In the world of fashion, inventory is the lifeline of your business—every piece in your warehouse represents both potential profit and operational precision. However, understanding inventory at each stage of its journey is just as critical as knowing how much you have in stock. A common misconception is to deduct inventory as soon as it’s allocated or boxed up for an order. But here’s the truth: until an order is fully fulfilled and the goods have left the warehouse, that inventory is still physically present, albeit no longer available for sale.
This nuanced understanding is where ApparelMagic’s powerful stock calculations come into play. By providing clear visibility into the stages of your inventory—from allocation and picking to shipping and replenishment—we ensure your inventory figures remain accurate and actionable. In this guide, we’ll explore how ApparelMagic’s advanced formulas help you track inventory movement, maintain operational clarity, and make informed decisions that drive your business forward.
Key Stock Calculations in ApparelMagic
To better grasp the movement of inventory within your business, ApparelMagic employs a series of calculations designed to reflect the true state of your stock at any given moment. These formulas break down the status of your inventory across all stages—from arrival to allocation and beyond.
Here’s how each calculation works:
- Inventory
Inventory = Everything received + Everything returned (via Credit Memos) - Everything shipped (via Invoices)- Open Sales
Open Sales = Open Customer Order Items- Available Now (Avail Now)
Avail Now = Qty Inventory - Open Sales- Work-in-Progress (WIP)
WIP = Open Manufacturing Project Items + Open Finished Goods PO Items- In-Transit
In-Transit = Units designated as in transit on receivers- Available to Sell (Avail Sell)
Avail Sell = Qty Inventory + Qty WIP + Qty In-Transit - Qty Open Sales - BOM Demand Pass-Through - Bundle Demand Pass-Through- Need to Buy
Need to Buy = Inverse of negative availability as demand, factoring in minimum reorder quantities and minimum inventory levels- Picked Inventory
Picked Inventory = Number of units in picked status- Allocated Inventory
Allocated Inventory = Number of units in allocated status- Available to Allocate (Avail to Alloc)
Avail to Alloc = Qty Inventory - (Qty Allocated + Qty Picked)
Why Inventory Calculations Matters in Fashion Inventory Management
Fashion businesses deal with fluctuating demand, seasonal cycles, and the challenges of keeping a diverse product range available. Mismanaging inventory—whether by prematurely deducting it or failing to track its stages—can lead to overstocking, stockouts, or inaccuracies that hurt customer trust and bottom lines.
ApparelMagic’s methodology ensures you have a clear understanding of where every piece of inventory stands at any given time, empowering you to:
- Make Better Decisions: Avoid unnecessary reorders or production runs by knowing exactly how much is truly available.
- Improve Customer Satisfaction: Prevent stockouts and fulfill orders on time by allocating resources accurately.
- Streamline Operations: Maintain visibility into all stock stages—picked, allocated, in transit, and more.
Revolutionizing Inventory Management with ApparelMagic
Fashion inventory management isn’t just about knowing what’s on your shelves; it’s about tracking every movement of every item. From the moment inventory is received to the point it leaves your warehouse, every stage plays a critical role in ensuring efficiency and accuracy.
ApparelMagic’s suite of stock calculations and management tools goes beyond the basics, offering unparalleled visibility and precision to fashion businesses of all sizes. Whether you’re tracking inventory across multiple locations or managing complex supply chains, ApparelMagic keeps your operations running smoothly.
