World experience is evidence that the growth of wholesale trade today depends on the following trends in the economy: production growth in large-scale companies that are remote from leading manufacturers of the finished product; expansion of production for future use, and not with the aim of fulfilling previously concluded agreements; increase in the number of levels of intermediate users and manufacturers; the aggravation of the need to adapt marketable products to the needs of both end and intermediate users in terms of product varieties, its packaging and quantity.
Introduction
Before you consider the analysis of inventory and turnover, it is advisable to discuss the fundamental aspect. The key transformations in organizing and further conducting wholesale trade are primarily aimed at creating a competitive environment, empowering wholesale trade of other individuals and legal entities, as well as restructuring activities, taking into account international experience.
The idea of structural adjustment of this type of trade indicates the transformation of wholesale production and trade outlets into systems capable of providing independent regulation and forecasting events in the consumer market; the creation of different parallel wholesale structures; removing obstacles to the segregation of separate units or small forms of organization of this activity in wholesale enterprises voluntarily; non-interference in the activities of wholesalers; removal of restrictions related to turnover between regions; the formation of wholesale and retail companies.
And now it is advisable to move on to inventory turnover. The main purpose of wholesale trading is the organization of a continuous and rational supply of marketable products to both large industrial enterprises and retailers. An important role is played by ensuring the balance of supply and demand. Consider this issue in more detail.
What is inventory turnover?
The decrease in the profitability of sales of separate groups of goods in the case of simultaneous acceleration of their turnover, as a rule, leads to an increase in the profitability of the structure. The movement of stocks of commodity products together with sales turnover involves the installation of one of the most important economic indicators. This is turnover.
Today, turnover is understood as the time of circulation of marketable products from the day of its receipt and immediately until the day of sale. In addition, we are talking about the turnover rate of both raw materials and goods that need to be bought. Turnover - is a description of the processes of re-updating stocks of marketable products in the organization of the supply and marketing type or at the trading company.
Turnover and performance
It is worth noting that turnover is one of the main indicators of the effectiveness of the economic activity of the trade enterprise as a whole. It allows you to quantitatively measure and evaluate two parameters that are inherent in stocks of a commodity product. This is the time and speed of circulation. In other words, you need to calculate how much time it takes for a certain number of revolutions. Turnover can be expressed both by the number of days that are needed to complete one turnover, and by the number of turns realized for a specific time period. The economic meaning of the presented indicators is similar, but there is a difference in the methods of determination.
It is necessary to add that here we are talking about the turnover of money that is invested in stocks of marketable products. In addition, it should be understood that the time taken for a certain number of revolutions shows how quickly the product will be sold and how soon the costs of its production and further circulation will be reimbursed.
Speed and acceleration of turnover
As mentioned above, in order to characterize the speed of circulation of marketable products, it is customary to use also an indicator showing the number of revolutions for a certain period of time. The turnover in days to turnover in terms of the country's trade describes the length of time a commodity product has been in the circulation process, from the moment of production to the moment the goods are sold to consumers.
As a result of the analysis of turnover, it was found out: if the turnover of money invested in stocks of commodity products is accelerated by one day, then the amount equal to the average sales per day is released from the trading sector. Today, both trade and other sectors of the economy have been given the task of organizing financial and economic activities in such a way as to prevent excess inventories of inventory and also to accelerate the turnover of all monetary and material resources.
Speed and time of circulation
As it turned out, turnover is the time during which the goods are sold in the amount of its average value for the reporting period. So, indicators of speed and time of circulation of marketable products are closely related. Moreover, the dependence is inversely proportional. Reducing time and maximizing the speed of commodity circulation in one way or another increase the volume of turnover with smaller sizes of stocks of goods. This alignment significantly affects the reduction of costs associated with the storage of a commodity product, reducing the loss of goods and so on.
Turnover is an economic indicator that should be studied in general trade. In other words, one should pay attention to the stocks of commodity products of the wholesale structure also in the retail network that it serves. To calculate this indicator in days of trading as a whole, it is necessary to divide the average inventory of commodity products that are in retail and wholesale trade by the actual turnover of commodity products of the retail network per day, including the turnover of the small wholesale type of the wholesale structure.
Seasonal goods
When analyzing stocks and turnover, in addition to stocks of a commodity product of current storage, it is advisable to pay attention to the goods of pre-delivery and seasonal storage. It is important to note that in this case, it is important to study the process of completing tasks related to their accumulation in the appropriate assortment and volume, since the lack of these inventories or their qualitative discrepancy in one way or another has a negative impact on wholesale sales as soon as the season begins.
Calculation of turnover
The circulation time of commodity products or turnover in days is determined on the basis of information on average stocks of a commodity product and turnover according to the following formula:
About day = (TK cf * D) / (T / V) or About day = TK cf / (T / V one ),
- Where About the day - turnover in days;
- TK cf - average stocks of marketable products for the required period (RUB);
- T / O one - one -day turnover for the same period (rub.);
- T / V - the volume of trade for the same period (rub.)
- D is the number of days in a given period.
According to the formula of the average chronological moment series, inventory is calculated for the period that is analyzed:
TK cf = (TK 1/2 ) + TK 2 + TK 3 + .... + (TK n / 2)] / (n-1),
- Where TK cf - the average stock of marketable product for a specific period (rubles);
- TK 1, TK 2, TK 3 .... TZ n - the value of stocks of goods at specific dates of the analyzed period (rubles);
- n is the number of dates for which the value of stocks is taken.
It should be added that the turnover in days of turnover reflects the time for which stocks of marketable products are in circulation. In other words, we are talking about the number of days during which the average stock of a commodity product turns around.
Calculation of the velocity of goods
The velocity of circulation of marketable products, that is, turnover in the number of turns, can be calculated by the formula:
About p = (T / V) / TK cf or About p = D / About days ,
- Where About r - turnover in the number of revolutions;
- About days - turnover in days of turnover of marketable products;
- TK cf - the average stock of marketable products for the same period (rub.);
- D - the number of days in this period.
Explanations
As mentioned above, the turnover in the number of revolutions reflects the number of revolutions of the average stock of marketable products over a certain period of time. There is an extremely stable relationship between the speed and time of circulation of goods, which is inversely proportional. An increase in speed and a decrease in the circulation time of marketable products implies the realization of a substantial volume of trade with smaller stocks of goods. This contributes to the fact that commodity losses are reduced, and the cost of paying interest on loans and storage of commodity products are reduced.
Ways to accelerate turnover
Turnover should be understood as one of the most important indicators of the effectiveness of economic activity. Its acceleration characterizes the improvement of this type of activity, and vice versa. Accelerating the turnover of marketable products is the main task that any trade unit faces with insufficient working capital. The longer the period of time a commodity product is in stock, the greater the cost of its maintenance. One of the methods for the effective management of product assortments is the correct combination of a marketable product with a high level of profitability for this type of activity, however, with a relatively low level of turnover, as well as goods with lower profitability, but high turnover.
What affects the turnover?
In conclusion, it would be advisable to consider the main factors that have a significant impact on turnover. The first is demand fluctuations. If the supply of marketable products lags behind demand, the turnover of these goods is accelerated. Secondly, this is the volume of retail turnover. For trade enterprises with a large volume of turnover, the presence of a sufficiently large number of stocks of marketable products and accelerated turnover is characteristic. In addition, the physicochemical and consumer properties of marketable products are able to lengthen or limit the turnaround time.