Things must be known about the Inventory Analysis Measures

The Sales Inventory Measures:

Before we move into the specific details of Sales Inventory Analysis, measures and metrics, let's first become familiar with the overall concept of performance measurement. And why it is so important to organizational success. Every organization conducts a variety of measurements, but what separates the successful from the not so successful approaches is the level of thought and deliberation. This goes into designing and implementing the right measurements to focus on the right things. This is especially true when it comes to inventory systems and processes; without proper and effective inventory metrics the organization is, for practical purposes, operating blind and potentially creating negative financial consequences

Benefits:

Some of the benefits an organization will realize from the use of proper Sales Inventory Analysis include:

·         Better oversight and management of inventory carrying costs

·         More efficient processing and delivery of product

·         Improved sales opportunities and delivery times for marketing and sales purposes

·         Improved forecasting and management for manufacturing purposes

·         Better oversight and evaluation of operating costs related to inventory

·         More effective and profitable financial oversight and management

How to use the inventory measures effectively:

Using inventory measures effectively will be your next most important step. It is not enough to just put the measures in place; the organization must also analyze the results and interpret them effectively. This may sound easy enough, but in the real world it is not so simple or straightforward. Effective analysis makes use of data collected to either validate or invalidate the results. It is not about "running the numbers" per sec, but rather about understanding the underlying data, identifying the useful information offered by this data, and then putting that useful information into action in ways that benefit the organization.

Inventory Spreadsheet:

All these inventory measures can be developed using a well-designed inventory spreadsheet allowing you to:

·         Enter test data or your company’s actual data

·         Select various reports with extensive filtering capability

·         Automatically generate well formatted Reports

These inventory spreadsheets should be professionally designed with no extensive spreadsheet knowledge required by the user.