In this lesson of Thrive University, we'll discuss how to use metrics to help you determine what to order less or more of, when to order, and how much to order based on sales goals and inventory turns.
Reporting Insights: Using Metrics to Determine Buys
Overview:
Use metrics to determine inventory buys
Inventory is the lifeline for small businesses
It’s important to not only look at individual products, but also at category and vendor level metrics
How to set up Categories
How to set up Vendors
Reports and metrics that can help you determine what to buy LESS of:
If you want to turn products every 3 months, pull a report to show products that haven’t sold for 90 days. Consider not reordering products on that list
The Sell-Through Report shows sales compared to how much was received compared to what’s still on hand
Reports and metrics that can help you determine what to buy MORE of:
Find items that have a high sell-through rate
Populates when items go below your desired PAR or alert level
Helps you look at one category at a time to compare sales and in-stock quantity of items in that category
Reports and metrics that can help you determine WHEN to order and HOW MUCH:
Tells you when you will run out of a product - in 2 days, 2 weeks, 5 weeks, etc.
Use this report to help you decide on PAR or alert levels and create an automatic ordering flow, and/or know how much to order at a time.
If you’re ordering frequently, this report will show you inventory that’s already on its way