March 10-12^th marks the International Fast Lube Expo (iFlex) that will take place in New Orleans, Louisiana.  ISI’s very own Howie Loewen has been selected to lead an educational session titled: Inventory Management: Understanding How Inventory Turnover Impacts Cash Flow.

Howie will highlight key concepts of inventory management and train on the impact inventory turnover has on cash flow.

Inventory management is essential in running a profitable business, especially in the retail sector.  Real time data is pivotal in running a successful lube shop, which is why accurate inventory records and understanding the specifics of your store’s volume determines cash flow.  Without accurate records, your inventory control is compromised. The purpose of inventory management is to know the quantity of product available, what is in use and the amount being sold.  LubeSoft^® makes it easy to oversee the constant flow of inventory with precise tracking software to make inventory management efficient and accurate.

Cash flow is determined by the inventory turn ratio.  The inventory turn ratio is determined by dividing the monthly cost of goods by the average inventory.  Ideally, inventory turns should range between .75 to 1 turn/month at a minimum.  By increasing the inventory turns at a higher rate, cash flow is significantly improved.

The presentation will also include in-depth information on:

• Top inventory mistakes
• Cyclical Count calendar
• Add-on goods and services
• Cost of Goods Sold

If you are not able to attend the presentation but would like to learn more about inventory management, check out Howie’s article that was featured in NOLN last year.

About Howie:

Howie has more than 35 years of experience in the fast lube industry and is one of the nation’s most respected fast lube consultants.  With ISI since 1993, Loewen works as a consultant to single and multi-store operators, helping them fine-tune their operations.