1, inventory turnover rate
Inventory turnover rate is one of the key indicators to evaluate the effect of inventory management. It represents the speed at which an enterprise converts inventory into sales in a certain period of time. A high inventory turnover rate usually means that the inventory funds are used effectively, and at the same time, the risk of slow sales and excessive inventory is reduced.
2. Close to effective inventory
Fast-expiring inventory refers to the inventory products that are about to expire or close to the shelf life. Too much recent inventory may mean poor sales or improper inventory management, which increases the cost of waste disposal and the risk of capital loss. Therefore, evaluating the quantity and proportion of recent inventory is helpful to determine the effect of inventory management and product sales.
3. Inventory of defective products
Defective stock refers to the stock with quality problems or unqualified products. Excessive inventory of defective products will increase the after-sales service cost, return rate and the risk of brand reputation damage. Therefore, it is very important to evaluate the quantity and causes of defective inventory and take corresponding improvement measures to improve inventory health.
4. Other non-performing inventories
Other non-performing inventories include damage, loss, inventory surplus and other non-performing inventories. These bad inventories will waste enterprise resources and increase costs. It is of positive significance to evaluate the situation of other bad inventory, analyze the reasons and take corresponding management measures to improve the efficiency and health of inventory management.
Other factors affecting the inventory situation:
1, inventory amount and sales ratio
Evaluating the ratio of inventory amount to sales can reveal whether the enterprise's capital allocation is reasonable and whether the inventory scale is appropriate. A high inventory amount may mean too much inventory, resulting in too much capital occupation, while a low proportion may mean insufficient inventory, which may not meet the needs of customers.
2, inventory turnover days
Inventory turnover days refers to the average time required for an enterprise to turn inventory into sales. The short turnover days show that the inventory can be quickly turned over and utilized, which embodies the agility and efficiency of enterprise inventory management.
3. Inventory cost
Inventory cost includes purchase cost, storage cost, logistics cost, insurance cost and other expenses related to inventory. Evaluating inventory cost can help enterprises understand the economic benefits of inventory management and find ways to reduce costs and improve inventory health.
4. The relationship between inventory and supply chain
The coordination and cooperation between inventory and supply chain is very important for inventory health. The effective management of supply chain can realize the timely supply and flow of inventory, reduce inventory level, reduce inventory risk and the possibility of excess inventory.