Inventory Velocity Report
The Inventory Velocity Report shows information about each SKU, including its sales velocity, the number of available items in stock, the forecast sale period for each item, and an option if the item needs to be reordered once again. Please see Generate reorder suggestions for detailed instructions for using this report for reordering and replenishment.
This report can be scheduled to run automatically in the Report Scheduling module and delivered to your inbox.
Note: The Inventory Velocity Report is not available for Cin7 Core business accounts that have been canceled or are in arrears. In these cases, the Inventory Velocity Report page will show the last generated report, if any.
Prerequisites
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Set reorder parameters for products
Set up Locations and ensure Allow reorder stock level is checked
Users will need the Sales reporting permission to access to this report.
Data from this report can be exported in Excel, PDF or RTF format.
Report input and output
Input:
Reporting period |
Allows the user to select the time period from a list of options. |
Calculate reorder quantity using safety stock |
There are two options for calculating the reorder quantity, which are controlled by this setting. Enabled:Reorder quantity = Sales velocity x (Safety + lead time) - available - on order |
Recommended action |
Filters report results by recommended action (Specify reorder quantity, Reorder product, Inventory product is OK, All). See Important information for calculations. |
Layout |
Set to the Default layout. Allows selection of saved layouts, if any. |
Save layout as |
Allows saving a layout for potential future use. |
Reset layout |
Resets the layout to the default layout or selected saved layout. |
Output:
Fields | |
Location |
Name of the location |
Supplier |
Name of the supplier |
Product Name |
Name of the product |
Product SKU |
SKU number of the product |
Active |
Indicates if the product is active |
On B2B portal |
If the product is listed in the B2B portal = True. |
On sales channels |
If the product is listed in Sales Channels = True. |
Component |
If the item is a component in the BOM = True. |
Finished good |
If there is a BOM for the product = True. |
Last sale |
Date of last sale |
Date added |
Date of 1st movement in Cin7 Core |
Days since added |
Number of days since the product was added to Cin7 Core |
Data headers | |
Available |
The number of available units. |
On hand |
Quantity of units on hand |
Units sold |
The number of products sold in the last 7/14/30/60/90 days |
Shipped per day |
Products shipped per day |
Velocity |
Units sold per day based on movement from the last 7/14/30/60/90 days. NOTE: Items that have been first added to inventory part way through the recording period have a different logic. Velocity value is instead calculated as {Units Sold}/{number of days since product was first added to stock or first stock movement}. See Important Information. |
Days to zero |
Expected number of days until the inventory of the product becomes zero. Computed as {available units / {inventory velocity}. |
Days to zero (inc. on order). |
Expected number of days until the inventory of the product becomes zero, including stock on order. Computed as {available units + on order} / {inventory velocity}. |
On order |
Quantity of items not yet received from all authorized POs. |
Lead stock |
Expected number of days between opening and submitting the PO to the supplier and receiving the stock. |
Safety defined |
Preferred minimum number of days of inventory (safety stock). |
| Reorder amount | The recommended number of products to reorder. |
Refresh the report
After generating the Inventory Velocity Report, you can rerun the report and update the data within from the Inventory Velocity Report page at any time by clicking the Generate report button.
Export the report to another format
Just like any other Cin7 Core report, the Inventory Velocity Report can be exported as a Microsoft Excel file with or without totals, as a PDF file, or a Rich Text Format file.
To export the report, click the Export button, then select the appropriate format from the list. The filtered view will be exported, for example, the report when filtered by recommended action: reorder product.
Important information
Every time the report is generated, the data for the previously generated one is written over. Only users with active sales reporting permissions can generate the report. See User permissions explained and Introduction to users and Manage roles for more information about permissions.
If you have an active Report Scheduling module, the Inventory Velocity Report can be scheduled to run using the module.
The Inventory Velocity Report shows information about each SKU, including its sales velocity, the number of available items in stock, the forecast sale period for each item, and an option if the item needs to be reordered once again.
If Calculate reorder quantity using safety stock is disabled,
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When computing for the product reorder quantity, Cin7 Core considers the following:
The reorder quantity value under the Suppliers tab on a product's details page.
If the reorder quantity is not specified for the supplier + location combination under the Suppliers tab, the system gets the reorder quantity for a specified location from the Reorder levels tab instead.
If the reorder quantity is not specified for the location under the Reorder levels tab, the system gets the reorder quantity from the product's details page.
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When computing for the minimum before reorder quantity, Cin7 Core considers the following:
The minimum before reorder quantity under the Reorder levels tab on a product's details page.
If the minimum before reorder quantity is not specified for the product, the system gets the minimum before reorder quantity from the product's details page.
The minimum before reorder quantity that is set up under General Settings → Purchase process customization is not considered in the computation.
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The minimum before reorder quantity on a product's details page and the minimum to order quantity under the Suppliers tab are different from each other.
Minimum before reorder is part of the final reorder quantity formula, i.e. Reorder quantity = Product reorder quantity + Minimum before reorder - available - on order.
Minimum to order prevents you from ordering anything less than the stated quantity from a particular supplier.
If Calculate reorder quantity using safety stock is enabled,
Reorder quantity = Sales velocity x (safety + lead time) - available - on order
The Safety and Lead time is specified under the Suppliers tab on a product's details page.
Safety and lead time must be set at least for the supplier as a whole. If safety and lead time is specified for a supplier + location combination, that value will take priority.
In all cases:
If velocity is not 0, reorder date = today + (days to zero + on order/velocity - lead stock - safety defined) days
If velocity is 0 and number of available units + awaiting units < 0, reorder date = today
Inventory velocity calculation:
Velocity is calculated as units sold per day based on movement from the last reporting interval (7/14/30/60/90 days).
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Computed as {Quantity of items sold for the reporting time} / {reporting time}.
Quantity of items sold for the reporting time is the sum of sold items in sale, assembly, disassembly, and write-off tasks.
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Items that have been first added to inventory part way through the recording period have a different logic. Velocity value is instead calculated as {Units Sold}/{number of days since product was first added to stock and also number of days since the FIRST product movement}
Go to Inventory → Products → [select product] and the Movements tab to examine a product's movements.
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Example:
A user runs the Inventory Velocity Report on the 08/10/20. Product A has 64 items sold, and the report is set for 30 days, so the user expects to see a velocity of 2.13. (64/30).
However, the first product movement was on the 28/09/20. The product has 10 days since the first movement. In this case, Cin7 Core will take 64 items, and divide by 10 days to get an inventory velocity of 6.4.
Run the report via the Inventory Velocity Report page
See Generate reorder suggestions for detailed information on running the report, viewing reorder suggestions, and generating replenishment purchase, transfer, and production orders to fulfill your stock demands.
Schedule the Inventory Velocity Report
Users who have the Automation module added on to their subscription can automatically run the Inventory Velocity report on a schedule and send out reorder suggestion emails to the intended recipients.
Go to Reports → Sales reports, then click Inventory Velocity Report.
On the header section of the Inventory Velocity Report page, click the Scheduling icon.
Enter, then select the report name from the list, then click Next.
On the next page, choose the layout for the report, select the desired report interval (7, 14, 30, 60, and 90 days) from the list, then click Next.
Select a start date, frequency, mailing list, and report format from the lists.
Click Save. The report will then be run depending on the start date you specified in Step 5.
FAQs
Why are deprecated SKUs showing in the Inventory Velocity Report?
When stock is still available it will still show deprecated products in the report. Only when the stock is 0 will these products no longer show in the Inventory Velocity Report.
The numbers in the Inventory Velocity Report are not making sense. What could be wrong?
Check first that reorder parameters of the products are correctly configured.
We have a couple of products that are the base product for many other sale items. We have created BOMs for these and in terms of stock control it works fine. The problem we have is the sales of the final product are not linked to the base product and so they do not get properly reported in the inventory velocity or low stock reports. Can you please advise me how best to set this up?
The inventory velocity report does not currently have the ability to show movement of components from the finished goods details. Please check our Materials Requirements Planning (MRP) and MRP for production articles as this feature is more likely to meet your needs.
I am getting two different figures between the Inventory Velocity Report and the Product Availability Report can you please explain why?
The quantity shown in the inventory velocity report in fact matches the quantity shown in the product availability screen. However, as the Velocity report is designed for product re-ordering it shows quantities based on suppliers and locations. So the correct quantity is only reflected in the figures for each line of each column. In the case of multiple suppliers, the report will take into account lead times, safety levels, reorder quantities, and minimum re-order quantities for each supplier and each location and identify the most efficient supplier from which to re-order the product.
I have a client which tracks consumption of packaging materials via stock adjustments. Will stock adjustments be used in the calculation of the rate of stock consumption?
Stock adjustments are not recorded in the Inventory Velocity Report. The Inventory Velocity Report takes sales, assemblies, disassemblies, and write-offs into account.
When running an inventory velocity report I want to know if a product is sold as its own SKU and also is a component of a BOM, do both numbers get reported? or example, BLACK-A (SKU) is sold as an individual product as well as a case of 6, PDACASEBLK (SKU). If we sold a quantity of 10 of BLACK-A and a quantity of 10 of PDACASEBLK, we have sold a total quantity of 70 of SKU BLACK-A. I am wondering if the velocity report works like that or do I have to search for each SKU individually.
If you have an SKU which is sold as it is and is also a component for a BOM, then the velocity report calculations will take into account the assembly components as well as the single component.
Can you advise me how we can deal with spikes in sales in the Inventory Velocity Report? ie. can we adjust sales velocity to remove or readjust for certain spikes of sales that happen in a certain period?
It is not possible to manually amend the sales velocity. It takes the value from the sold units.
After checking the velocity report, the velocity calculations seem wrong. The reporting period is 14 days, but some velocity values do not divide the units sold by 14. This only happens with some items. Is there a setup problem with the data or is there a problem with the velocity report?
When the Velocity value is calculated, we calculate it as {Units Sold}/{X}. {X} is usually the reporting time (14 days in this case), or it can be the number of days since the product has been added to Stock first time, if it was added recently. If the velocity calculation looks to be divided by another number, check if that product was recently added to your inventory.
Still no answer to your question? Please do not hesitate to get in touch with Cin7 Core support.