A perpetual inventory management system tracks your stock level, so that you can take the guesswork out of how much inventory you’ll need the next time you place a purchase order. Whether you’re receiving shipments, scanning barcodes, or entering SKUs, reducing the opportunity for human error by integrating your inventory tracking into your point of sales means that you’re getting an exact account of your current stock levels.
KPIs to Measure Your Inventory Management
Inventory Turnover Ratio = Cost of Goods Sold / (Beginning Inventory + Ending Inventory)/2
A high turnover rate means your business is selling products as quickly as they come in and a low turnover rate means that product is much slower to move off the shelves.
Days Sales in Inventory = The number of days in a year (365 or 360 days) divided by the inventory turnover ratio.
This tells you the average number of days it takes for your business to sell the average inventory held over a specific time period.
Holding Costs = Multiplying average inventory level by per-unit annual holding cost, where the average inventory level equals order quantity divided by 2.
This is the cost a business incurs from storing inventory. This could include the cost of storage, depreciation, staffing, maintenance, insurance, security, and the overall cost of capital for the business.
With Revel Systems you can track current inventory at the granular level, calculate waste-loss variance, and customize low-stock thresholds and reorder reminders. Future-proof your business with Intelligent Reporting including, sales summaries, sales by hour, product mix summaries, complete order history and detailed payment summary reports.