Inventory Analysis

Operation Objective

Through two core indicators - inventory turnover rate and sell-through rate - determine whether inventory is healthy and whether products are selling well, thereby deciding on replenishment, clearance, or adjusting stocking strategies.

Entry: Left Navigation → Statistical Analysis → Inventory Analysis

Core Metrics Overview

Inventory analysis revolves around two indicators. Understanding them is the foundation for making decisions:

Metric	Calculation Method	Meaning	High Value Indicates	Low Value Indicates
Inventory Turnover Rate	Outbound quantity during period ÷ Average inventory quantity during period	Inventory flow efficiency	Selling fast, inventory light	Goods stuck in warehouse, slow flow
Sell-through Rate	Number of SKUs with outbound records during period ÷ Total number of SKUs during period	SKU sales activity	Most SKUs are selling	Many SKUs have no sales

Tip:

• Turnover rate reflects "how fast it sells", sell-through rate reflects "how wide it sells". Both indicators should be viewed together.
• High turnover rate + High sell-through rate = Healthy inventory structure.
• Low turnover rate + Low sell-through rate = Severe inventory backlog, requires clearance adjustment.

Common Business Scenarios

Scenario 1: Evaluate Overall Inventory Health

1. Open inventory analysis, which defaults to "Dashboard Mode".
2. View the "Inventory Turnover Rate & Sell-through Rate Trend Chart" and observe the overall trend:
   • Both lines steadily rising: Inventory structure is optimizing, stocking strategy is reasonable.
   • Both lines declining: Inventory backlog is intensifying, need to investigate specific causes.
   • Turnover rate rising but sell-through rate declining: May be that a few hot items are selling, but most SKUs are slow-moving.
3. Switch time granularity through the upper right corner of the chart:
   • Day: View short-term fluctuations, suitable for investigating anomalies.
   • Week: View medium-term trends, suitable for monthly reviews.
   • Month: View long-term trends, suitable for annual planning.

Note:

• Average Inventory: Average inventory quantity during the period, reflecting inventory scale.
• Outbound Quantity: Cumulative outbound quantity during the period, reflecting sales scale.

Scenario 2: Find SKUs with Slow Turnover

1. Switch to "Detail Mode".
2. Click the "Turnover Rate" column header to sort in descending order, with the lowest turnover rate SKUs at the top.
3. Focus on SKUs with turnover rate < 0.1 (i.e., outbound quantity is less than 10% of inventory).
4. Further judge each low-turnover SKU:
   • Is it a newly inbound product, just listed and not yet sold? Can continue to observe.
   • Is it a seasonal product, currently in off-season? Can wait for peak season.
   • Neither new nor seasonal, and long-term low turnover? Need to consider clearance.

Scenario 3: Find Completely Unsold Slow-Moving SKUs

1. Switch to "Detail Mode".
2. In filter conditions, filter "Sell-through Rate" to 0%, or directly sort by sell-through rate in ascending order.
3. The list will display SKUs with no outbound records during the period.
4. Combine "Current Inventory" and "Average Inventory" to judge the backlog scale.
5. Handling suggestions:
   • High inventory and long storage age: Initiate Scrap Request for disposal.
   • Low inventory but long-term no movement: Consider Transfer Request to warehouses with better sales.
   • Can still sell but needs promotion: Contact platform operations for promotional clearance.

Scenario 4: Compare Inventory Performance Across Different Warehouses

1. In filter conditions, select target warehouse A, record its average turnover rate and sell-through rate.
2. Switch filter conditions to warehouse B, compare the same indicators.
3. If a warehouse's turnover rate is significantly low:
   • May be overstocking, need to reduce replenishment to that warehouse.
   • May be uneven sales distribution, need to consider Transfer Request to transfer to high-sales warehouses.
   • May be products not suitable for local market, need to adjust product selection strategy.

Scenario 5: Export Details for Quarterly Review

1. Set time range in filter conditions to this quarter (e.g., April 1 - June 30).
2. Switch to "Detail Mode".
3. Click the "Export" button:
   • Export All: Export turnover data for all SKUs in this quarter
   • Export Selected: Only export checked key SKUs
4. The exported Excel contains fields such as SKU, product name, warehouse, average inventory, outbound quantity, turnover rate, sell-through rate, etc., which can be directly used for review reports.

Note:

• Current Inventory: Available inventory as of the query date, can be compared with turnover rate to judge subsequent replenishment needs.
• Product Image: The list displays product thumbnails for easy product identification.

Scenario 6: Determine Whether Replenishment Is Needed

1. Search for target products by SKU in "Detail Mode".
2. View the following for that SKU:
   • Turnover Rate: Judge how fast the product sells.
   • Outbound Quantity: Judge sales scale during the period.
   • Current Inventory: Judge how long current inventory can last.
3. Calculate inventory sellable period: Current inventory ÷ (Outbound quantity ÷ Number of days in period).
   • If sellable period < 14 days, recommend immediate replenishment.
   • If sellable period is 14-30 days, can arrange replenishment plan.
   • If sellable period > 60 days, no need for replenishment for now.

Common Questions

Why Is Turnover Rate 0?

• No outbound records during the period, resulting in outbound quantity being 0, turnover rate = 0 ÷ Average inventory = 0.
• Please confirm whether the SKU had outbound during the period: You can search by SKU in Outbound Overview.
• If there was outbound but turnover rate is 0, it may be that the filtered time range or warehouse is incorrect.

Why Is Sell-through Rate Only 0% or 100%?

• A single SKU's sell-through rate only has two states: with outbound (100%) or without outbound (0%).
• Overall sell-through rate is a percentage (e.g., SKUs with outbound account for 30% of total SKUs).
• The sell-through rate in dashboard mode is the overall sell-through rate, while in detail mode it is the single SKU sell-through rate.

How Often Is Data Updated?

• The page top displays "Data Update Date", generally updated at Japan time 00:00:59(UTC+9:00).
• If you need to view the latest data, you can click the "Refresh" button in the upper right corner to manually obtain it.

Why Is Exported Data Inconsistent with the Page?

• Please confirm that filter conditions (warehouse, time range) are consistent with the page.
• Exported data is a snapshot, refreshing the page may show different data.
• If there are still discrepancies, please contact the business manager for technical support.