Friday, January 31, 2014

Keeping Your Inventory Investment Lean and Mean

The largest investment for most distributors is the inventory on the shelves.  Taking the time to make sure it's lean and mean is a great way to keep cash flow moving and keep your business in top shape.

The tools to do this are always evolving and to take advantage of the latest in data analytics,  The MDS Inventory Management system  offers up these new tools.  Using MDS you can use these tools to help calculate what items should be dumped from inventory and help inventory managers make the case that carrying costs of that inventory exceed the potential profit that that might have actually created.

Tools to help you choose what items to make specials or overstock
  • Inventory analysis kpi and item analysis
  • Dead inventory analysis / KPI 
  • Trending items analysis with trendlines for Number of times ordered , gross profit and carrying cost. 

With our advanced inventory analysis KPI you can now see in real time what percentage of sales an item makes up over what percentage of your inventory cost. This will Easily allow you to visualize items that are costing you more to hold then to sell.

Our Dead inventory KPI (Key performance indicator) gives you the ability to see what items that have been sitting on your shelves over the standard movement cycle for an item (example 180 days ). You can view the macro level in dollars or quantity and drill down to see a specific item that is tagged.

Our trending items analysis and kpi gives you to tools to capture and view trends in item movement based upon key metrics such as number of times orders, gross profit by item or overall sales by dollar or quantity.

Contact Us today to learn how to keep your inventory investment lean and mean. 

For more information on TSH or MDS call The Systems House, Inc. at 1-800- MDS-5556.
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