When looking at inventory management and attempting to minimize expenditures while maximizing profits, distributors are faced with a challenging balancing act. Not all items are of equal importance to customers or to distributors, but how do you rank these items to discover which ones are the most valuable?
Following insights based on Pareto's Law, Jon Schreibfeder walks us through the tenets that dictate that only 10-13% of stocked inventory items are responsible for 80% of sales. Learn how to rank products based on:
- Cost of Goods Sold
The key to greater growth is in knowing how all contributing factors affect your inventory items, and how to use this information to optimize inventory counts. Boost your bottom line by calculating the true value of your inventory items.