IQR Financial Analysis of Inventory Costs

An Inventory System for

Improving

Inventory

Performance

IQR

Inventory Quality Ratio

1-626-836-9261

info@inventoryperformance.com

Text Box: Free analysis of your inventory Free report defining your savings opportunity

Text Box: See IQR at work See the IQR analysis process and inventory reduction tools

Text Box: Contact us about IQR Schedule a demo of IQR See how IQR affects the bottom line Measure inventory performance with IQR

Certified IQR affiliate

Phone: 626-836-9261

Email: nfo@Inventoryperformance.com

Text Box: Inventory Quality Ratio gives you all the information you need to manage cash flow and working capital Current cash invested in inventory by category Current cash invested in inventory by segment Possible reductions in inventory investment Impact of reductions on financial reserves Increase to profits from inventory reduction Analysis of inventory investment trends Contact us today to get a FREE analysis of your opportunity to improve your cash position and increase profits. In as little as one hour, you and your colleagues can see the detailed results of the analysis and the best ways to improve cash flow and reduce your need for working capital. We will provide you with a comprehensive analysis of your inventories and point out immediate opportunities for significant savings. The FREE analysis will include: Current cash invested in inventory by category Current cash invested in inventory by segment Possible reductions in inventory investment Impact of inventory reduction on financial reserves Increase to profits from inventory reduction

For most manufacturing and distribution companies, inventory is one of the biggest items you have to fund from your pool of working capital. Having the right quantity of the right material at the right time, and no more than that, is the best way to improve cash flow and reduce the need for working capital.

The good news is that you have the ability to decrease the amount of working capital you need and to increase cash flow right now! The Inventory Quality Ratio (IQR) tool shows you where your opportunities to manage cash lie and gives you the actionable information you need to realize those opportunities.

IQR is used by over 300 companies world wide to help develop meaningful objectives, for both inventory levels and increased profits. They use IQR to create specific “What if” scenarios to analyze their opportunities to free up working capital.

To see how IQR can help you manage cash, contact us today and request your FREE analysis

IQR is a measure of financial performance

Inventory is one of the two elements in the business cycle that absorbs cash - (the other is Receivables—debtors owing you money). IQR helps you reduce the amount of money tied up in inventory (e.g. reduce inventory levels relative to sales), so the business will generate more cash or it will need to borrow less money to fund working capital. As a consequence, IQR helps you reduce the cost of bank interest thereby increasing profits or IQR gives you additional free money available to support additional sales growth or investment.

Managing inventory is a juggling act. Excessive stocks can place a heavy burden on the cash resources of a business. Insufficient stocks can result in lost sales, delays for customers etc. IQR provides a measure of inventory performance so you know how quickly your overall stock is moving or, how long each item of stock sits on shelves before being consumed or sold.

The key issue for a business is to identify the fast and slow stock movers with the objectives of establishing optimum stock levels for each category and, thereby, minimize the cash tied up in stocks. IQR gives you the actionable information you need to manage every category of inventory.

Click to learn more about IQR as a measure of inventory performance