Jun 2006 Newsletter

Important Update - Canadian Customers

On July 1, 2006 the Canadian GST will be changing from 7% to 6%. This means that POSability will need to be updated to reflect the new rate. Please ensure that all your stores have received and understand the steps well in advance. Click here to download the instructions to update the GST.

Inventory Analysis Graphs:

A new feature has been added to ReACT EKG ("Enterprise Knowledge Grid") - Inventory Analysis Graphs. This new feature graphically identifies weekly activity for sales, markdowns, costs, margins and inventory. It is designed to help you identify trends, GMROI, turns and stock-to-sales.

Some of the Benefits

Improve the timing of your inventory purchases
Identify inventory that is over or under stocked

The first Inventory Analysis Graph shows the dollars for Sales, Markdowns, Cost, Margin and Inventory.

Click on the Margin tab to see Margin percent and GMROI percent compared to an annual average. Gross Margin Return on Investment (GMROI) is the ratio of gross margin to inventory investment at cost, and helps you identify the most profitable investments in inventory.

This graph shows weekly inventory turnover. Turnover is the rate at which inventory is being sold. It is calculated by dividing inventory sold by the average inventory.

A final graph shows Stock-to-Sales by week and compares them to the annual average. Stock-to-Sales is the beginning inventory divided by sales for the week.