![]() Cost of Goods Sold (COGS) COGS = (BOP Inventory + Net Purchases + Cost of Labor + Materials and Supplies + Other Costs) - EOP Inventory Average Unit Retail (AUR) Sales AUR = Net Sales $ / Units Sold Inventory AUR = Retail Inventory / Units OH The average amount you've paid per unit of inventory. Average Unit Cost (AUC) Sales AUC = COGS / Units Sold Inventory AUC = Inventory at Cost / Units OH This gives a good sense of the customers' appetite to spend per visit at your store or website. The average amount a customer spends on a transaction. Average Order Value (AOV)Īlso known as Average Transaction Value (ATV) AOV = Net Sales / Number of Transactions APW is an indicator for the rate of sale (or velocity) of a particular item, and can be used to predict how much that item is going to sell in the near future. Number of units sold for an item over a specific period of time. Average per Week (APW) APW = Gross Sales Units/ Number of Weeks The average dollar transaction during a period of time. Sales Metrics Average Dollar Sales (ADS) ADS = Net Sales $ / Number of Transactions (Pro tip: Keep this page bookmarked so you can get a quick refresher whenever you need!) If you're unsure what some of these terms mean, check out our list of basic retail terms to know to refresh your knowledge. This sensitive and explosive combination means that, plain and simple, moving products around has become increasingly expensive, and the margin for supply chain and inventory management errors has fallen to near zero.These formulas will help you evaluate your sales and inventory utilization, so you stay on top of your merchandise planning. Traffic in ports increased sharply in 2021, following a counter-cycle decay in 2020, coupled with an exponential increase in container prices (fivefold increase per 40ft container comparing with January 2020). However, behemoths such as worldwide supply chains and logistical plans do not change overnight, and significant delays started to appear on the supplier’s end of these supply chains. Swiftly the economy gained traction and sped up again: customers were eager to taste life back as they used to, and soon there was another boost in demand. ![]() And then, just as quickly as they were imposed, thanks to herculean scientific, medical and logistical efforts, lockdowns and travel restrictions were lifted, almost worldwide. Parallel to this, COVID-19 cases rose at alarming speeds, meaning that suppliers and industries frequently found themselves with capacity limitations due to worker shortage, thus struggling to meet demand. Many retailers and shops were not ready for this and lagged in adapting their business and supply chain models to this new reality. This meant that, at a rather sudden pace, customers were locked within their homes, with little to none cultural and recreational events at their disposal and without social gatherings where to spend “play money” – as a whole, the world consumer behavior turned its focus to e-commerce and online retailers. ![]() ![]() The COVID-19 pandemic was unquestionably a catalyst event: the number of factories that stopped production altogether during the first few months of 2020, along with national lockdowns and stay at home government policies brought the world commercial landscape to a halt (like a bright and endearing sidenote, these lockdowns and stoppages also reflected themselves on the environment and pollutant emissions across highly industrialized areas). This combination of factors has multiplied the stress on lean and bare-bones supply chains, creating a dangerous bullwhip effect, leaving impatient customers waiting in lines for products, retailers struggling to retain customer attention and service level goals, and suppliers dealing with insufficient capacity, with only a key question in common: how will it be from now on? But to understand where we are going, we must first question ourselves: how did we get here? The global supply chain as we know it has been exposed to its weaknesses in the recent past – whether because of a never-before/seen global pandemic, surging e-commerce demand or dynamic labor and social fabric, the challenges we are currently facing seem insurmountable and overwhelming.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |