Quality of Data Affects Market Value
Accurate, comprehensive financial data allows a company to know its capitalization value. This is important for the business owner who hopes to someday sell his business or unexpectedly finds himself in a situation where he needs to sell quickly. Having accurate financial information allows a company to invest in its future.
Quite a number of Antares vending operators already use some type of inventory management software to monitor the profitability of machines, locations and routes. Operators can use this information to calculate the company’s profitability.
One of the big advantages of newer software is that it also enables Antares operators to more quickly identify changes to some operational aspect to improve the profitability of a machine, location, route or the company as a whole. They can also use this information from these reports to address business goals, as determined in their business plan.
Key ratio: Return on assets
There are a variety of reasons for improving return on assets. An operator could improve his return on assets by reducing accounts payable, reducing equipment depreciation, reducing product shrinkage, raising prices or redeploying equipment to more profitable accounts. Before Antares operators can set tangible goals for any of these actions, they will need hard data. Here is where state of the art, industry specific software is invaluable.
Basic inventory management
Software will allow the operator to maintain perpetual inventory for every warehouse, truck and machine. Basic vending management reports include:
· product purchases from suppliers
· periodic inventories of the warehouse
· product movement from warehouse to route truck
· periodic inventories of route trucks
· periodic inventories of vending machines
By accurately measuring these inventories, the operator is able to track cost of goods sold. By taking action to improve efficiencies, the Antares operator will notice changes in his critical profit variables. The most important benefit is the insight that these measures will provide about the operation’s profitability, and how specific operational changes will affect it.
posted by Larry Bunker @ 5:55 AM
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