Improve your business sales cycle for inventory with airSlate SignNow

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Hi I'm Will from Unleashed. In this video i'm  going to explain cycle inventory now we can   break cycle inventory into two groups we have  our cycle stock and we have our safety stock   now cycle stock is used to describe the inventory  that we keep on hand to service our regular sales   cycle so we should have a good idea about how  many units we sell within each season that is   our cycle stock we also have our safety stock that  is our buffer so if we run out of cycle stock we   dip into our safety stock so how much cycle stock  should we keep and how much safety stock shall we   keep on hand now with our cycle stock we want to  be analyzing our historic sales patterns and also   keep in mind what our lead time is does it take us  one week for new stock to arrive in our warehouse   or does it take three months for our shipment to  arrive in our warehouse so that should help you   determine how much cycle stock we should keep our  safety stock is completely up to you but you want   to be aware of what orders might come through  that might deplete all of your cycle stock now   it's important when you're making these decisions  to consider the fact that holding inventory costs   you money you can either have cash in the bank or  you can spend that cash on inventory so if we have   too much inventory we may not have enough cash  in the bank to place orders with our suppliers   whereas if we don't have enough cycle or safety  stock that means that we may not be able to   service orders our customers place with us which  upsets our customers and can long term damage   our relationships with our customers so to briefly  summarize that our cycle stock is there to service   our usual sales cycles where our safety stock is  there as a buffer if we run out of our cycle stock   to understand how much cycle stock we should have  on hand we need to look at our sales patterns   historically within each season and also how  long it takes for us to get new stock into our   warehouse our safety stock is entirely up to you  but you need to keep in mind that it does cost   money to keep inventory in your warehouse so i  hope that was useful for you if you'd like to   see that in action and unleashed click this link  to another short video that i've made if you'd   like to learn more about the software itself click  through to our webinar page for an in-depth tour