The Customer Satisfaction Analysis

In previous newsletter articles we have discussed the customer service level.  This is a measurement of the number of line items on sales orders shipped complete in one shipment on or before the date the material was promised to the customer.  The customer service...

Core Versus Speculative Inventory

The phenomenon of  “inventory creep”:  a constant increase in inventory without a corresponding increase in sales.  Management is often puzzled when this occurs, despite having implemented an expensive, state of the art inventory management system. The most common...

Scrutinze Anticipated Profitability

I received an email from a customer this week asking how to handle a salesperson’s request to stock a product.  This would be the only product this new customer would buy: Anticipated Annual Sales              $1,888 Annual Cost of Goods Sold           $1,411...

Analyze Your Customer Service… Hit or Miss?

Competition is greater today than ever before. It is critical that every business knows how well it is meeting its customers’ needs, identifying deficiencies, and putting into place improved practices and procedures. In previous newsletters we have discussed the...

Inventory Profitability Measurements

Last month we looked at how to calculate inventory turnover. Many companies view inventory turnover as their primary measurement of inventory performance. But should turnover be the only inventory metric analyzed on a regular basis? If a company enjoys high gross...