What is inventory management?
Inventory management is the operation of efficiently overlooking the constant flow of units into and out of an existing inventory. The operation includes controlling the transfer in of units in order to prevent the inventory from becoming too high or dwindling to levels that could put the processes of the company into danger.
The balancing of the different tasks of inventory management has three key aspects:
- Time – understanding how long it takes for a supplier to process an order and execute the delivery
- Calculating the buffer stock which is additional units above the minimum number required to maintain production levels
- Keeping spot-on records of finished goods that are ready for shipment.
Inventory management also allows the preparing of accurate reports that can be used for accessing any taxes due on each inventory type. Without exact data regarding unit volumes the organization cannot accurately calculate tax amounts.
How are inventory management and business intelligence linked?
An efficient inventory management means having the right amount of the right product at the right location, delivered at the right time to produce customer satisfaction. Implementing an inventory management solution driven by business intelligence can help retailers improve their in 5 key areas:
- Supply chain
Business intelligence will help you analyze data from across the supply chain and internal processes to better the efficacy of inventory throughout the organization which will:
- Help in conducting in-depth analysis of historical sales transaction and better anticipate demand
- Accurately track inventory throughout the entire supply chain from order through the distribution centers to stores and to the sales floor
- Help in developing fact-based analytical models of customer behavior to understand the factors that influence sales
Business intelligence analytics will also help improve inventory levels through various reports provided by BI, manufacturers can better:
- Control inventory costs
- Service levels with the correct product availability
- Manage the inventory assets
- Prevent costly inventory build-up
- Keep out-of-stock situations from happening
Click here for our business objects training.
How can we help?
We can help you design and create inventory management performance reports that will improve the overall efficiency of your business.
ADDRESSES NACHTWACHTLAAN 461
1058 ER AMSTERDAM