Inventory Analytics & Reporting

Objective of Service

What is inventory analytics? From production or source to selling point or point of distribution, the goods or inventory travel across the supply chain to reach the end-user. At every stage, data records pertaining to this inventory are created and such data enter into the business IT systems. When an organization uses this data for scrutiny and analysis to gain meaningful information and insights or to make predictive assessments for the future, then this activity is called inventory analytics. In other words, we can simply call it the use of data analytics in inventory management. The output from inventory data analytics are used for inventory optimization, a better understanding of market demand (actual sales), better financial conduct of business, improved quality control, reduced supply chain costs, etc. Among these, the use of predictive analytics for inventory optimization is most common.
Through this service program, DFX offers inventory analytics advisory and consulting services to businesses across a wide number of industries.

Benefits of Inventory Analytics

The use of data science in inventory management has assumed greater significance from the last decade mainly owing to increasing digitization and the advancements made in the field of inventory management software analytics.

• Keep track of your fast movers and discard slow movers
  Slow movers or slow-moving inventory refers to those goods that have not moved from a warehouse for a long time. The standard of this duration varies from industry to industry. Slow movers are not good news for businesses. They take up space. Investments get stuck in those goods. Reasons why slow movers are created include inaccurate demand forecasts, lost market share due to competition, general fall in market demand, poor marketing and sales performance, etc. On the flip side are fast movers. These goods get sold very quickly and thus, they do not remain guests to warehouses and stores for too long. There is a third category called Non-moving inventory.
  Businesses need to get rid of the slow-moving and non-moving inventory and focus on the fast movers. In other words, this classification (FSN Analysis) lets businesses better understand market demand based on actual sales. Inventory analytics helps businesses keep track of their inventory movement and classify goods in the FSN categories across segments. This is one of the answers to how data analytics help in inventory planning strategy.
• Cash flow management for inventory procurement
  Inventory and cash flow are two aspects that do not want to be seen together but they affect one another. The inventory you pile up accrues a bill that will affect your business’s cash flow. The inventory turnover you can achieve affects revenue; again affecting the cash flow. Let us elaborate on this. If you hold unnecessary inventory, your cash flow will be adversely affected to that unnecessary extent. On the other hand, if you maintain inventory less than that which is required to fulfil the projected demand, you will have lesser sales which in turn will affect your cash flow. Inventory analytics lets businesses bring out the intricate numerical correlation between inventory control and cash flow. Having such insights help businesses towards ensuring that procurement planning and purchase decisions remain aligned not only with the demand forecasts and standards of inventory management but also with the cash flow objectives.
• Quality checks and compliance management
  From production/source to selling point or point of distribution, the goods or inventory travel across the supply chain to reach the end-user. At every stage, data records pertaining to this inventory are created and such data enter into the business IT systems. With inventory analytics, it becomes possible for businesses to analyse this data on QC parameters. Businesses can measure the performance of the supply chain points on QC and compliance standards pertaining to the inventory they processed. It can also trace back the source of rejected goods. All this information and insights can be used to identify strengths and weaknesses in the supply chain process in maintaining the standards of quality control and compliance management.
• Inventory supply-chain analytics to reduce cost and turnaround time
  The inventory-related data generated along the supply chain movement is gold for businesses. How smoothly and efficiently inventory moves in the supply chain for a business can provide powerful insights for improvement in the critical path and identify opportunities for savings. The quicker the movement of inventory is, the greater will be the flexibility in delivering and fulfilling customer demand. Today’s eCommerce players immensely benefit from inventory supply-chain analytics. It helps them identify opportunities for saving time and money in the flow of inventory in the supply chain extending up to last-mile delivery. It gives them a competitive edge in distribution in terms of efficient supply chain activities and quicker delivery to customers. These insights could be so powerful that they can lead to the generation of new business models.

Why DFX for Inventory Analytics & Reporting?

With over eight years of experience, DFX represents an expert team of professionals. We offer inventory analytics advisory and consulting services to businesses across a multitude of verticals. From assessment to recommendations, we follow a planned, proven, and systematic approach in delivering our services maintaining the best standards that let us deliver high-quality insights with actionable reporting.
If you want to know more about our inventory analytics consulting services, drop us a message and we shall be happy to reach out to you.

Inventory Analytics and Reporting

Inventory control is done by every business but not everyone is proficient at it. With an extension of the supply chain and distribution network, increase in merchandising, alterations in channels, managing returns and exchanges, overcoming predictable fluctuations in demand and supplies, etc., inventory control remains a utopian dream. Analytics can nosedive into this challenge and help businesses deeply understand inventory behaviour over time based on a variety of factors like market demand, process consumption, transit time, wastage rate, returns and replacements, timelines, etc.

This topic shall cover in detail the utility of inventory analytics and reports in maintaining optimized inventory levels across the supply chain and distribution network through informed, timely and accurate planning and decision making.

Predictive Analytics

Objective 1: Early Warning Signals

Predictive analytics help in identifying possible future outcomes based on past data. These assessments can serve as early signals for business opportunities or threats and provide time for corrections and adjustments in product design, strategies and operational planning.

Objective 2: Easy and informed decision-making

Predictive analytics is based on statistical modelling and estimations, sometimes using advanced technologies like Artificial Intelligence and Machine Learning. This puts businesses in a more informed position (data evidence wise) to support their decisions or withhold one.