There are a lot of different ways that inventory control can be implemented. One of the most effective methods is online inventory management system based on sales analysis. A common way to determine the effectiveness of a company to turn its inventory into sales is the “Days Sales of Inventory (DSI)” calculation. The “DSI” calculation determines how many days the company keeps its inventory before selling it all.
The reason a company might want to hold on to this information is for potential investors. Potential investors would want to know this kind of information before investing in a company because this informs them whether or not the company is a good investment opportunity.
A company can analyze their sales in order to improve their “Days In Inventory” number. They can do this be seeing which products sell the fastest and which products take a long time to sell. They can then deem poor-selling products obsolete and abandon them from their inventory. This is inventory control based on sales analysis.
With a set of products that sell well and through eliminating the ineffective products from their inventory, owners are potentially increasing the value of the business. This is both in terms of potential profit from sales and the intrinsic value of the business. When the profitability increases, so does the intrinsic value.
All this is only possible through effective sales analysis. There are a number of inventory and sales analysis tools that can help. In order for companies to succeed and grow their business, online inventory management system based on sales analysis is a key factor. Without it, while they might still sell stock, they would be nowhere near as efficient.