September 16, 2019

What Is ABC Analysis?

ABC analysis is an approach that allows you to assign classes to inventory items based on that items’ consumption value. If you don’t know what that is, consumption value is the total value of an item consumed over a specified time period, which could be a year or month. This approach is based on the… Read more »

September 16, 2019

What Is Just In Time Inventory Management?

Inventory management plays a key role in all areas of your business. Just in time inventory is no different. Just in time inventory, also referred to by JIT inventory, is the reduced amount of inventory owned by a business after it installs a just-in-time manufacturing system. This type of system is a term defined as… Read more »

September 11, 2019

What Is Wholesale Distribution?

If you’ve ever shopped on the internet to buy a product, it’s highly likely the product you purchased wasn’t produced by the retailer you purchased it from. Many businesses throughout the world use wholesale distribution sources to buy products in bulk (usually discounted) and they turn around to sell them to customers. Product supply chains… Read more »

September 7, 2019

What Is A SKU In Retail?

If you can’t track it, you can’t measure it. For retailers, tracking inventory, sales and key retail KPIs are invaluable for success. Speaking of inventory, how do retailers keep track of all their products? Well, they use coding systems to keep track of their inventory and to measure sales. These codes are extremely important and… Read more »

September 3, 2019

Calculating Your Breakeven Point

Having the ability to calculate your breakeven point is very important. After all, every unit sold afterward is profit, it’s a very important business metric. Once you know the fixed and variable costs for the product your company produces, you can then use that information to calculate your breakeven point for that specific product or… Read more »

August 30, 2019

Inventory Carrying Cost Formula

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 »

August 27, 2019

What Is Days Sales In Inventory (DSI)?

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 »

August 24, 2019

Retail KPIs: Where Should I Focus My Attention?

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 »

August 20, 2019

Retail POS: What Features Do I Need From Our Retail POS System?

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 »

August 17, 2019

Inventory Turnover Ratio Formula

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 »