation Period
How far back to look for grades:
Options:
├─ Last 30 days: Recent performance
├─ Last 60 days: Medium-term trends
├─ Last 90 days: Quarterly view
├─ Last 365 days: Full year view
How to choose:
├─ New business: 30-60 days (recent trends matter)
├─ Established business: 90 days (balanced view)
├─ Mature business: 365 days (proven performance)
├─ Seasonal business: Match to season
└─ Try: Start with 90 days
Why it matters:
├─ Short period: Reacts to recent changes
├─ Long period: Stable grades
├─ Reflects: Your current business
└─ Updates: Typically daily
Setting 2: Grading Method
What metric to grade by:
REVENUE (Most common)
├─ What: Total money generated
├─ Best for: Most businesses
├─ Shows: Revenue drivers
├─ Example: Top sellers = Grade A
└─ Advantage: Clear business impact
PROFIT (Financial focus)
├─ What: Profit per product (after costs)
├─ Best for: Margin-conscious business
├─ Shows: Most profitable items
├─ Example: High margin = Grade A
└─ Advantage: Accounts for costs
SALES VOLUME (Unit-based)
├─ What: Number of units sold
├─ Best for: Physical product volume
├─ Shows: Velocity leaders
├─ Example: Most units sold = Grade A
└─ Advantage: Pure movement metric
How to choose:
├─ Revenue: If you care about total money
├─ Profit: If you care about margins
├─ Volume: If you care about turnover
└─ Most common: Revenue (recommended)
Setting 3: Grade Distribution
What percentage falls into each grade:
Typical default:
├─ Grade A: 80% (top performers)
├─ Grade B: 15% (secondary performers)
├─ Grade C: 5% (niche/slow)
Why these percentages:
├─ Based on Pareto principle (80/20 rule)
├─ 80% of value from 20% of products
├─ Grade A = top 20% of products = 80% of value
├─ Grade B/C = rest of products = 20% of value
└─ Industry standard
Can adjust based on:
├─ Your product mix
├─ Your business model
├─ Your goals
└─ How you want to segment
Example adjustments:
Heavily concentrated catalog:
├─ Original: A=80%, B=15%, C=5%
├─ Changed to: A=90%, B=8%, C=2%
├─ Reason: Few products drive business
Diverse catalog:
├─ Original: A=80%, B=15%, C=5%
├─ Changed to: A=70%, B=20%, C=10%
├─ Reason: More spread across products
How to adjust:
├─ Settings page: Grade section
├─ Modify: A%, B%, C% sliders
├─ Total must: Equal 100%
├─ Updates: Typically next day
└─ Test: See which makes sense for you
Part 3: Recommended Starting Configuration
Quick Start: Conservative Approach
Recommended default settings for new users:
STOCK LEVELS:
├─ Lead time: 15 days
├─ Stock buffer: 15 days
├─ Running low threshold: 45 days
├─ Overstocked threshold: 120 days
GRADING:
├─ Calculation period: 90 days
├─ Grading method: Revenue
├─ Distribution: A=80%, B=15%, C=5%
DAILY SALES:
├─ Look-back period: 90 days
└─ Calculation: 7-day rolling average
Why these defaults:
├─ Lead time: Middle ground (5-30 days typical)
├─ Stock buffer: Good safety margin (not excessive)
├─ Running low: Early warning (45 days notice)
├─ Overstocked: Prevents over-ordering (4 months)
├─ Grading: Industry standard
└─ Result: Safe, stable, professional setup
How to Configure: Step-by-Step
Implementation walkthrough:
Step 1: Navigate to Settings
├─ Go to: Settings
├─ Find: "Insight Settings" or "Global Insights"
├─ Click: To open configuration page
└─ You should see: Stock Levels section
Step 2: Configure Stock Levels
├─ Lead time: Change to 15 days
├─ Stock buffer: Change to 15 days
├─ Running low threshold: Change to 45 days
├─ Overstocked threshold: Change to 120 days
└─ Reason: Good starting point for most
Step 3: Configure Grading
├─ Calculation period: Select 90 days
├─ Grading method: Select "Revenue"
├─ Grade A: Keep at 80%
├─ Grade B: Keep at 15%
├─ Grade C: Keep at 5%
└─ Note: Takes effect next day
Step 4: Configure Daily Sales
├─ Look-back period: Select 90 days
├─ Calculation: "7-day rolling average" (if available)
└─ This smooths out daily variations
Step 5: Save All Changes
├─ Click: "Save" or "Apply"
├─ Confirmation: Should appear
├─ Wait: For confirmation
└─ Settings now active
Step 6: Verify Changes
├─ Go to: Inventory Table
├─ Wait: 5-10 minutes (refresh)
├─ Check: Status indicators updated
├─ Look for: Products now showing "Running Low", "Overstocked"
├─ If correct: Configuration successful!
└─ If not: Review settings again
Part 4: Fine-Tuning Over Time
When to Adjust
After initial setup, monitor and refine:
After 2 weeks:
├─ Check: Are "Running Low" alerts appearing when expected?
├─ Check: Are "Overstocked" alerts appearing when expected?
├─ If early: Thresholds too aggressive
├─ If late: Thresholds too conservative
├─ If right: Keep them!
After 1 month:
├─ Check: Grades making sense?
├─ Check: Are top sellers marked Grade A?
├─ Check: Are slow movers marked Grade C?
├─ If yes: Grading is right
├─ If no: Adjust method or period
After 3 months:
├─ Check: Have you learned your lead times?
├─ Check: Do you know your risk tolerance?
├─ Check: Ready for product-level customization?
├─ Action: Adjust lead time per supplier (if needed)
├─ Action: Create custom settings for critical products (if needed)
└─ Goal: Highly personalized system
Adjustment Examples
Example 1: Lead Times Are Different Than Expected
Situation:
Your supplier takes 20 days, not 15
├─ "Running Low" alerts happening too late
├─ You're stockouts happening
└─ Need to react faster
Solution:
├─ Increase global lead time: 15 → 20 days
├─ OR: Set custom lead time for that supplier
├─ Effect: Earlier warnings when you need them
└─ Result: No more stockouts
Example 2: You're Always Overstocked
Situation:
Set overstocked threshold at 120 days
├─ Many products showing "Overstocked"
├─ Storage space is tight
├─ Capital tied up unnecessarily
└─ Need to order less
Solution:
├─ Lower overstocked threshold: 120 → 90 days
├─ Effect: Fewer products marked overstocked
├─ Action: Slow down ordering earlier
└─ Result: Less inventory, less space needed
Example 3: Running Low Isn't Triggering Enough
Situation:
Set running low at 45 days
├─ Only a few products show "Running Low"
├─ Most products slip to "Out of Stock"
├─ Means threshold is too high
└─ You're not getting warned early enough
Solution:
├─ Increase running low threshold: 45 → 60 days
├─ Effect: More products flagged earlier
├─ Action: Catch them before emergency
└─ Result: Better reorder planning
Example 4: Grades Don't Match Your Reality
Situation:
Set grading to Revenue, 90 days
├─ Grade A includes slow products
├─ Grade C includes new launches (growing)
├─ Doesn't reflect current reality
└─ Need more responsive grades
Solution:
├─ Shorten calculation period: 90 → 30 days
├─ Effect: Recent 30 days more heavily weighted
├─ Result: Faster to change grades
├─ Benefit: Reacts to new launches faster
Part 5: Advanced: Product-Level Customization
When You Need More Control
Beyond global settings:
Global settings:
├─ Apply to all products
├─ Standard approach
├─ Good for most businesses
Product-level settings:
├─ Custom per product
├─ Different lead times
├─ Different safety stock
├─ Different thresholds
└─ For critical or unique items
When to use product-level:
├─ Different suppliers (different lead times)
├─ Critical bestsellers (higher safety stock)
├─ Niche slow-movers (lower safety stock)
├─ Seasonal products (adjusted seasonally)
├─ Products with contracts (committed quantities)
└─ Complex situations needing customization
How to access:
├─ Go to: Product detail page
├─ Find: "Custom Settings" or "Override"
├─ Set: Product-specific values
├─ Effect: Override global settings
└─ Note: Covered in separate guide
FAQ
Q: How often do grades update?
A:
Typical schedule:
├─ Daily: Once per day (usually overnight)
├─ Timing: Often early morning (2-4 AM)
├─ When changed: Takes effect next day
└─ Can't: Force immediate update
Why daily?
├─ Heavy calculation
├─ Across all products
├─ Better to do once per day
└─ At off-peak time
Implication:
├─ Change grading settings today
├─ See new grades tomorrow
└─ Plan around this timing
Q: What if I change settings mid-month?
A:
What happens:
├─ New settings take effect immediately
├─ Grades recalculate next day
├─ Thresholds apply to new alerts
└─ Old status markers update next sync
Example:
├─ Change lead time from 15 → 20 days
├─ Effect: Immediately on new calculations
├─ "Days to Order" recalculates
├─ New "Running Low" alerts based on new value
└─ Existing statuses update next day
Best practice:
├─ Make changes once
├─ Let them stabilize
├─ Don't constantly adjust
└─ Review after 2-4 weeks
Q: Should my settings be the same for all products?
A:
Global settings:
├─ Yes, start with same for all
├─ Easier to manage
├─ Works for most businesses
└─ Recommended initially
As you grow:
├─ Learn your suppliers
├─ Different lead times? Customize
├─ Critical products? Higher buffers
├─ Slow movers? Lower buffers
└─ Then: Use product-level overrides
Recommendation:
├─ Start: Global settings for all
├─ After 3 months: Review by supplier
├─ Customize: As needed
├─ Evolve: Toward highly personalized
└─ Timeline: Gradual refinement
Q: What's the difference between lead time and running low threshold?
A:
LEAD TIME (10 days)
├─ How long orders take
├─ Supplier-determined
├─ Fixed: You can't change supplier speed
└─ Input to calculate running low
RUNNING LOW THRESHOLD (45 days)
├─ When Synplex warns you
├─ Your decision
├─ Can adjust: Based on comfort
└─ Output: Decision point
Relationship:
├─ Lead time: One factor in threshold
├─ Threshold: Also accounts for safety stock
├─ Together: Determine when to order
└─ Example: 10-day lead time + 15-day buffer + urgency = 45-day threshold
You control:
├─ Lead time: Document your supplier
├─ Threshold: Decide comfort level
└─ Both: Optional to customize per product
Summary
Global Insights configuration:
├─ Tells Synplex how YOUR business works
├─ Sets boundaries and thresholds
├─ Personalizes all calculations
└─ Critical for accurate statuses
Four main settings:
├─ Lead time: How long suppliers take
├─ Stock buffer: Safety stock level
├─ Running low threshold: When to warn
├─ Overstocked threshold: When to slow
Grading settings:
├─ Calculation period: How far back
├─ Grading method: Revenue/profit/volume
├─ Distribution: A/B/C percentages
Getting started:
├─ Use recommended defaults
├─ Monitor for 2 weeks
├─ Adjust based on results
├─ Refine over time
Result:
├─ Perfect for your business
├─ Optimal stock levels
├─ Right alerts at right time
├─ Data-driven decisions
Next Steps
- Access Settings - Go to Insight Settings
- Configure Stock Levels - Use recommended starting values
- Configure Grading - Set calculation period & method
- Save Changes - Apply all settings
- Monitor Results - Watch for 2 weeks
- Refine - Adjust as you learn your business
Related Resources
Need Help?
Questions about insights configuration?
├─ Chat: In-app chat (bottom right)
├─ Email: [support@synplex.io]
├─ Response: Usually <24 hours
└─ Available: Mon-Fri, business hours