Turnover Ratios of Inventory

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Of the many metrics a business can use, one of the most important performance metrics for measuring how your business efficiently manages the quantity-side of their assets and sales equations on a balance sheet is the Inventory Turnover Ratio (IVR). The Inventory Turnover Ratio is derived by calculating the ratio of Cost of Goods Sold divided by the Average Inventory during the established time period (annum, quarter, season, etc.).

In short, the Inventory Turnover Ratio provides insight on how long capital is trapped in the cycle of being used to purchase finished product (or raw materials) for sale through to its sale. Particular Inventory Turnover Ratios differ from industry to industry.  The higher your Inventory Turnover Ratio, the more likely it is that that company carries an excessive quantity of inventory. Cash that is tied up in stock and assets for a prolonged period is referred to as overstocking. Subsequently, the correlation between the company functioning in a cash-poor condition and an elevated Inventory Turnover Ratio is overwhelmingly high.

Depending on individual markets or circumstances, a company can improve its reporting when other performance metrics are graphed on a y-axis along with the Inventory Turnover Ratio over the period of one year (12 months increments). For instance, graphing one product’s gross product margin can give insight into the relationship between the pace at which that product is processed through the warehouse at selected price points. Graphs of monthly revenues generated by a specific product against the Inventory Turnover Ratio supply additional insight in the potential seasonality of an item and thus improve its buying patterns.

It is crucial that buyers, executives, and inventory managers analyze and review any Inventory Turnover Ratios. One of the most useful ways for reviewing IVRs is tracking the ratios at a SKU level – or item type level – then graph the ratio in monthly increments over a one year block of time. This resultant view will help the company to best understand any internal buying cycles or seasonality. One must always remember that the primary aim is to move stock with more speed and to continue the downward pattern in your Inventory Turnover Ratio.

For more assessment of IVRs, visit www.simmssoftware.com or email sales@kcsi.ca today.

KCSI Has Two Positions Available!

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KCSI is now hiring!

We currently are offering two positions with the KCSI Team:

Software Developer
http://www.simmssoftware.com/inventory-software/software-developer.aspx

Software Sales
http://www.simmssoftware.com/inventory-software/software-sales.aspx

To learn more, visit the following URL:
http://www.simmssoftware.com/inventory-software/KCSI-is-Hiring.aspx

You can send your resume and cover letter by clicking here

We look forward to hearing from an interested individual with a goal of excellence and a plan to succeed!

Improving Warehouse Slotting

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Warehouses are complex operations involving interactions between employees, materials, material-handling equipment and storage systems. Your warehouse will likely need to improve the productivity of your consolidation, order picking, put-away, receiving and/or shipping functions. The warehouse may also need to reclaim wasted facility space by analysis and optimization of your product slotting and storage design.

The term ‘slotting’ defines the assignment of products to particular storage locations within the facility to aid in optimizing the utilization of the space available, the efficiency of storage and retrieval, and increases to employee safety.

Many indicators exist that reveal your current product slotting success. They are:

• Availability of space for accommodation of new SKUs;

• Common and recurring ergonomic-related injuries;

• Efficiency of storage space;

• Excessive large facilities and their high costs;

• Productivity of order picking and replenishment is lower than it should be.

There are three main types of information required to perform a slotting optimization:

• SKU Information – Information related to the demand, dimensions, weight and other characteristics of the SKUs in inventory

• Slotting Rules – Establishing the criteria used to implement the improved slotting plan.

• Storage Information – Information related to the existing (or desired) configuration of the picking paths, picking zones or storage equipment

Once an assessment is made of the current situation and the techniques in use, then a serious effort can be made to eliminate the shortcomings one at a time. Checking first that residual effects have not worsened since the single adjustment, you can then proceed with a second adjustment for improvement.

Slotting improvements help you to avoid the cost of moving to larger facilities to handle more SKUs or higher inventory levels, to consolidate the space footprint required by your existing operation, to create more free space for other value-added activities, and to improve the productivity and ergonomics of your replenishment and picking processes. At least twice a year an analysis should be conducted to assess your slotting practices and their possible improvements.

For more information on slotting and other improvements to your warehouse practices, visit www.simmssoftware.com or email sales@kcsi.ca.

Sales Ideas After a Holiday

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Here are a dozen useful ideas for what to do once the holiday rush time has passed:

1. Always Have New Products or Services That Debut After The Holiday. Launch a new product or service to avoid a drop off in sales after the holiday. You can also perhaps give away a new product with any purchase made after the holiday.

2. Check Back With Those Who Bought Gifts. After the holiday, email them suggestions on other items to buy next. Request info about the person they bought the gift for, such as birthday details, and plan to automate email promotions that arrive in advance of the birthday.

3. Continue Holiday Marketing After the Holiday. People are still in buying mode in the week after the holiday, especially the gifts or gift money they received for birthdays, prizes or for Christmas. Keep pushing new deals for a month after the main holiday and many will buy from you.

4. Exercise Social Media.  Reward social-only customers with things like discounts for Facebook friends or Twitter followers.

5. Give Thanks to Holiday and Loyal Shoppers. Send customers who purchased during the holiday season thank-you emails that highlight exclusive offers or targeted deals for a particular period.

6. Offer Discount Coupons. Provide deals that give attractive discounts on a future purchases that go into effect two (or four) weeks following their first purchase. Gift cards towards future purchases can benefit your company’s present and future sales. The wisest discounts are 10 to 20 percent off purchases, or a $10 to $20 gift cards.

7. Promote a Post-Holiday Contest. Endorse an online contest where customers send in photos of wild or wacky gifts they received.

8. Remember the Mobile Shoppers. Provide mobile shoppers with very attractive deals and exclusive items that they can’t find elsewhere.

9. Spark Up Your Remarketing.  Advertising to people who have already visited your business is always appreciated and often draws additional purchases when you promote complimentary products.

10. Stretch Out Your Deals for the Post-Holiday Period. Buy one–get one free deals are always successful. You may want to have the second one ‘half off’ instead but if the deal is for items that are not selling well your discount policy helps you to recoup capital. Clearance sales of seasonal fashions or holiday-themed items give you a chance to move products off the shelves. Another tip is to discount such items if they are sold online, which produces increased traffic for mobile buyers, who might buy more when they visit.

11. Think World-Wide. Increase customer involvement all year round, not just at Christmas.

12. Vacuum Up Any Sales From Shopping Cart Leftovers. Contacted shoppers about residual items in their shopping carts – and maybe offer a deal.

 

Trends in Online Purchasing

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Online spending has increased overall, but has experienced its largest upswing on mobile platforms. Shopping-related search queries from mobile devices are up by almost 60% over the preceding year. People these days seem to be shopping constantly— in the airport, on their lunch breaks, while killing time, while waiting in line and with friends on the bus. They comparison shop while in one store by checking prices in another store.

The term “free shipping” surged last year as a search query, which peaked on Cyber Monday. On mobile devices, it peaked on Black Friday, as in-store customers looked around for comparable deals online. Twenty percent of customers surveyed have said that free shipping is a deciding factor on purchases, therefore businesses can use it to their advantage on big in-store shopping days.

One result of the increase in spending online is that traditional big in-store shopping days provide a widening opportunity to gain holiday sales if your business is present on mobile. Last year, shopping-related searches on mobile devices boomed during key in-store days. The three most successful days for mobile queries were Black Friday, Thanksgiving, and the day after Christmas. Whether shoppers are checking inventory, comparing prices, or hunting for coupons, your business should for providing them in a virtual context wherever they are, based on the shoppers’ individual devices and locations.

A Christmas Inventory…

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On the twelfth day of Christmas, my true love gave to me:

12 orders coming
11 typers typing
10 heapers heaping
9 with financing
8 forks a-lifting
7 bins a-hauling
6 bills of lading
5 golden things
4 dolly loads
3 bent pens
2 storage drums
and a carton left in Bay “C”.

Merry Christmas, everyone :-)

 

The SIMMS 2013 Sales Advantage

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SIMMS 2013 Inventory Management software includes a full suite of modules that are easily customizable to meet a virtually unlimited variety of business needs regardless of your company.

SIMMS is at its core a comprehensive business management solution that delivers the combined benefits of advanced productivity tools and state-of-the-art accounting and manufacturing capabilities that allows users to operate more efficiently and profitably. Some additional features include powerful drill-down capabilities, advanced reporting, phantom kitting and more.

With SIMMS, you can choose the end-to-end business management applications you want from a comprehensive, integrated suite of accounting and manufacturing modules. In addition, SIMMS Inventory Software provides integration with other software in a seamless fashion, and includes customer relationship management (CRM), e-commerce, payroll, and vertical solutions.

Here are some other benefits that SIMMS offers:

– Drop ship easily process orders and have them drop shipped directly to your customer.

Reduce double entry High end functionality like the ability to create sales orders for purchase orders and vice versa all at once save you time and money.

– POS at your outlet can boost by using the SIMMS Point of Sale module. It gives you the till management functionality you need to surpass your competition.

– Stock limit notifications can be set to occur when a sales person attempts to sell an out of stock item. They are prompted with a choice to backorder or to override the alert (provided they have been granted permission to do this). With such permission, you can always select from a list of alternative items to offer the customer, thus enabling the sales person the opportunity to salvage a sale that would have normally been lost due to the item being out of stock.

One the front lines of sales – retail or wholesale – you need the best available combination of tools, personnel and range of capability. SIMMS 2013 has all three. Learn more today by visiting www.simmssoftware.com or email sales@kcsi.ca.

SIMMS 2013 and Apparel

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To stay ahead in today’s apparel industries, companies must retain their lead using technology, innovation and fluid speed. SIMMS 2013 meets these challenges with our leading edge Apparel Inventory solution that will help you compete and grow profitably today and in the future.

Retailers and consumers push for lower prices, better quality and quicker delivery. SIMMS 2013’s Apparel Module is designed to help apparel importers, distributors and manufacturers meet the competitive demands of quick supply demands and limited capital availability.

From data pertaining to the receipt of goods, the movement of goods within or between locations, the sale, removal or other disposition of goods, and the precise valuation and status of goods remaining in inventory at any time, down to the exact style/size/color, SIMMS will enable you to successfully manage your apparel/embroidery inventory.

Our apparel clients include manufacturers, importers and distributors of mens and ladies fashion and sportswear, children’s clothing, leisure wear, lingerie, foundation garments, swim wear, jeans, t-shirts and furriers. SIMMS 2013 has been designed to ensure that your business has timely and accurate information on inventory location, movement and valuation in order to precisely direct and dependable protect your inventory.

Data Conversion Services

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We can import data from an existing database or text file. We can assist you in generating an import file from most systems or do the entire conversion process for you. Consult with your KCSI sales representative or our SIMMS Authorized Resellers to find out how long it will take and the cost involved in converting your data.

At the start of the actual implementation process, data conversion requirements are examined in much more detail in order to develop a data conversion plan and better estimate the hours of effort required. Roles and responsibilities are clearly defined and a detailed data conversion plan is developed. Data conversions are generally completed in two steps: a test conversion of a sample of existing data and a final conversion of live data at the time the new system is going to be used live in production. Data conversion results are verified by customer and KCSI consultants for accuracy and completeness.

When it comes to our data conversion services we work tirelessly not just to make sure that they are of the highest quality, but also that they are easily accessible, always available, and that the entire working process is simple and hassle free so you can always come to us and take advantage of our data conversion services without having to worry about other things.

SIMMS 2013 Prominent Features

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SIMMS 2013 contains the following features that may be crucial to your business:

  • Advanced Shipping
  • Apparel Item Matrix (color/size/style)
  • Barcode Printing
  • Define Automatic Reorder Points
  • Enhanced Shipping Features
  • Inventory Valuation Features
  • Item Code Aliases
  • Item Images
  • Item Kitting (BOM)
  • Manufacturer Lot and Expiration Date Tracking
  • Multi-Currency Ready
  • Multi-level Categories
  • Multiple Warehouses & Picking Locations
  • Multi-tier Stock Areas
  • Physical Count and Audit Trail for Inventory Adjustments
  • Price Levels or Volume Pricing and Discount Configuration
  • Produce customer and/or product specific price schedules
  • Serial Number Tracking
  • Stock Transfers between Locations
  • Storeroom/Warehouse Management
  • Tax Codes and Schedules
  • Unique Vendor Assigned Costing
  • Unit of Measurement Configuration
  • Wireless or Batch Data-Collecting

For versatility, compatibility and comprehensive control, SIMMS 2013 Inventory Management software is the best you can get.

Visit www.simmssoftware.com for more information today.