eKourier July 2014

FEATURES

Big Data/Which Data?

Understanding Google Analytics for the KSS Team has been no different. There are insights and reports available to baffle even the most devoted “numbers man”. Too much data, too many reports often leaves us lost not understanding the insights, or worse, ending up with a “To Do” list so long you’ll never get it done. So which data tells us most about what is going on? In the case of Web it’s actually quite simple: • Higher rankings • More impressions (visible listings) • More clicks • More sales (Online Quotes and Reservations) Any improvements to the website or our marketing campaign are aimed at building these results. It’s these items we’ve been tracking and measuring and we now have a one page report that shows us exactly that. Darryl Hodgson NSW Operations Manager

vast amount of energy was invested in teaching students how to gather data and stay out of the dark. In less constructive work environ- ments those that had the data believed it gave them power. In those days there was no such thing as too much data and information overload was hard to come by. Thankfully those days are gone. A short time later the world changed and these days, in the information age we’re more

I n the previous edition the analogy between merchandise and cash and what this means to our business was briefly discussed, as was the distinction between Inventory Controls and Inventory Management. In this edition, the focus is on Inventory Controls. Inventory Control is managing the inventory that is already in our centre. This involves: • Knowing what products are “out there” and how much you have of each item. • Knowing exactly where each piece of each product is located in your centre. • Ensuring that all inventory remains in saleable or usable condition. • Storing products to minimise the cost of filling customer orders. Why is inventory control the starting point? A funny thing happened to me at the end of the 80’s and it wasn’t just the end of the mullet! Studying business at that time, the goal in decision making was always to gather information, the right information to be able to make an informed decision. A

often in an ocean of data! If we don’t have it at hand; some statistic or trend will only be a Google search away. More recently those in the industry have been talking about “Big Data” and the plethora of insights available for businesses like us.

No Margin For Error... (Part 2)

When we stock an item we are making a commitment—a commitment that the product will be available in reasonable quantities for immediate sale or delivery to customers. Unless we know exactly what inventory is in our centre and that it’s in usable condition, it is difficult to accurately determine when to reorder. Efficient stock control allows us to have the right amount of stock in the right place at the right time. It ensures that capital is not tied up unnecessarily and protects the business if problems arise with the supply chain. Some of the salient features of an effective inventory control system are: 1. Documentation and accounting controls relating to receipting (receiving) stock and pre and post sales activities. There are many administrative tasks associated with stock control. Typical paperwork to be processed includes Delivery Notes and Invoices for incoming goods, Purchase Orders, Receipts and Credit Notes, Merchandise Transfer Documentation and Sales Invoices.

In our business, the main sources of stock receipts are:

1. Amcor (based on orders placed)

2. From another centre as ‘Stock Transfers’ 3. Buy back and or returns from customers (Credit Note)

Goods receipt can be planned (1 & 2 above) or unplanned (3). Best Practice requires all of these to be treated alike. Compare the physical stock received to the quantity in the document (supplier Delivery Note or Stock Transfer Note) or raise a Credit Note for the quantity returned. This is the most critical step that determines the outcome of the inventory controls as a ‘whole’. The centre Team needs to ensure that there is no discrepancy, damaged goods etc. at each stage. It is also important to acknowledge receipt by signing the documents, highlighting variances (if any) and retaining a file copy. This document becomes the basis for accounting purposes.

Con’t page 11...

10

Kennards Kourier July 2014