Mango Report
Help Center
Search:
Contents
:
IndexBookmarkPrint

Home > PDF Reports > Charts > Executive Summary > Inventory

Inventory - Executive Summary

 

This section of the Executive Summary can help a store understand how its order points and resultant inventory level are achieving in-stock for your customers. 

Columns 1 through 4 are quantitative with 1 being above peer group average, 2 is average, 3 is below average and 4 indicates significantly below the peer average.  Colors are assigned qualitatively to indicate Green=Good, Black=Average or No Opinion, Yellow = Warning, Red = Extreme! 

OP greater than 1 - Order point greater than one percentage
This is a simple but informative metric showing the percentage of active Ace SKUs with order points greater than one as a percentage of all active (non-bulk) SKUs. If you want to see how your order point scheme compares to your peers then this is a great metric. Order point schemes with a high percentage of 1’s typically drive lower inventory levels and higher outs or are continuously overridden by staff during a manual ordering process.  

QOH greater than 1
This metric shows the percentage of active Ace SKUs in your store having a quantity on hand (QOH) greater than 1. This metric is highly correlated with your Productivity Level 1 - In Stock Opportunity and can be used to corroborate other metrics in two ways: 
  1. Compare/contrast with the OP greater than 1 metric above. large variances (20+ points) between QOH greater than 1 and OP greater than 1 can indicate a situation where order points in a store are not adequate and the staff is compensating by overriding the suggested order.

  2. Compare/contrast to your Productivity Level 1 - In Stock Opportunity metric. Stores with more In Stock Opportunity generally have QOH = 1 on a large breadth of inventory (including some good selling SKUs) and therefore are perpetually short on stock.
Obsolete
Shows the percentage of inventory value contained in inventory that has not sold in over two years. This metric is part of your Productivity Level 0 - Unproductive metric and can be reduced by employing Mango's Closeout Management system or COM.

Overstock
This metric shows the amount of inventory dollars (as a percentage of overall inventory) tied up in SKUs with over two years' supply on hand.  Store history combined with peer history is used to compute this metric and the SKU-level detail can be seen in your MEGA Report Overstock Tab. Overstock is part of your Productivity Level 0 - Unproductive metric.

COR Coverage
This metric shows the percentage of SKUs your store carries that are in Ace's Discovery COR assortment (fasteners excluded). It is a helpful metric to gauge how up to date your store's assortment is with Ace's category resets. Stores with lower percentages here have an opportunity to modernize their assortment which typically leads to better overall sales and margins.

GMROI TTM - Gross Margin Return on Inventory Investment, Trailing Twelve Months (TTM)
GMROI is a classic inventory productivity measure. It is calculated by dividing annual gross profit dollars by average annual inventory (Gross Profit dollars / Inventory Value). It is displayed as a decimal (instead of a percentage, as is typical with most other return on investment metrics). For example, if an item generates $30 in gross profit for the year and has an average inventory value of $10 then its GMROI would be ($30 / $10 = 3.00).  In the investment world, you would then multiply the 3.00 by 100 to get 300% return.

GMROI is a fantastic metric to use as a comparison between dissimilar classes of inventory. For example, liquid paint has a high inventory cost and low gross profit, whereas numbers, letters & signs may have much higher margin and lower inventory investment.  If we had $10,000 to invest in inventory GMROI would help us decide if liquid paint or numbers, letters & signs would be the better investment.

Relative Volume
This metric shows how busy your store is compared to the median (typical) store in your peer group. By comparing sales unit volume in the most commonly sold SKUs we can measure how much more or less of a typical SKU your store will sell compared to the median store (median store is 1.0).  For example, if your metric is 1.2 then your store sells 20% more units of commonly sold SKUs; if it shows 0.8 then your store sells 20% less. 

Relative Inventory
This metric shows how much more (or less) inventory value your store carries compared to peers.  For example, a store showing 1.2 carries 20% more inventory value than the typical store. 0.8 means 80% less than the typical peer store. This metric can be used in conjunction with other metrics (Productivity Level 1 - In Stock, QOH Greater than 1) to determine if your store is carrying enough of the right inventory.