Vendor Inventory Walkthrough

Find out how you can check whether you have enough inventory in the Amazon warehouse.

We use the Vendor Inventory to get this information!

1. Where to find your Inventory data in emax digital 

2. Inventory Dashboard Insights

3. KPI Definitions

4. Use Cases


Where to find your Inventory data in emax digital 

To get started, log in to the emax digital tool and navigate to the Inventory Dashboard in your Hub -> Performance -> Inventory Dashboard ➡️ VC . Depending on your account type, you will be directed to the Vendor Central (VC) interface.


               

Here you can check for which products you have ASINs that are:

  • Out of Stock: Inventory Level is 0
  • Critical Stock: Run Rate is less than 3 days
  • Low Stock: Run Rate is between 3 and 7 days
  • Sufficient Stock: Run Rate is greater than 7 days or the product had no sales during the last 7 days and the Inventory Level is 0
  • Overstock: Run Rate is greater than 84 days
  • ASIN not in AMZ report: No inventory information available from Amazon for the last 30 days

Here we calculate the Run Rate in Days based on the Historic Data of 7 and 30 days. Additionally we calculate the Forecasted Run Rate with the Forecast Amazon gives you.

Forecasted RR = (current AMZ stock + open POs) – (Sum average forecast week 1 – 4)


Inventory Dashboard Insights

  • Inventory KPIs: The dashboard provides important Amazon key performance indicators (KPIs) that help you monitor inventory health, including stock levels, sales velocity, and forecast coverage.
  • Forecasting and Run Rate: Understand your inventory’s coverage for the upcoming weeks. Our forecasting KPI calculates when your stock will be depleted based on current sales speed and open purchase orders. 
  • Unhealthy Units: Identify units that are not performing well, including slow-moving or excess inventory, and take action to improve their turnover.

Amazon suggests that the best way to get rid of unhealthy units by offering price discounts via deals or vouchers. 

  • ASIN-Level Insights: Detailed information is available for each ASIN, allowing you to make precise adjustments and plan Born2run in case it is necessary. 


 

KPI Definitions

Stock Category: 

Gives an indication if you have enough items in stock given the average sales speed of the past 7 and 30 days:

  • Critical means that you have items in stock for only about 3 days left
  • Low means that you have items for about 3 to 7 days on stock
  • Sufficient means that you have items for more than 7 days left in stock


Run Rate [Days]: 

Describes how long it will take until the items in stock are sold out. If the number is negative, it shows how many days Amazon will be out-of-stock in case they order new units today. The Run Rate is calculated by the following formula: (Sellable-On-Hand-Units / Sales Speed [7days]).

Time to Action: 

Describes how long it will take until the items in stock are sold out. If the number is negative, it shows how many days Amazon will be out-of-stock in case they order new units today. The Time to Action is calculated by the following formula: (Sellable-On-Hand-Units / Sales Speed [7days]) - Vendor Lead Time.

Sales Speed: 

Is composed of the Average Ordered Units  per day for the displayed time frame in the column. This way you can see how many units on average are ordered per day in 3, 7, and 30 days. Therefore, the higher the Sales Speed, the more units are ordered on average.

Forecast Units: 

Shows the sum of the Mean Forecast Units for the next 4 weeks from Amazon's Vendor Forecasting Report. 'Mean' is Amazon's best estimate of weekly customer demand, compared to the P70, P80 and P90 forecasts.


Coverage Forecast: 

Shows whether your in-stock level covers Amazon's forecasted purchases (Do I have enough in-stock to cover demand from Amazon?). Coverage Factor can be customized to your needs in the filters (default = -10).
Calculation of forecasted inventory: Inventory Level Open Purchase Order Quantity - Mean Forecast Units compared to Coverage Factor.

  • Not Covered: When <= Coverage Factor 
  • Covered: When > Coverage Factor


Vendor Lead Time [Days]:
 

The time from when a purchase order is placed until the units are ready and available to sell or ship off the shelf.


Vendor Confirmation Rate: 

How many units vendors confirm out of the units Amazon asks for, accounting for procurable ASINs only. Vendor Confirmation Rate = Quantity Confirmed / Quantity Submitted.


Inventory Level: 

Is the sum of the Sellable on Hand Units e.g. the number of items in stock.

Open Purchase Order Quantity: 

This shows the number of units that Amazon ordered from you but which are not fulfilled yet. 

Glance Views: Average number of times a Product Detail Page is viewed per days in the past 30 days.



Use Cases

Prevent Stockouts with Critical Stock Alerts

If you notice that certain ASINs are categorized as "Out of Stock" or "Critical Stock" (run rate < 3 days), analyze the Time to Action KPI to determine how long you have before products sell out completely.

Action
: Expedite purchase orders and adjust your Vendor Lead Time to ensure timely replenishment and avoid loss of sales.

Optimize Promotions to Address Overstock

If your dashboard shows that some ASINs have a Run Rate > 84 days, categorized as "Overstock," this is an opportunity to clear inventory.

Action
: Launch time-limited promotions, such as price discounts, deals, or vouchers, to clear slow-moving inventory.

Improve Your Vendor Confirmation Rate

If your Vendor Confirmation Rate KPI shows a low confirmation percentage, it may indicate that you are unable to fulfill all units Amazon requested.

Action
: Investigate supply chain bottlenecks and work to improve production planning, ensuring higher confirmation rates and maintaining a strong partnership with Amazon.

Track Inventory Levels for Seasonal Peaks

During peak shopping seasons, such as Black Friday or holiday sales, monitor the Inventory Level KPI to ensure sufficient stock for high-demand ASINs.

Action
: Adjust open purchase order quantities and use historical data to ensure your inventory levels align with expected sales velocity.

Reduce Unhealthy Units

Identify "Unhealthy Units" through the dashboard—products with low sales velocity or high Run Rate.

Action: Strategize actions such as bundling products, offering discounts, or creating attractive deals to improve turnover.

 

Use ASIN-Level Insights for Strategic Planning

The dashboard provides ASIN-level insights into which products are low-performing (Run Rate) or overstocked. If you identify a product with low Glance Views and excess inventory, this is an opportunity for optimization.

Action
: Optimize the product listing (e.g., improve images or descriptions) and invest in targeted advertising to increase traffic and reduce excess stock.