Tuesday, March 4, 2014

Inventory Makeup (Tradecraft)

Building on the last post, the question is how much of your inventory is of each type? Primarily, how much is your current demand inventory versus your safety inventory? My impression from talking to other retailers is they perceived their safety inventory to be a small percentage of their overall inventory. What I found is quite different.

  • My current inventory contains 14,391 items. There's currently a purchasing budget surplus, so normally I have more.
  • As an aside, over 10 years, I've dropped nearly 25,000 items (items with a zero quantity). They hang out in my database and slow things down and have dug in, making them difficult to delete.
  • The total SKUs, number of unique items, is 4,761.
  • The average number of items per SKU is 3.0.
  • Inventory with just one item in stock, my current demand inventory is 3,324 or 23% of my inventory. You might argue that one of each of every item over that one item should be included in this number.
  • Rather than safety inventory comprising a small percentage of my stock, 77% of my inventory has some safety built in.
  • Coming up with hedge inventory is a bit tougher, but I'm guessing it's perhaps 10% of the safety inventory, with almost all of it being collectible card games.

Items Qty
1 Item 3324
2 items 691
3 items 235
4 items 132
5 items 79
6 items 72
7 items 42
8 items 34
9 items 6
10 items 20
11-15 items 56
16-30 items 54
31-50 items 37
51+ Items 27