Does This Describe You?- You've worked hard to improve your turn, but now you've hit a plateau.
- You don't know how fast you should be turning your inventory but it's got to be faster than you are.
- Your accountant says your inventory isn't as productive as it should be.
- You've heard of GMROI before, but don't know what is or why it's important.
Two Measures of Inventory Productivity
If you're like most retailers, inventory makes up as much as 80% to 90% of your assets. Sales, profitability, and cash flow are directly related to the productivity of that inventory investment. And the two most important measures of inventory productivity are inventory turnover and gross margin return on investment (GMROI).
Retail Inventory Factors Which You Control
Inventory productivity is derived from sales, margins, and inventory levels. It's a function of a number of factors you have direct control over, including sales forecasts, inventory levels, the breadth and depth of product assortments, merchandise display requirements, purchasing patterns, and initial markup, markdown, and clearance policies.
Drive Your Inventory Turnover and GMROI
We'll take the time to listen to you to learn what makes your business unique, and why you think your inventory isn't generating the return it should. We'll take a look at everything that impacts inventory productivity, and recommend steps to get inventory turnover, GMROI and productivity moving toward your goal. We'll help you implement those recommendations, and we'll help you monitor your progress along the way, until your inventory is producing like clockwork.
Ready to get started? Contact us now to discuss your inventory turnover and GMROI needs.