Do you sell products and manage inventory?
To optimize your production and reduce your costs, you need to know your stock rotation levels.
With the"Inventory turnover rate" app, quickly consult your inventory renewal index, by product, over the course of the year!
Calculate your turnover rates and average shelf life per product.
Activating the app enables access to a new dashboard, displaying information, to date, from :
- Product turnover rate
- Average storage time over a period
This information, once produced, is stored and recalled in the inventory tab on the product sheet.
Go to the app's home page to access the data analysis table.
1. Selection of data for analysis
The app's home page displays :
- A query zone for defining the filters to be applied for the calculation to be performed and stored
- Results in a dashboard of rotations and average storage time
- A data export option in Excel format
The search engine contains the following query filters:
- Warehouse: Single-choice drop-down menu with list of warehouses and all option
- Product: Single-choice drop-down menu
- Product category: Single-choice drop-down menu
- Period: Select start and end dates
- Search" button to launch query
The result is a page containing a list of products, with columns showing the calculated "Turnover rate" and "Average storage duration".
These two query results are then :
- Automatically saved for display in the inventory tab of the product file
- Exportable in Excel format
2. Calculation of turnover rate
Here, the chosen option is to calculate turnover on the basis of stock movements, and not on the basis of the purchase cost of goods or sales.
The formula applied is as follows:
Inventory turnover rate = Number of product withdrawals / ((opening inventory + closing inventory)/2)
In calculating the turnover rate, the "Number of product stock removals" is the sum of removals on sales items only. This number is calculated according to the sales apps installed.
By default and as standard on the software, the following objects are used for inventory movements and are taken into account:
- Quote
- Delivery notes
- Invoices and credit notes
PLUS: depending on the apps installed on the application, and the sales administration process you've chosen, new objects may be added to accommodate stock movements of the output type, such as: order confirmation, intervention order, preparation order, loan order, merchandise return order, etc.
Inventories and movements not linked to sales vouchers are not included in the calculation.
3. Calculation of average storage time
Average shelf life = number of days in the reference period / inventory turnover rate
The average storage time is expressed in days.
4. Display value on product sheet
The app adds a new data display area, on the product sheet in the "stock" tab.
This block, called "Turnover rate", displays information on the item's turnover rate and average storage time.
The information fields in this block are as follows:
- Turnover rate, total and by warehouse (as many fields as warehouses)
- Average storage time, total and per warehouse (as many fields as warehouses)
- Query period to identify the equivalent of the period corresponding to the data.
The information is saved and overwritten each time it is recalculated, to be replaced by the most recent value requested and calculated by an application user.