The Velocity Report is useful when your inventory includes products you regularly replenish and avoiding stockouts or overstock is an important factor in maintaining the health of your business.
Assigning a Lead Time
Add replenishable MSKUs to the Velocity Report and begin tracking their Replenish By dates by assigning a lead time.
Your Lead Time is the number of days you’ll need to source and ship new quantities, while also allowing for transit time, and the time it takes for Amazon to process your inbound shipment.
To enter the Lead Time, go to your Inventory tab and select either FBA or Merchant fulfilled inventory from the menu.
You have the option to display your Inventory in either the Accounting view or Management view. To assign Lead Time days to an MSKU, select Management from the View menu.
Find the MSKU in your inventory. Under the Replenish Lead Time column select Do Not Track and enter the desired number of Lead Time days. Select Save.
While there currently is not an import method, you can bulk add items with the same lead time 50 at a time on the Inventory Management page. Click the checkbox next to each MSKU and choose Action on Selected > Edit at the top right. From there, input the lead time and click Save.
Viewing the Velocity Report
Select Velocity Report from the Reports tab menu.
Your Velocity Report syncs with Amazon once a day. MSKUs with newly assigned lead times or changes to lead times are added to the report the next time this occurs.
The following columns make up the report:
Inventory Item – This displays the item’s title and ASIN. Clicking on the ASIN will take you to that product’s detail page on Amazon.com.
MSKU – This displays the item’s MSKU. Clicking on the MSKU will take you to the item in the Inventory page Management view.
On Hand – This is the ‘On-Hand’ quantity of the item at time of last update.
Inbound – This is the Inbound quantity of the item at time of last update.
Supplier – This column will show up to 3 suppliers.
Average Daily Sales – This column displays the Average Daily Sales data for the last 30 days and the last 7 days, for each item that you are tracking.
Lead Time – This displays the lead time entered at time of last update.
Days Remaining w/ Safety Stock – This is how many days of safety stock are remaining before you need to replenish. The calculation for the days remaining is Days Until Reorder Date = (Current Inventory Qty – Reorder Point) / Avg Daily Sales
- Safety Stock – The safety net amount of stock in case you do start selling more than usual. The calculation for this is Safety Stock = (Max Daily Sales – Avg Daily Sales) x Lead Time
- Reorder Point (this is in-stock quantity, not a date) = Lead Time Usage (Avg. Daily Sales * Leadtime) + Safety Stock.
- Max Daily Sales – the maximum number of sales you’ve had in a day for an MSKU based on the past 30 days.
- Average Daily Sales – the average daily sales based on the past 30 days.
Replenish By – This is the date in which you need to order or source additional quantities to avoid a stock out. This calculation is Reorder Date = Current Date + Days until Reorder Date
For example, for an item you want to include safety stock with, say your avg. daily sales was 2, your max daily sale was 4, your lead time is 10, and you have 50 in stock.
Safety Stock = (4-2) * 10 = 20
Reorder Point = (2*10) + 20 = 40
Days Remaining With Safety Stock = (50 – 40) / 2 = 5
Reorder Date (with a date of 2/21/2018) = 2/21/2018 + 5 days = You need to start ordering more product on 2/26/2018.
View Days Remaining Without Safety Stock
There may be some items you have that are slower-moving, seasonal, or may have an occasional velocity spike that would overestimate your time to replenish. You have the option to switch the report to view Days Remaining W/o Safety Stock. This changes the Reorder Point calculation to Average Daily Sales * Leadtime.
To change the view, the selection box is in the upper right corner of your screen, to the left of the search field:
Click in the box and select either W/Safety Stock or W/O Safety Stock
Your last view chosen will be saved as the default for the next time you open the report. Exporting will export the columns you have in your current view.
Average Daily Sales Graph
If you click on any of the graph icons, an Average Daily Sales graph will appear at the bottom of the screen. The Last 30 Days graph will display each day for the past 30 days, and the Last 7 Days graph will display each day for the past 7 days.
You can move your cursor over each graph point to see the number of daily sales for the items you are tracking.
You can also view the information for every item you are tracking combined, or individually for each MSKU. To view by MSKU, click on the graph icon next to each MSKUs Average Daily Sales graph.
Note: You can filter the report using the search at the top. It will begin to filter with each keystroke. If the results of the are greater than 200, the Average Daily Sales graph will not display results. Refine your search criteria to narrow the results.
Check out our video on the Velocity Report below:
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