Everything in a successful business will always involve planning. Purchasing is an attempt of acquiring products or services for a business or enterprise. 

From the smallest to the largest of shops, planned purchases account for a substantial portion of the earnings. Effective purchase planning is a cornerstone of successful business operations. It ensures that businesses maintain optimal inventory levels, meet consumer demand, and manage cash flow efficiently. 

Understanding the age of your inventory is crucial for running a successful business. The Inventory Aging Report breaks down your stock into different age groups, showing you where your items are sitting around too long. This helps you make informed decisions about what to reorder, what to discount, and what to promote.

The sell-through rate is one important inventory measure that helps in demand forecasting. This rate is used to predict product demand, purchase the appropriate quantity from suppliers and steer clear of price reductions/discounts, ultimately increasing profit margins. 

Retailers use the sell-through rate to estimate how much and how quickly they can sell the inventory thereby determining how effectively they are turning over inventory and to estimate how soon they can turn a product’s initial investment into income.