Inventory analysis is a vital tool for managing your stock and improving your cash flow. It helps you identify which items are selling well, which ones are not, and how to optimize your inventory levels. In this article, you will learn how to use inventory analysis to identify slow-moving inventory, why it matters, and what actions you can take to deal with it.
Slow-moving inventory is any item that has not sold within a certain period of time, usually defined by your industry or business model. For example, a clothing retailer might consider inventory slow-moving if it has not sold within a season, while a hardware store might have a longer time frame. Slow-moving inventory can indicate low demand, poor quality, outdated design, or high price, among other factors.
To identify slow-moving inventory through inventory analysis, categorize products based on their sales velocity and importance, using methods like ABC analysis. Monitor historical sales data, stock turnover ratios, and lead times for reordering to pinpoint items with low turnover rates. Utilize inventory management software for real-time insights and consider seasonality when analyzing inventory. Implement strategies such as discounts or promotions to move slow-moving items, collaborate with sales and marketing teams for market insights, and regularly update your analysis to adapt to changing conditions. These steps help businesses optimize their inventory management and make informed decisions to address slow-moving inventory efficiently.
Una de las actividades que debe hacer un Manager de tienda o de producción es la evaluación de los inventarios de manera regular incluso debe estar dentro de los KPIs de gestión, es importante tener un objetivo por categoría o por artículo
Slow-moving inventory can have a negative impact on your business performance and profitability. It can reduce your inventory turnover ratio, which measures how efficiently you sell and replace your stock. It can also increase your inventory holding costs, which include storage, insurance, maintenance, and obsolescence. Moreover, it can tie up your working capital, which limits your ability to invest in new opportunities, pay off debts, or cover unexpected expenses.
Afecta directamente a los ingresos y el costo de ventas , muchas veces ese inventario ya está pagado y no se ha podido vender , esto afecta en la rentabilidad y si es perecedero afecta más porque está el factor de las caducidades.
One way to measure slow-moving inventory is to use the ABC analysis method. This method categorizes your inventory items into three groups based on their annual sales value: A, B, and C. A items are the most valuable and represent about 80% of your sales value and 20% of your inventory quantity. B items are the moderately valuable and represent about 15% of your sales value and 30% of your inventory quantity. C items are the least valuable and represent about 5% of your sales value and 50% of your inventory quantity. By using this method, you can identify your C items as your slow-moving inventory and prioritize them for further analysis and action.
Calculate the inventory turnover ratio by dividing the cost of goods sold (COGS) by the average inventory. Set thresholds based on industry benchmarks or historical data and categorize items into fast-moving, moderate-moving, and slow-moving. Use methods like ABC analysis, examine the age of inventory, and evaluate sales trends to identify items with consistently low sales. Compare actual order quantities with the Economic Order Quantity (EOQ) and utilize stock-to-sales ratios. Leverage inventory management software for efficient tracking and seek customer feedback to understand demand. Regularly review and adjust criteria based on changing market conditions, helping businesses make informed decisions to optimize inventory management.
Once you have identified your slow-moving inventory items, you can analyze them further to understand why they are not selling and what you can do to improve their performance. To do this, you can review sales trends and patterns over time, compare them with sales forecasts and goals, and assess customer feedback. Additionally, you can generate inventory reports that show the quantity, value, location, and age of your slow-moving items. This will help you monitor your inventory levels and optimize your inventory allocation. Lastly, tracking and measuring inventory key performance indicators (KPIs) such as sell-through rate, stock-out rate, gross margin, and return on investment can help you evaluate your inventory performance, efficiency, and profitability.
To analyze slow-moving inventory, start by identifying such items using turnover ratios and categorization methods. Review historical sales data to understand patterns and assess the age of inventory. Evaluate demand fluctuations, economic factors, and supplier performance associated with slow-moving items. Consider adjusting prices, reviewing storage costs, and implementing promotions or bundling strategies to stimulate sales. Monitor customer feedback, collaborate with sales and marketing teams, and adjust procurement practices based on the analysis. This comprehensive approach helps businesses identify the causes behind slow-moving inventory and implement effective strategies for improved inventory management and overall efficiency.
Based on your inventory analysis, you can decide how to deal with your slow-moving inventory items. Discounting, marketing, repurposing, donating, and liquidating are all strategies you can use. Discounting can help attract customers and increase sales, but be careful not to erode your profit margin or brand image. You can also improve your marketing efforts by using different channels and methods to showcase your items. Repurposing your slow-moving items can make them more appealing or useful, and donating them to charitable organizations or causes can help reduce inventory holding costs and enhance your social responsibility and reputation. Lastly, you can liquidate your slow-moving items by selling them to third-party buyers; however, you should be prepared to accept a lower price and lose control over your items.
En los ERP o en los análisis que se realicen dentro de la empresa debe de haber alertas que te indiquen la rentabilidad de los inventarios , puedes trabajar con devoluciones de productos con los proveedores o iniciar esquemas de remates cuidando el margen.
Cuando se intentan todas las opciones para mover el inventario y aunque se den descuentos no es posible vender la opción es directamente donar o enviar a destrucción para “sanear” el inventario, esto ya pasa cuando se tiene slow move muy antiguo y obsoleto.