Why Metrics matter

We track operational and financial metrics, we have blogged about it before. We do a good number of them, because like playing chess, you need to see the whole board.

Analyzing this month’s numbers, I saw a chart that made me pause. Then, went looking for other numbers that reassured me of how I should interpret the first chart, rather than jump into crisis mode.

Our inventory level in dollars has been climbing steadily. While we like to be able to meet customers’ needs as timely as we can. We don’t want to be tying up cash at the same time. We are also aware of companies that fell into dire straits buying in higher quantities to get lower price breaks to keep their costs down and margins acceptable. That also carries the hope that there will be future orders to consume the extra inventory. Which is not always the case.

Naturally we have been growing in revenue, so an increase in our inventory is expected. But is it within reasonable or more importantly, cash flow limits?

Referring to another metric chart quickly dispelled our concerns that our inventory level is in line with our revenue growth and we can continue to focus our efforts on more important tasks than inventory growth.

Does your injection molder track KPIs? Do they know what the health of their business is? You can ask and see for yourself.

PlastiCert prides itself and knows where it has been, where it is at and where it is going. It is the kind of supplier you want to partner with, to prevent unnecessary stress or even shut down.

Need less stress in your supply base? Give PlastiCert a call. We are always on an even keel!