Documentation

Sell-through

This report lets you gauge which suppliers are more profitable in your store than others. See the percentage of items received on a purchase order that actually sold.

  • Role

    Inventory Manager

  • Job

    Negotiating Purchases

  • Recommended Use

    Before any Order

Benefits to You:

Smarter Purchasing
  • Guide your purchasing with quantifiable success rates, so you are not over or under-ordering products.
Saved Money
  • If a Vendor has a 50% sell through that means that half what you have ordered from the vendor is still held in stock. By seeing this information clearly, you can see whether this sell through rate fits your retail strategy, or adjust your ordering plan if necessary.
  • Put items on clearance or re-order additional stock if your sell through is under or over your target for the current point in your season or model year.
More informed relations with suppliers.
  • The sell-through rate is a concrete metric for negotiating prices or order quantities with your suppliers. By knowing exactly how much of their product sells in your store, you can potentially argue for different purchasing agreements so you can offer more competitive pricing and bring the sell-through rate up.

How it's calculated:

  • Sell Through - The percent of your received orders in a time period that has sold as of now.
    • Sell Through % = Quantity Sold / (Quantity PO received + Transfers In - Transfers Out + Adjustments)
    • Adjustments = Any quantity manually adjusted or added through a refund
    • Transfer Balance = Quantity transferred in - quantity transferred out
    • Total Received Quantity = Quantity receieved through a purchase order + quantity transferred in - quantity transferred out
    • Days to Sell Out = Number of days that had sales in this date range * (QOH / Units Sold in this date range)

Available Variations:

With Category Filter
  • Default report with added filter "Line Item Category", so you can focus the report to products from particular categories.
With Cost
  • Default report with the additional column "Line Item: Cost of Received", so you can compare the cost spent on products versus how much actually sold.
Purchase Order Sell Through
  • In this report, you can compare the qunatity received on individual purchase orders versus how much actually sold.

Next Steps:

  • Revise your open Purchase Orders.
  • Bookmark or export reports as a negotiation tool with your sales reps.