The return our customer’s business makes on it’s assets is a function of how fast it sells it’s inventory at a profit. Because such a high proportion of our customer’s cash is the cost of sales, anything that we can do to help our customer be more efficient helps his bottom line.
Stock can be considered the single biggest focus area for our customer, since it represents such a substantial part of our customer’s business’s assets.
Stock management is crucial to a Customers Answerprofitabilityspace management
because it ties up our customer’s cash – and it is therefore important to understand the cost of money
For our customer stock is “interchangeable” with money – it impacts directly on our customer’s Answercash flowdeliveries
Money invested by our customer in non-performing stock could be invested somewhere else – yielding a higher Answerrate of returnrate of OOS’s
This means our customer has a lost Answeropportunitymonth
to make money from investing in more profitable stock.
Stock also represents a major Answeroperatingfixed
expense for our customer because the higher the interest he has to pay on the money he borrows to fund his stock purchases, the higher the carrying costs his business has.
How stock is presented and managed substantially affects our customer’s overall company Answerimageplans
We has a great opportunity to help our customer be more profitable with proposals that Answerimprove efficiencyimprove communication
for both ourselves and our customers.