Role: Inventory manager
Job: Negotiating purchases
Recommended Frequency: Before any order.
The Order Sell Through report allows you to see the percentage of items received on a purchase order that actually sold. As a results, you can gauge which suppliers are more profitable in your store than others.
- Guide your purchasing with quantifiable success rates to avoid over or under-ordering products.
- If a vendor has a 50% sell-through, that means that half of what you have ordered from the vendor is still held in stock. By seeing this information clearly, you can see whether this sell-through rate fits your retail strategy or adjust your ordering plan if necessary.
- Depending if your sell-through is under or over your target for the current point in your season or model year, put your items on clearance or re-order additional stock.
More informed relations with suppliers:
- The sell-through rate is a concrete metric for negotiating prices or order quantities with your suppliers. By knowing exactly how much of your vendor's products sells in your store, you can potentially argue for different purchasing agreements. This way, you can offer more competitive pricing and in turn, increase your sell-through rate.
Unit Sell Through:
- The percent of your received orders in a time period that has sold as of now. Calculated by using the current quantity on hand vs the units received during the time period.
- Sell-through % = 1 - (Quantity On Hand / Quantity Received In Time Period)
Turbocharge your report
Narrow to a single vendor:
- Filter by Default Vendor to see the sell-through of your orders with a particular vendor.
Know what to order and from whom:
- Filter the report by Department or Category to see which of your vendors has the best sell-through for that segment of your inventory.
Track your sell-through progress for seasonal or model year inventory:
- If your items have season information in their description, sku, or category, filter with contains and enter the season in the search.
Reduce your costs:
- Add Total Cost as a measure to see which vendors you are spending the most with and whether their sell-through rate justifies the cost.
- Revise your open purchase orders.
- Bookmark or export reports as a negotiation tool with your sales representatives.