This dashboard is your go-to, one-stop shop analysis for inventory on hand, helping you to distill your inventory landscape in a single, easy to understand report – with these tools, you will be able to pinpoint the products that are overstocked, understocked, & properly stocked given your current supply on hand.
When determining your coverage level (i.e., overstocked, understocked, properly stocked), Headset looks at three metrics: Units on Hand, In-stock Daily Sales, & Days of Supply Target
Let us look at this in action:
Pretend we are analyzing “Product A” – given our current quantity on hand, we want to know if we can meet consumer demand for the next 14 days? 14 days in this example is our Days of Supply Target (i.e., how many days we want Product A to be on the shelves).
Let us assume I have 28 Units on Hand of “Product A.” The question remains, is that enough to cover demand for 14 days?
Headset answers this question by creating a forecast (our way of predicting the future). Our forecasts are informed by historical sales – so we need to look at how “Product A” sold historically to get an idea of how it will sell in the future. Over the last 60 days, we sold 120 units of “Product A.” Thus, on average, we are selling 2 units per day (120 units sold/ 60 days).
BUT WAIT. HOLD UP. STOP. That is assuming that “Product A” was in-stock every day over the last 60 days. In reality, “Product A” was in-stock only 30 of the last 60 days, which means that my daily sales are actually 4 units per day (120 units sold/ 30 days). This is what we call your In-stock Daily Sales.
Alright, let us now pull everything together. I have 28 units on hand. I am selling 4 units per day when “Product A” is in-stock. That means I only have enough product to cover 7 days if I continue selling 4 units per day (28 units/4 units per day), so to answer my first question, NO, I DO NOT have enough product on hand to meet the next 14 days. In this example, my “Coverage Ratio” would be 0.5 or ½ (I could only cover half of my desired time frame of 14 days). ***If we did not use in-stock sales to inform our forecasts, we would have incorrectly assumed that we have enough product on hand to cover the next 14 days.
How it works?
Filters, filters, filters.
- Select your desired store(s)
- Curious how forecasts work across multiple stores? Click here.
- Select the number of historical days you want to use to inform your forecast, 28 or 60 days.
- What is a forecast? Read above.
- Select the number of days you want the inventory to cover (i.e., Days of Supply Target).
- Group your products by Category, Brand etc.
- Use any additional filters to focus on specific products.
Note that you can drill into the dashboard’s inventory coverage ratios to access the underlying product information (You can also scroll to the bottom of the dashboard to access the full product list that you have filtered to).