Paralysis by Analysis

The information age continues to bombard us with data instantaneously. Some valuable (like this weekly message), some critical for rapid business decisions, and some just background noise.

How do we weed through the reports our c-stores are providing and not be paralyzed with indecision?

Keep it simple. First, print off an Inventory Analysis report by Category (or similar report if not a CMI client). This will give you the beginning inventory balance, purchases, sales, store use, shrink, spoilage, markdowns, transfers, and other adjustments that affect inventory. The report can be printed by day, week, or month. Additionally, you can view cost, retail, gross profit percentage, and inventory turnover information.

If your pricebook and scanning has been working as it should, this snapshot report will reveal if you are running on all cylinders or not.

If you see an anomaly at a category level, then you have other reports to drill down to the exact items by UPC that may be retailed at the incorrect selling price, where costs are inexact, or where inventory shrink or lack of movement is affecting the bottom line. Most software companies, like ours, offer dozens of reports and give you the ability to customize your own reports. Pick the ones that best meet your objectives.

Remember: To manage effectively, and avoid paralysis by analysis, check the exception reports and save a tree.