How can analytics help me manage my warehouse inventory
Q: How can analytics help me manage my inventory?
A: Managing inventory can be tricky and staying on top of counts, quantities, sales orders, purchase orders, cost, rate, and velocity can be challenging for the most savvy spreadsheet individual. Having detailed analytics can help with projections, maintaining proper stock levels, preventing obsolescence of inventory and ensuring you are managing your inventory in a responsible way.
Analytics can be placed into categories and you will want to select categories that most closely relate to your business.
Some examples are…
Keeping on top of your quantities is the essence of inventory management. Factors you might also want to track are quantities allocated (on orders) and quantities incoming and the effects they have on your current inventory. This will yield on hand vs available quantities. Prevent over fulfillment and give your channels an accurate count of inventory.
From an inventory standpoint, sales analytics such as velocity, accounts, and sales per month can be invaluable in setting re-order points. Creating timely purchase orders and optimizing your inventory levels are essential.
This is the elusive crystal ball of future product movement. Seeing what products have moved in the past is not necessarily an accurate predictor of what will sell in the future. Forecasting analytics are complex tools for projecting inventory levels and knowing what to re-stock and what products to retire. These analytics involve time based projections based on models of performance and data mining.
Investing in comprehensive warehouse management and accounting software that has analytic tools can benefit your inventory and optimize your product movement.
Contact the Scout team to learn more. We have integrations to accounting and third party software solutions.