Three Ways Buying Inventory Through Spreadsheets Costs You Money

Man upset on the phone at his desk

“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!

Share article:

Share on facebook
Share on twitter
Share on linkedin
Share on email
Dan Kiefer
Dan Kiefer
VP of Solutions

Share article:

Share on facebook
Share on twitter
Share on linkedin
Share on email

More Articles

Toilet Paper Shortage

Are you out of toilet paper? Me too! And so is every store in town. But why? Let’s face it, on the list of things you NEVER want to run out of, Toilet Paper is pretty high on most consumers’ lists. But the multiple shortages of 2020 are not just because some people are buying enough for an entire NFL team. At K3S we are inventory experts and we wanted to explain what’s REALLY going on.

Read This Article »
Shark with white chalkboard that reads "What's Eating Your Profits?"

Are High Turns Killing Your Profits?

For years, finding the most successful distributor was easy. All you had to do was look at the number of times each year they turned over their inventory. The more their inventory turned, the less they were paying in carrying cost. The less they paid in carrying cost, the more profitably they could operate.

Read This Article »

Register for our mailing list

By signing up, you agree to our terms and privacy policy

Are You Ready To Buy Smarter?

Complete Inquiry

We want to know more about your business. Complete the get started form to see how we can help you achieve your goals.

Schedule Consultation

Once you complete the inquiry form, we will schedule a call to review your situation and your questions.

Get Results

After our consultation call, we will crunch the numbers and present the results you will reach working with us.

Are you ready to test your ability to buy?

See how well you can buy one product by hand as a warehouse distributor.