Understand which SKUs you are long or short on
The Inventory Dashboard gives you insight into which SKUs you have a lot of (known as "running long"), and which SKUs you are running low on, as well as recent sales velocity. The visualizations contained in this dashboard can help you answer the following questions:
- Do I need to buy more of a specific SKU?
- Which SKUs am I running long on?
- How do I optimize my business based on inventory quantity and sales velocity?
The Inventory dashboard consists of two sections:
This sections consists of two visualizations, the first showing over supplied SKUs (SKUs that you are running long on), the second showing under supplied SKUs (SKUs that you are running short on. The most important column in each table is the final column, Weeks of Supply. In the example above, you'll notice that SKU 120 has 6.29 weeks of inventory supply, while SKU 170 in the visualization on the right has 0 weeks of supply (back order). Both visualizations show units sold in the last 28 days to give you an understanding for how popular that SKU is.
When you are short on a SKU (have too little inventory), consider the following:
- Temporarily raising the price of that SKU if your website is the only place the item is sold
- Demoting the SKU on your site or removing it from high traffic pages
- Removing the item from paid ads and email
- Disabling the SKU on Amazon or other marketplace sellers
Conversely, when you are long on a SKU consider implementing the opposite strategy (lower prices, promote the SKU, etc...). Raising cash and acquiring new customers through the discounting of SKUs you are long on can be a great short term strategy, just make sure you don't repeatedly implement this strategy or you may find your house file is full of customers that only buy when they see heavily discounted items.
Sales Velocity Changes
This section contains two visualizations, the first shows SKUs with the biggest velocity DECREASE in the last 7 days, the second shows SKUs with the biggest velocity INCREASE in the last 7 days.
Consider "Inventory Velocity" as the speed of your inventory being cycled in a specific time period for each item/SKU. If you have an item that is picking up velocity, you'll want to make sure your inventory levels can support the increase.
WHAT ABOUT FUTURE INVENTORY?
The inventory values that we ingest from Shopify and display in this dashboard are the end-of-day values for each SKU from the previous day. The combination of sales velocity and current inventory levels can help you predict when you might run out of inventory for a particular SKU, however that is a rough calculation that does not take into account many other inputs like open POs and planned sales increases. Daasity has a Predictive Inventory Feature that takes all inventory inputs into account and gives merchants an expected inventory level by day for every SKU in your assortment.
This feature is available for Pro merchants only.
For more information on how to add this feature please contact your TAM or email firstname.lastname@example.org.
The Inventory dashboard requires a Shopify integration as all inventory levels are ingested from Shopify.
You Have Too Many of These: Lower Prices, Cancel POs, or Promote on the Site
Not Enough Stock: Stock More, Raise Prices, or Remove From Promos
Top 10 Sales Velocity Decreases In The Last 7 Days
Top 10 Sales Velocity Increases In The Last 7 Days