What is Consumption?
Consumption is your usage of products between any two inventories. Upon completing an inventory, you are emailed a copy of your consumption report and you can also view it on the WISK Web Portal.
WISK displays your consumption in units, ounces, and the dollar amount.
Consumption = Starting Inventory + Invoices - Ending Inventory
In order to get accurate consumption data, you need to make sure that you are taking accurate inventory counts, and adding all of your invoices into WISK.
Consumption is important because it is used to:
- Identify overstock, deadstock, understock
- Calculate WISK Par (suggesting how much to order of an item)
- Determine your variance (if sales are being pulled into WISK)
Stock Errors / Negative Consumption
This occurs when your stock of an item increases between inventories without an explanation. Possible causes include:
- Forgot to add invoices during the inventory period
- Added an invoice but the date and time is incorrect
- An item in your inventory was miscounted
For example, if you went from 10 units of Heineken, to 56 units:
Starting Inventory (10) + Invoices (0) - Ending Inventory (56) = Consumption (-46)
In this case, we would need to make sure we have added all of our invoices, and that they were added for the correct date and time.
Always correct stock errors where possible because it will affect all calculations that use consumption.