How to Maintain an Accurate Available to Sell Inventory for Your Sales Team
As a wholesaler of consumer products, you know how important it is to have enough inventory on hand to meet the demand of your retail customers. But you also don’t want to overstock your warehouse with products that are not selling or are outdated. That’s why you need to maintain an accurate available to sell (ATS) inventory for your sales team.
What is ATS inventory?
ATS inventory refers to the number of units of a product that are currently for sale. It includes the amount of inventory you have available to sell, plus any open purchase orders that haven’t been shipped yet1. Any units that are pending shipment, set aside for existing orders, or marked for backorders are not counted as ATS inventory. They are not available to sell because they have already been sold.
Why is ATS inventory important?
Maintaining an accurate ATS inventory is crucial for several reasons:
It helps you avoid stockouts and backorders, which can damage your reputation and customer satisfaction2.
It helps you optimize your inventory turnover and cash flow, by avoiding overstocking or understocking your products2.
It helps you plan your purchasing and production activities, by forecasting your future demand and supply2.
How to calculate ATS inventory:
To calculate your ATS inventory, you need to track the following data:
Your current inventory level: This is the number of units of a product that you have in stock in your warehouse.
Your open purchase orders: This is the number of units of a product that you have ordered from your suppliers but haven’t received yet.
Your pending shipments: This is the number of units of a product that you have sold but haven’t shipped yet.
Your existing orders: This is the number of units of a product that you have sold and shipped but haven’t invoiced yet.
Your backorders: This is the number of units of a product that you have sold but don’t have in stock.
The formula for calculating your ATS inventory is:
ATS inventory = Current inventory level + Open purchase orders - Pending shipments - Existing orders - Backorders
For example, let’s say you have 100 units of a product in stock, 50 units on order from your supplier, 20 units sold but not shipped, 10 units sold and shipped but not invoiced, and 5 units sold but out of stock. Your ATS inventory would be:
ATS inventory = 100 + 50 - 20 - 10 - 5 ATS inventory = 115
This means you have 115 units of the product available to sell.
Tips for improving ATS inventory
Here are some tips to help you improve your ATS inventory management:
Use an inventory management software or system that can automatically track and update your ATS inventory based on your sales and purchasing data.
Sync your inventory data across all your sales channels, such as online stores, marketplaces, or physical stores.
Conduct regular physical inventory counts or cycle counts to verify your actual inventory level against your recorded inventory level.
Design accurate easy-to-read inventory real-time reports for your sales team.
Outsource your back office with a reliable service provider.
Conclusion
Maintaining an accurate ATS inventory is essential for wholesalers of consumer products who want to increase their sales efficiency and customer satisfaction. By following the tips above, you can improve your ATS inventory management and grow your wholesale business.