The Inventory performance report helps you quickly confirm which products, brands, suppliers, and outlets are giving you the best return on your investment. So you can focus on what’s working and less on what isn’t. You can use this report to:
- Consider changes to your product range. Confirm what your gut is telling you about which products and brands bring in customers so you can put more profit in your pocket.
- Prepare for a bulk or seasonal purchase of products. Analyze the past performance of similar products to optimize your future orders.
- Plan your promotions. See where you’re overstocked to figure out which products might need a helping hand to move them on.
What can it tell you?
The report combines your Inventory levels, Sales information and some key performance indicators to help you discover which stock is flying off the shelves and what needs attention.
- Closing inventory. Your Inventory at the end of your selected date range. If that is today then it equals your current stock on-hand.
- Gross profit. The total profit you made (Revenue - Cost of goods sold = Gross profit). This is sorted by most to least so you can see what is putting the most money in your pocket. NOTE: Gross profit relies on you recording your product costs in Retail POS, otherwise it will be the same as your revenue.
- Items sold. The total items you sold in your selected date range.
- Items sold per day. The average daily sales in your selected date range. This lets you look at the rate a specific product has sold in the past. If you need to compare recent spikes in sales or understand how something performed last season, use this to confirm your gut feeling. (Items sold / No. of days in selected period = Items sold per day).
- Sell-through rate. This tells you the rate you are selling your inventory. A high sell-through rate means items are flying off the shelves and might need to be replenished. A low sell-through rate means items are sitting around and tying up your cash.
- Days cover. This tells you where you might be over or understocked. It looks at your items sold per day and your closing inventory to calculate how many days it will take to sell out.
- Inventory cost. This is an indicator of how much cash you have tied up in your Inventory. (Average cost x Closing inventory = Inventory cost).
- Retail value. This tells you how much potential revenue your inventory could make. Use it to help plan upcoming promotions, insurance claims and merchandising. (Full retail price of Products x Closing inventory = Retail value).
Check out how you can customize your inventory reports.
Tips on using the performance report
Focus on what your customers love
Go to Reporting > Inventory reports and select the Performance tab. Add the optional measure Customer count (click + on the right side of the report table to access additional measures). Once the report displays, click on underlined column names to sort by that column. Now you can see how many unique registered customers bought the product in the selected period.
Take a look at what’s not going well
It can be a job you put off but everyone has some purchases that just don’t work out. Take a look at the bottom performers in your store by changing the way they are sorted to ascending (i.e. smallest first). Click on the Gross Profit column header to switch between showing the highest contributors first or the lowest. This works for any of the underlined columns.
Think about introducing a different way of selling these poor-performing items or maybe a promotion to move them along. Then you can invest your money in something else.
Investigate a whole category or brand
If you want to do a comprehensive review across categories or brands then start at the top before you dig deeper. Change the Report type to Brand or Product type to compare them and then add filters to follow your nose and focus on the performance of specific brands or tags.