Managing inventory effectively is crucial for maintaining optimal stock levels and ensuring that you can meet customer demand without overstocking. SalesVu offers a feature called "Days on Hand" which provides a stockout forecast by estimating the number of days required to sell the existing on-hand inventory of a product. This estimation is calculated based on the product's historical sales data.
By utilizing the "Days on Hand" metric, you can make informed decisions about reordering products, adjusting stock levels, and preventing potential stockouts. This guide will walk you through understanding the "Days on Hand" feature and how to adjust its settings to suit your business needs.
What is "Days on Hand"?
- Definition: "Days on Hand" represents the estimated number of days it will take to deplete your current inventory of a specific product, assuming that future sales will follow the historical sales pattern.
- Calculation Basis: The estimation is calculated from the product's historical sales data over a specified period, defaulting to the last 90 days. You can adjust this period to consider sales data up to the past 180 days.
- Purpose: This forecast helps you anticipate when a product might run out of stock, allowing you to plan replenishment accordingly and avoid stockouts.
Adjusting the "Days on Hand" Calculation Period
You can customize the period over which the historical sales data is considered for the "Days on Hand" calculation. By default, SalesVu uses the last 90 days, but you can adjust this setting up to a maximum of 180 days.
Step-by-Step Guide to Adjust the "Days on Hand" Settings
Follow these steps to adjust the "Days on Hand" calculation period:
Step 1: Log in to SalesVu
- Open your web browser and navigate to SalesVu.com.
- Enter your credentials and click "Login" to access your account.
Step 2: Navigate to the Inventory Section
- On the left-hand side menu, click on "Inventory".
- This will take you to the "Manage Inventory" page, where you can view and manage your inventory items.
Step 3: Access Inventory Settings
- On the "Manage Inventory" page, look to the top right corner for an arrow-down icon (it may resemble a gear or settings icon).
- Click on this arrow-down icon to reveal a drop-down menu.
- From the drop-down menu, select "Settings".
Step 4: Adjust the "Days on Hand" Calculation Period
- A Settings pop-up window will appear.
- Look for the setting labeled "Number of days of average sales to calculate 'Days on Hand'".
- By default, this value is set to 90 days.
- Click on the input field and enter the desired number of days you want to use for the calculation. You can choose any number up to a maximum of 180 days.
- Example: If you want to consider sales data from the past 120 days, enter "120".
- After entering the new value, click "Save" to apply the changes.
Step 5: Verify the Changes
- After saving the new setting, you will return to the "Manage Inventory" page.
- The "Days on Hand" column is displayed by default in the inventory table.
- If you don't see the "Days on Hand" column, you may need to scroll to the right to locate it.
- The values in this column should now reflect the updated calculation period based on your new setting.
Understanding the "Days on Hand" Data
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Interpreting the Values:
- A higher "Days on Hand" value indicates that you have sufficient stock to last for many days based on historical sales.
- A lower value suggests that you may run out of stock soon and might need to reorder.
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Using the Data:
- Reordering Decisions: Use the forecast to determine when to place new orders with suppliers.
- Inventory Optimization: Adjust stock levels to reduce carrying costs while ensuring product availability.
- Sales Strategies: Identify slow-moving items with high "Days on Hand" values and consider promotions to boost sales.
Additional Tips
- Regularly Update Settings: Review and adjust the "Days on Hand" calculation period periodically to account for changes in sales patterns, such as seasonal fluctuations or promotional periods.
- Monitor Trends: Keep an eye on products with rapidly changing "Days on Hand" values, as this could indicate shifts in demand.
- Combine with Other Metrics: Use the "Days on Hand" forecast in conjunction with other inventory reports and analytics available in SalesVu to get a comprehensive view of your inventory health.
Conclusion
The "Days on Hand" stockout forecast is a valuable tool in SalesVu that helps you manage your inventory proactively. By understanding how to adjust the calculation period and interpret the data, you can make informed decisions to optimize stock levels, reduce costs, and enhance customer satisfaction by preventing stockouts.