In addition to the risk of overstocking, the more difficult problem of inventory management is the out-of-stock problem caused by untimely replenishment. Novice sellers often encounter the problem of inventory backlog, so the monitoring of inventory data should be timely. Only in this way can timely measures be taken to deal with and adjust, effectively reduce the risk of inventory backlog and improve the inventory sales ratio.
Inventory management generally analyzes the inventory of three major categories of products, namely profitable products (key commodities), drainage products (ordinary products) and unsalable products.
① Inventory turnover summary table
Setting up a good inventory turnover summary table can effectively improve the management of inventory product turnover days. According to the product sales situation, it can be clear whether the product needs to be cleared or replenished. Hold an inventory communication meeting every month to communicate inventory issues and find targeted solutions.
In: According to the monthly and daily average sales data, combined with market conditions, formulate a procurement plan; track supply chain information to ensure that the product is in stock and sent to overseas warehouses as planned.
Sales: According to the daily profit table, dynamically pay attention to product sales.
Inventory: Inventory turnover monitoring, reduce unsalable and avoid out-of-stock or out-of-stock; based on the existing inventory, estimate whether the product quantity can support the next sales task target.
The steps for making the inventory turnover summary table are: on the first day of the month, download the FBA inventory report of each site last month in the sales background, convert the store SK into the system SKU, summarize the inventory data obtained by each warehouse system SKU, and calculate the inventory turnover rate and turnover days of each SKU according to the sales outbound data and in-stock data recorded by ERP through the inventory turnover rate formula; match the SKU cost, calculate the in-stock amount and current in-and-out amount of each product type according to the product cost: analyze the inventory turnover of each product to determine whether there is out-of-stock and stagnation.
② Inventory turnover detailed table
Based on the sales situation and inventory ratio of each stage, you can clearly know the turnover days of each SKU, and then analyze whether the product’s stocking quantity cycle is normal according to the different channels of sea or air transportation and the delivery cycle of the supplier, and set a “warning line”. Through the inventory turnover table, sellers can timely complete the inventory data monitoring of different accounts, different sites, and different products.
Important formulas in inventory management are:
Inventory turnover rate = monthly sales outbound cost minus monthly average inventory Monthly average inventory = (inventory at the beginning of the month minus inventory at the end of the month) ÷ 2
Inventory turnover days – number of days in the month minus inventory turnover rate