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Inventory carrying cost, also referred to by carrying costs, is a term used in accounting that identifies all business expenses related to storing and holding unsold goods. This total figure would include all related costs of warehousing, salaries, transportation, handling, taxes, and insurance as well as depreciation, shrinkage, and opportunity costs. If you’re a retail… Read more »

The financial ratio days’ sales in inventory (DSI) tells you the number of days it took a company to turn its inventory, also known as inventory turnover. This ratio would also include goods that are in progress of being sold. Keep in mind that a company’s inventory will change throughout the year, and its sales… Read more »

When it comes to the retail industry, there’s a number of retail KPIs you could be tracking. Ultimately, your biggest KPI has to be sales, right? After all, if you’re not making sales, you’re not going to be in business long. Even though sales are a key KPI, there’s a number of different retail metrics… Read more »

The retail industry has been experiencing a big power shift over the last decade, from the retail side to customers. If your retail business is not customer centric in 2019, you could find yourself struggling. How do you gain that advantage in your retail business? POS of course. Think about it, how easy is it… Read more »

The inventory turnover ratio is an efficiency ratio that shows you how effectively inventory is being managed by comparing cost of goods sold with average inventory for a period. This metric measures the amount of times average inventory is “turned” or sold during a period. In short, it measures how many times a company sold… Read more »

Retail forecasting can be tricky if you don’t know how to do forecasting or you don’t have the technology to track your retail data. Fortunately, we have some amazing software and tools to help you accurately track your POS data. With POS data on hand, you’ll be able to create retail forecast for your business.… Read more »

Distribution refers to the process of selling and delivering products or services from manufacturer to customer. As companies grow, it becomes vital to improve your distribution to ensure that everyone in your distribution channel is happy. Depending on the network of your distribution channel, there can be many people and strategies involved in a company’s… Read more »

Safety stock is a retail term used to refer to an additional quantity of items help by a company in inventory to reduce the risk of being out of stock. In a perfect world, we would never run out of stock. Unfortunately, it’s not a perfect world and at some point, it can happen to… Read more »

Reordering products are easy, right? Well, not so fast. When it comes to determining reorder points, there’s a lot you have to consider. This is why many retailers use a reorder point formula. If you don’t know what a reorder point formula (ROF) is, it’s defined by a specific time for you to order new… Read more »

Ever heard of the phrase, “the numbers don’t lie?” If something feels “off” in your business, the first order of business is looking at your retail metrics. When it comes down to brass tacks, for any retailer big or small, your numbers don’t lie. Your numbers give you the cold hard truth (good and bad)… Read more »