1. Inventory Turnover
High turnover means your business’s products sell fast, and low turnover means product moves off the shelves much slower. If you’re experiencing low turnover, you may be ordering too many items, causing slow-moving inventory or your business inefficiency.
2. Sales Ratios of Products in Stock
Average sales days can vary from business to business or product to product. As a general rule, low sales of a product within 6 months means low demand for the product. If there are differences in the shelf life of your inventory items, you have slow-moving inventory.
3. Retention Costs in Inventory Management
This is the cost a business incurs when storing stock and can include storage, personnel, maintenance, insurance, security or the total cost of capital for the business.
Inventory costs may seem insignificant at first glance, but can lead to huge losses. An under-demand product not only hurts sales, it can also create costly inefficiencies when moving it from the supplier to your warehouse.
4. Determine Gross Profit
After penning all costs, determine your current gross profit. This is the price of a product minus the cost of producing, holding, and selling that product. When determining slow-moving products in inventory tracking, it’s important to see how costs affect the selling price and what that does to customer demand.
5. Determining Products to Sell
Using short-term and long-term historical data will help you discover patterns in your inventory. You can compare inventory turnover rates with increases in customer demand, whether seasonal or general trends. Knowing your item’s gross profit, inventory costs, and seasonal flows will help you determine which item is undersold and enable you to make informed decisions.
Track Your Inventory With Metrik
You can do a lot in your inventory management with Metrik.
Some of the features are;
- Avoid Complexity with Metrik:
- Easily find thousands of items by organizing them into categories. Get detailed analysis by size and color in your inventory system.
- Increase Efficiency with Inventory Alerts:
- Inventory alerts keep you one step ahead. Set up alerts to notify you when products are running low. Create and automatically send purchase orders to your suppliers. Track last year’s sales averages to further fine-tune your inventory and ordering process.
- Scan and manage your inventory more efficiently than ever before.
- Use your phone as a handheld inventory management tool to ensure accurate inventory records.
- Seamlessly synchronize your Metrik application on your phone with the SambaPOS reports menu.
Our inventory management app will minimize your waste and maximize your profits, ensuring you have everything you need to delight your customers. Future-proof your business with Metrik, including sales summaries, hourly sales, complete order history and detailed payment summary reports.