article, we’ll explore the concept of fill rate, its significance, and how to calculate it. We’ll explore the different types of fill rates and the factors that impact them. Plus, we’ll answer frequently asked questions about fill rate and its relationship with other supply chain metrics...
How to set and measure on-time delivery KPIs The process of calculating on-time delivery is pretty straightforward as it only requires comparing the number of orders delivered on time against the total orders that were shipped out. Here’s the formula to calculate your on-time delivery rate....
Conversely, a low sell-through rate can signal overproduction, poor market demand, or ineffective sales strategies. You want to improve your sell-through rate to avoid overstocking and the associated costs, optimisesupply chain management, and improve your cash flow. How to calculate sell-through ...
Why is sell-through rate important?Your sell-through rate is an important metric for ecommerce businesses. Here are five reasons why it is useful to calculate:Identity popular and unpopular products Mitigate storage costs Optimize supply lines Measure success Manage your cash flow...
Learn how to find beginning inventory, get the beginning inventory formula, walk through an example, and more.
How To Calculate Inventory Turnover? Inventory turnover = Cost of goods sold/Average inventory Please note: COGS comprises direct sales costs such as expenditures, labor, and raw materials, but excludes general expenses such as rent Average inventory for the same period is used For example, if...
By determining how frequently your inventory turns over, you can better assess the health of your business. Learn how to measure your DSI.
The formula to calculate retail price is: Retail Price Cost of Goods + Markup. It’s simply adding a markup, or profit margin, to the total cost of producing or acquiring the product. Picking the right price for your products is an important yet challenging decision that has the potential ...
How do you calculate beginning and ending inventory? The first step to calculating beginning inventory is to figure out the cost of goods sold (COGS). Next, add the value of the most recent ending inventory and then subtract the money spent on new inventory purchases. The formula is (COGS ...
Inventory days on hand is how long it takes to sell a company’s inventory. Calculate days on hand to see where your business can optimize its costs and margins.