Your company exists in a huge sea of competition. Industry comparisons take metrics, such as your turnover rate or cycle time, and compare them with other businesses in your industry. Determining how your metrics compare to your competitors’ gives you a way to judge whether your inventory control meets the industry norm, falls short or surpasses it.
The Item Fill Rate is the percentage of items a customer ordered that your company was able to ship. The lower the ratio, the poorer your inventory performance. You should track not only the fill rate for each individual order but the fill rate for all orders – what percentage of orders go out completely filled, and what percentage have items missing.
The Lost Sales metric indicated the number of your potential customers that ask for an item and then go elsewhere because you do not stock it. Companies that use this metric usually track back orders – reserving part of the next scheduled shipment for the customer to purchase – as well as lost sales. Using both metrics will give you an idea of the gap between your inventory and your customers’ needs.
Several metrical considerations are of paramount importance to how well your stock management is handled. Your best system should take into consideration a wide array of avenues for improvement, considering the best metrics in a variety of areas.
Along with accurate stock counts, inventory turnover tracking and accurate cycle times the above metrics will help you gain control of your comprehensive inventory management. SIMMS Inventory Management software provides all the tools that you will need to hold the lead over your competitors. Visit www.simmssoftware.com or email email@example.com today to find out how.
Or for a free trial version of SIMMS 2018, click here: http://simmssoftware.com/inventory-software/Download-Trial.aspx