COR-DistributionandWarehouseReport - Distribution and...

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Distribution and Warehouse Report Explanations of Numbers — Suggestions and Tips for Using the Report This report provides a thorough rundown of all aspects of operations at your company's four distribution center during the report year. There are statistics on the numbers of branded pairs that came in from plants, pairs sold, inventories, the S/Q ratings and models available in each warehouse, the costs of branded pairs sold, the costs of warehouse operations, and the results of any inventory clearance sales. All of these merit management's attention each year, since crafting a cost-efficient distribution and warehouse strategy for your company requires having a grip on the numbers reported here. This Help page consists of three sections. The first deals with understanding the ins and outs of all the numbers being reported. The second deals with suggestions and tips for using the information in making decisions on how to run this part of the company's business. The third entails a full explanation of what underlies the exchange rate cost adjustment shown in the section on "Cost of Branded Pairs Sold" and why exchange rate shifts affect branded footwear costs. Understanding the Numbers on the Distribution and Warehouse Report Most all of the numbers in this report are straightforward and easy to grasp, but the cost calculations often merit discussion and comment so that you can understand exactly where the numbers are coming from and how to interpret them. Otherwise, it is hard for you to know what actions to take to control costs and to operate your distribution centers to maximum effectiveness. Warehouse Operations Information. This bank of data reports the status of branded pair inventories as of the end of the pair year, indicates how many pairs were cleared out at the start of the year via clearance sales, shows how many newly-produced pairs came into each warehouse from each of the company's plants, how many pairs were available for sale, how many branded pairs were sold online and how many were shipped to area retailers, the inventory requirement to meet scheduled delivery times to retailers, any inventory surplus/shortage, and the year-ending inventory. There's nothing mysterious here about any of these numbers. But a couple of comments are in order to just elaborate on how things work at your company: The size of the inventory requirement at each distribution center is a function of delivery times, annual sales volume in the region, and the number of models available for sale in the region. The number of pairs required to be in inventory at all times ranges from as low as 1% of annual sales (with 4-week delivery and model availability of 50) to as high as 15% of sales (with 1-week delivery and model availability of 500). The inventory requirement number is an absolute minimum. In no instances can the company even temporarily use
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COR-DistributionandWarehouseReport - Distribution and...

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