James Shores tries to bore you to death with reports, road analogies, and forgotten beverage ad campaigns.
Hi, I’m James, welcome to Whiteboard Wednesday. Today we’re going to talk about something so boring: reports. I.Y.D.K.Y.D.G… I know, I’m losing my mind, making crap up, we’ll see.
So, with reports, it’s kind of like traveling across town to try to find the most basic information. You’re just going to waster a lot of mileage. Trying to look at your item counts, figure out if those are correct, maybe swing by the vendors, see if everything is okay there, if you’re getting the best prices. Come back over here to look at your item turnover, see if that’s jiving right, and you’re looking at your expenses, are they all in line, you’re not quite sure cause it’s not the best way to look at it from this side of the road. You try to pass by your revenue… You get the point. Good Luck.
If you don’t know what you’re looking for, or how to use your information, you’re just going to end up kind of wandering, getting lost, and there goes the afternoon, and you probably got mugged because this is a bad part of town.
But IF we can make use of the super highway, which is also known as an automated software solution, reporting becomes valuable to us. It’s not just information, it is information that we are putting to work on behalf of our own company.
So: I.Y.D.K.Y.D.G - If you don’t know, you don’t go. So let’s KNOW some things.
With reporting we should be able to look at our inventory and its turnover. How long is an item sitting there, how fast does it go out, do we have problems with stock-outs? All things that, again, can be addressed as soon as we look at our reports and see what the issues are.
Demand. What’s being purchased, what’s not. Is there some seasonality to these changes that we can then adapt to, so that we’re not holding items for too long and just leaving cash on the table.
Vendors. We can see are we getting the best price breaks? How long has our purchase history been with them? Are we getting the turnaround on what they’ve promised us?
Customers. We can see their entire history, whether we’re talking about one customer or a whole bulk of customers, again, there’s a correlation here, so we can see what’s being purchased, what’s popular, what’s not, maybe some changes that we need to make according to the items that we produce or sell or both.
But also loyalty. Those customers that are purchasing often and in large amounts, ought to be supplied with our best possible service, we should be doing that for everyone, but we really need to take care of those that are taking care of us.
And finally revenue. I mean, this is something that affects all these things and plays into this, but can we look at our gross sales? per quarter? per year? For the past three years? All of these things should be able to give us information that should affect then our upcoming proforma as a company as a whole; the changes that maybe we need to make, we could look at even things like labor, how much time are we spending producing a part? Shipping out an item? Is that the right amount of time? Are we wasting time and labor? Our we wasting time—expenses—in other places?
This is the whole point of reporting, is to take all this information and to put it to use. To make it make sense. We’re taking that fast lane, so that just like driving a car, we can steer it in the right direction, and just go.
Because, otherwise we’re driving around town, we’re getting lost, and getting mugged—cuz, it’s right under the freeway, it’s—I digress.
So, remember, reports may be boring, but If You Don’t Know, You Don’t Go.
I.Y.D.K.Y.D.G. (I stole that from Coke)
Thanks! Whiteboard Wednesday, I’m James.