Days of inventory on hand driven advertising
Drive inventory turnover by automatically prioritizing ad spend on products with higher days of inventory on hand (DOH).
Objective
Develop a strategic approach to sponsored product campaigns that prioritizes products based on their Days of Inventory on Hand (DOH). This method aims to balance inventory levels, optimize working capital, and increase sales velocity for slow-moving items while ensuring efficient use of advertising budget across your entire product range.
Key benefits
Balanced inventory levels
Improved cash flow
Reduced risk of obsolescence
Data-driven ad spend optimization
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How it works
mimbi calculates Days of Inventory on Hand (DOH) by integrating sales and inventory data from multiple sources. Based on DOH levels, it automatically adjusts ad campaigns to focus more budget on slow-moving items with high inventory.
Multi-source data integration
Use mimbi COLLECT to import and centralize your inventory data, sales data, and forecasts from various sources such as e-commerce platforms, inventory management systems, or ERPs.
Days of Inventory on Hand calculation
Leverage mimbi TRANSFORM to calculate the DOH for each product using the formula: DOH = (Current Inventory / Average Daily Sales) or import values from your existing tools. Optional:create a SCOPE that categorizes products based on their DOH status (e.g., high DOH, optimal DOH, low DOH).
DOH-based campaign creation
Utilize mimbi's campaign creation tools to automatically generate campaigns focusing on products with high DOH. Set up rules to adjust bid strategies and budget allocation based on DOH levels, ensuring that slow-moving items with high inventory receive more advertising focus.
Dynamic campaign management
Implement mimbi's automation features to continuously monitor DOH levels and adjust campaigns accordingly. This ensures that your advertising efforts are always aligned with your current inventory situation and sales velocity.
Consolidated multi-country Amazon account stats
Granular insights beyond standard reporting
Target vs. actual metrics variance analysis
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