How Business Intelligence Tools can help in having a smoother Inventory management for Retailers.

How Business Intelligence Tools can help in having a smoother Inventory management for Retailers.

Most of the firms, whether IT or non-IT, have this realization that an effective use of the data and its management have become important for the business growth. Now to maintain this data, these firms had to set up proper IT systems in their various business locations, collect all the necessary information and then submit it to a centralized location. The above sentence sounds all okay until we see the kind of format that the people sitting in these locations use. To manage this assorted data in multiple formats, companies introduce additional business management tools which aren’t 100% accurate and reliable and invest half of their time unproductively.

Organization, where Inventory management plays a critical role, should integrate systems which can simplify such complex process. This is where introducing the right Business Intelligence tools comes into the picture. It surely helps in managing the huge chunk of Inventory based data effectively.

What exactly does Effective Inventory Management mean?

Well, in simple words, it is just about having the right quantity of given product at the precise location delivered just at the required time to maintain the customer satisfaction level at an average cost.

In this blog, we will see how Business Intelligence Tools can help in having a deliberately smoother Inventory Management:

  1. For the starters, Business Intelligence conducts a comprehensive analysis of past and current sales transactions, systematically understands the demand and associate their stock positions to their short and long term trends (defined from the analysis) respectively.
  2. It helps in tracking the inventory accurately, right from the first step of the supply chain i.e., the order from various distribution channels till the end i.e., the sales floor where it actually sells.
  3. The reports extracted from the BI tools develop and relate to the actual facts seen on the analytical models which show how the customer reacts to various moves and what activity makes an impact on sales.

How do BI tools untangle Inventory Management?

The analytical characteristics of the BI tools also help to demystify the assorted data from multiple channels by transforming it into a single, meaningful format. This helps the managers to create multiple strategies which are linked to the single dashboard which can help them to make assumptions to support perfect decision making to reach the target sales. Apart from this, the tools delivered by companies offering business intelligence services also helps the retailers in the following ways:

  • Examine huge chunks of historical data systematically.
  • Identify purchasing patterns for groups of products in varied geography, demography, time of the year etc.
  • Compiles and extract the assorted data into a meaningful format.
  • Facilitates pre-season analysis to determine purchase quantities by size, store, new items vs past items to analyze what works best for the business in the current period.
  • Categorize the financial costs product wise and syndicate these stats with its sales to get a realistic overview of that product’s profitability.
  • It also facilitates the business managers with the demand-supply analysis for deciding the next plan of actions.

To conclude, implementing the Business intelligence tools enables the retailers to utilize metrics to enhance their visibility into inventory management without affecting the daily schedule. By using the information extracted by the BI tools, the retailers can simultaneously report on the factors that are associated with the overall supply chain, sales, and other operation to make accurate and statistics-based business decisions.

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