Saturday, January 23, 2016

Do you know what your Inventory (D)ogs are?

TSH Releases Inventory Management Enhancements 

Image result for inventory dogThe ultimate goal for all distributors is to: 
 Minimize Inventory Carrying Costs While Maximizing Service Levels. 

The well-known ABC classification is simple-to-understand and easy-to-use. However, ABC analysis is based on only single measurement such as annual dollar usage. It has been recognized that other criteria are also important. 

The MDS system now offer multiple methods for finding those "D" or dog items - If they dont make it to the A,B,C levels in your inventory ranking convention wisdom says.... They are your dogs items and should be removed from inventory as they are not making you any money.. 

MDS offer options for: 
Ranking by a Percentage or an actual number I.E Top 100 or Top 10% - whichever makes more sense for your business. 
Each Criteria is then weighted and used to help you determine your items.. 
Criteria offered now include: 

nUnit volume
nSales volume
nGross profit
nCost volume
n#of hits