We’ve been helping dealerships for over 20 years to increase their inventory productivity resulting in better turns, higher fill rates, and an efficient, profitable parts department. If you’d like some assistance finding and interpreting your inventory turns or fill rate, send us a message. Learn more about how to increase your fill rate on our blog. Bringing your fill rate up automatically helps your turns as it means the parts you have been selling. Your fill rate tells you which sales come from inventory vs. To improve your turns, keep an eye on your fill rate. Decrease Storage and Related Expenses: Avoid keeping more inventory on hand than you need, which will lower storage and related costs. Less slow-moving inventory means less capital wasted and fewer parts catching dust on shelves. Here are more details on some primary goals of inventory analysis: Increase Profits: Keeping the right amount of inventory on hand to grow sales while reducing expenses will increase profits. Factors such as manufacturer, sales volume, or the amount of idle capital in inventory will often bring the turns higher or lower! The gold standard number is to be somewhere between 6 to 8 inventory turns per year. To calculate this, you divide yourĬost of Goods Sold into your Month End Close Inventory Value.ĭealership turns can vary. Your inventory turns are a ratio that expresses how often your entire inventory is completely sold in a year (though some parts may stick on shelves longer than a year, another great reason to keep a handle on your obsolete inventory). Here are the basic calculations to get you the number you need. Finding your inventory turns can be simple or complex, depending on your DMS. Calculating your parts inventory turns is fundamental for creating a healthy, profitable inventory. In the over 20 years we’ve been helping dealerships optimize their inventory one thing has always proven to be true: a data-driven inventory is a successful inventory.
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |