How inventory flows thru our business is one of the least understood issues in our industry. It is easy to look around the warehouse and out back where the vehilces are and think we have plenty of inventory. Most of the time. it's simply not true,
The amount of saleable inventory is one of the most important and misunderstood issues in our industry. As a result we often believe we have lots of inventory to sell, when in reality sales may be down because we are starving for saleable parts. I agree that we have a lot of parts, but that is different from the SALEABLE parts. Saleable parts meet the demand of the customer who is calling TODAY.
This video explains in simple terms how inventory flows like water thru out business. Once we can visualize the concept presented it will be easy to understand if you are buying enough to support current demand and sales goals.
Click on the title and then the "here" in the red box which will appear to view this video by Jim Counts.