Monitor product sales velocity and automate inventory allocation using Skupreme's predictive forecasting tools.
Sales velocity monitoring is crucial for maintaining optimal inventory levels and preventing stockouts. Skupreme's sales velocity feature provides predictive analytics to help you make informed decisions about inventory allocation and shipment planning.
Accessing Sales Velocity Data
To access sales velocity information for any product:
- Navigate to Catalog in the main menu
- Select the specific Item Detail Page for the product you want to analyze
- Click on the Sales Velocity subtab
Understanding the Sales Velocity Interface
The Sales Velocity subtab contains three main sections at the bottom of the interface:
1. Inventory Flow
Shows the movement of inventory over time, displaying how products flow through your supply chain.
2. Sales Forecast
Provides predictive analytics showing expected sales patterns and trends based on historical data and current velocity metrics.
3. View Formula
Reveals the calculation methodology used to determine sales velocity and inventory suggestions.
Key Metrics and Data Points
Sales Velocity Overview
The main dashboard displays critical velocity metrics including:
- Current Sales Rate: Shows units sold per day (e.g., 35 units/day for 7-day average)
- Velocity Trends: Compare 7-day, 14-day, 30-day, 60-day, and 90-day averages
- Stock Status: Current inventory levels (Present, Reserved, Expected units)
Calculation Variables
The system uses four key calculation parameters to determine optimal inventory levels:
- Transit Time: Time required for shipments to reach destination (default: 32 days)
- Shipping Buffer: Additional time buffer for shipping delays (default: 7 days)
- Minimum Desired Stock: Safety stock level to maintain (default: 30 days)
- MOQ(Minimum Order Quantity): The smallest number of units a supplier is willing to sell in a single order
- Shipment Threshold: Trigger point for creating new shipments (default: 0 days)
Minimum Desired Stock Explained
The Minimum Desired Stock is a dynamic metric based on your region's primary warehouse where purchase orders are inbound. This safety stock level ensures you maintain adequate inventory to meet demand while accounting for lead times and potential delays.
Key aspects of Minimum Desired Stock:
- Calculated based on regional warehouse requirements
- Considers inbound purchase order timing
- Adjusts dynamically based on sales velocity changes
- Helps prevent stockouts during replenishment cycles
Sales Velocity Formula
The system calculates suggested shipment quantities using the formula:
Suggested Value = ((Minimum Desired Stock + Lead Time - Existing Inventory and Shipments) × Sales Velocity)
For example, with the data shown:
- 964.95 Units = ((30 Days + 40 Days - 52.03 Days) × 35 Units/Day)
- Final Suggested Value: 972 Units (rounded from 964.95 Units)
Predictive Forecasting
The sales forecast chart provides visual insights into:
- Historical Performance: Past sales data and trends
- Predicted Sales: Future sales projections based on velocity algorithms
- Regional Comparisons: Performance across different markets (US, CA)
- Seasonal Patterns: Identification of peak and low-demand periods
Automated Inventory Allocation
Skupreme's system automatically:
- Predicts optimal inventory levels based on sales velocity
- Suggests inbound shipment quantities
- Creates shipment recommendations for different channels (e.g., Walmart B2B)
- Adjusts forecasts based on real-time sales data
Best Practices for Sales Velocity Monitoring
- Regular Review: Check velocity metrics weekly to identify trends early
- Adjust Parameters: Modify calculation variables based on supplier lead times and business needs
- Monitor Seasonal Changes: Be aware of seasonal fluctuations in demand
- Use Predictive Data: Leverage forecasting to plan inventory 4-8 weeks in advance
- Track Multiple Timeframes: Compare short-term (7-day) with long-term (90-day) trends
Integration with Shipment Planning
The sales velocity data directly integrates with Skupreme's B2B shipment functionality, automatically generating inbound shipment suggestions to retailers like Walmart based on your velocity predictions and inventory thresholds.
This automated approach helps maintain optimal inventory levels while minimizing carrying costs and preventing stockouts across your distribution network.