Often we wonder how to improve our turnover rates, which are the true mark of inventory management success. Having the stock on hand to easily fill any orders made by customers is the ideal, because inventory is only worthwhile if it is available when it is needed, so that the goal of converting it back into capital as soon — and as often — as possible can be met.
Inventory turnover over a specific period of time is calculated by the following formula.
Inventory turnover = Cost of Goods Sold / Average Inventory
Inventory turnover ratios tell you how many times your inventory has sold through. To calculate, take the total cost of goods sold for the year and then divide this by the average inventory. First, choose a period of time to examine. The most practical period for small to medium-sized retailers is one year. Average inventory can quickly be calculated by adding your inventory at the beginning of the period to your inventory at the end of the period, then dividing by 2.
With SIMMS 2013 Inventory Management software you can track the items that sell, as well as the ones that do not, and make quick improvements to your bottom line.
There are several good habits you can begin. Awareness of your inventory, its categories and which items move the best is crucial. Refer to your business plan regularly and build in a policy of stopping to think before you buy items in lot quantities; ordering smaller groups is more tedious, but it also protects your capital against over-extension. Promotions and special processes will help you move your over-stocked goods.
Contact KCSI today to learn more about the advantages that SIMMS can bring to your business.
SIMMS 2013 is an advanced inventory management, accounting and manufacturing software package that provides versatility and comprehensive room for your company’s growth. It’s a fluid system that is easy to set up and easy to use that has quickly become the current best choice for small and large businesses, that will help with increased profits and more fluid productivity.
Whether your company incorporates manufacturing, customer relationship management, accounting, Point of Sale (POS), E-commerce, inventory management, kitting, or project coordination, SIMMS delivers the combined benefits of many advanced productivity tools and coordinates all of your specialized needs. From phantom kitting to coordination of Tool Crib details, from sales requirements to purchasing demands, SIMMS employs the inventory valuation methods you need, and the benefits of customization to distance itself from its competitors and providing you with a greater — and more immediate — ROI (return on investment) than any other accounting/stock software solution.
For you to exceed your own business expectations, you need software that can grow and change with your needs, and SIMMS is not just another out-of-the-box solution that comes with its own stunted growth and limited number of features. It grows with you as you use it, and you deserve the quantitative advantages it provides. For more information on how SIMMS can help you take and keep the lead in your market, visit www.simmssoftware.com or email email@example.com for more information.
When you order inventory, there is always a period when it is unknown how long it will take to make a profit on the item. Planning, no matter how good it is or how accurate the numbers are upon which we base our decisions, is really just speculation. The sooner we can know that we have over-invested in stock, the sooner we can add plans to prioritize the ROI on the items. You need to know what markers you need to achieve. It is always better to suffer a loss early because it gives you more time to achieve the turnover.
You can further help your stock ROI by applying the following principles:
Optimize Your Customers’ Experience by having stock on-hand at the right time and at the right place helps increase sales by reducing missed deliveries and other shipping errors.
Optimize Your Labor by reducing physical inventories, increasing productivity, and increasing product throughput of your storage areas.
Optimize Your Space by organizing stock storage areas and locations within your warehouse. You will save on space and make each square meter of space generate its maximum revenue.
Optimize Your Equipment’s Life by the efficient routing of activity throughout the warehouse and reducing wear and tear on items suck as pallet jacks and forklifts by having them travel as little as possible, setting up drop points for zones, and optimizing your order picking processes.
You should always draw your line in the sand for ROI sooner rather than later. Initially, your ROI should be targeted for no longer than three months from purchase. For ROI realization on virtual things (such as investments in inventory software) you can realistically only place your ROI at the twelve-month range, owing to your natural expectation that you will only be experiencing complete benefits from its use once it has become a familiar and formal habit.
A comprehensive inventory and accounting solution need not break your bank account — in fact, good ones help you profit in numerous ways. One criterion is time — doing the least hands-on interaction puts growth of the business and revenues at the forefront of your day-to-day duties. SIMMS Inventory Management software helps you optimize your manpower investments on the tasks of customer satisfaction while demanding very little time to cross the ‘t’s and dot the ‘i’s.
In concert with time comes accuracy — exactly what you need in the exact location you need it when the customer calls. SIMMS’ multi-location tracking features ensure that customers get the goods they need no matter which location they contact or visit. Rates of consumption, knowledge of levels of stock replenishment and the foresight to know what items are always required comes to every user of SIMMS easily and quickly due to its robust analytics and reporting capabilities.
The third profit requirement of inventory is turnover — turning the stock you purchase back into an increased cash flow as soon as possible. Whether you process large orders or small, or deliver items across a counter locally or ship them internationally, the physical movement of stock is vital to the success of your business. These many orders have to flow efficiently and smoothly, and the versatility of SIMMS is at your command to help you achieve your goals. Clean and quick, easy but precise, SIMMS Inventory Management software is affordable, clean, quick, easy and precise enabling you to break the bank but not break your bank account. Contact us at www.kornyk.com to learn more and run a trial version today.
Most companies have only a set amount of funds to invest in inventory each year. Moving the stock you have is of paramount importance so that you can meet your overhead expenses. The rate at which you sell compared to the rate at which you buy is your turnover rate. The higher the rate, the better it is. With SIMMS Inventory Management software, you can check your item turnovers together or by individual item, and make necessary adjustments to your outlay for goods.
When combined with high ROI and high customer service satisfaction levels, you’ll be well on your way to the level of success you desire. Contact KCSI today to find out more about how SIMMS can help you toward those goals.
Often times after a run on goods that were in great demand during a holiday season, we are left with a great amount of stock we have to reduce in price in order to clear. SIMMS Inventory Management software provides all the tools needed to prepare special offers and schedules for much-needed turnover of inventory into capital. Great profits can be made through structured plans comprised of advertising, proportional price reductions and offer management. Contact KCSI today to find out more about SIMMS’ abilities to help you recover profits in record time.