“Too much inventory costs you money. Not having enough, will cost you customers.”~Rick Fine, President of Duncan Supply
The most efficient, effective, and profitable distributors use an advanced inventory package to help them purchase their inventory because it makes a tremendous difference in their bottom line!
Maybe you know that purchasing with spreadsheets is not the best way, but you do not know why.
The challenge comes when you are trying to determine the right amount to buy because let’s face it, you can never honestly know for sure. That is why Demand Forecasting is the first step in buying inventory. When you are forecasting your product demand, it comes down to gathering the data. You will need an accurate demand history for each of your products. How far back do you look when you analyze your product demand? When you get the demand data, what do you do with it?
It can be challenging to consider all of the variables. That is why there are three ways you are losing money by purchasing with spreadsheets:
1. Carrying Too Much Inventory
The cost of inventory is an EXPENSE and carrying too much is EXPENSIVE.
If you are not utilizing the warehouse space you have with the products you ACTUALLY need, then you are throwing away money. Why? Because it costs money to hold and carry your inventory, whether you think you need it or not. Also, if you are using space with products you DON’T need, then where are you storing the products that you DO need that leads you to improve your fill rates?
2. Losing Sales
Are you buying enough inventory to account for your cycle times? Not only will you need to account for demand, but you will also need to consider your lead times and order cycles. The flip side of having TOO MUCH inventory is not having ENOUGH inventory. Knowing the demand is not enough! If you are not ordering enough to cover in the time between orders and the time it takes to ship your product, then you are missing out on sales. We would like to help you do the same. Don’t waste any more time.
3. Wasting Time
Are you exporting data into spreadsheets and using complicated formulas? While this might work for you, it is essentially the LOOONNNNNGGGGGG way to an answer that should take you much less time! Why use complicated spreadsheets, leaving you with a ton of files sitting on your desktop, when you can have it all done automatically in just a few seconds?
At K3S, we help our customers navigate through the entire process of buying inventory which starts with Demand Forecasting. We would like to help you do the same. Don’t waste any more of your time.
With the Inventory GAP Analysis, you will learn more about how you can pick up the tools to:
1. Lower your inventory by 20%.
2. Increase your fill rates (which will lead to you increasing sales).
3. Save your buying team a ton of time!
Stop purchasing your inventory with spreadsheets. If you go with K3S it will literally pay for itself, guaranteed!