Merchandisers receive purchase orders from vendors at different times and across various stores and warehouses, often at fluctuating prices. Managing these varying costs while maintaining accurate inventory valuation is important for financial planning and making informed business decisions.
The WAC method offers a simplified approach to address these challenges by calculating an average cost per unit over time, considering all purchase transactions.
HotWax’s BI Reports & Analytics platform now provides real-time visibility into WAC, enabling retailers to track both historical and current costs across different locations. Historical WAC provides insights into cost trends over time, while current WAC reflects the latest cost per unit, allowing for better decision-making in procurement and pricing strategies.
How does this help?
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Consistent Cost Evaluation: Merchandisers gain a comprehensive view of product costs across all stores, enabling uniform pricing strategies and reducing discrepancies.
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Improved Financial Planning: Access to both historical and current WAC helps businesses analyze procurement trends, optimize supplier negotiations, and improve cost forecasting.
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Simplified Inventory Accounting: WAC eliminates the complexity of tracking individual purchase costs, providing a clear and consistent method for cost calculation.
HotWax’s reports simplify WAC tracking, allowing retailers to quickly adjust pricing and optimize procurement strategies and gain visibility over inventory costs.
