Etini
Valued Contributor
Inventory management has to do with the quantity and amount of productive stock ideal for a business to hold per time. There are two extremes to this. Hold too little inventory, you have a shortfall that can't meet up with the demands of customers. Hold too much inventory per time, and you incur costs of warehousing for nothing and may experience possible wastage. How does a business then know the optimal amount of inventory it should hold per time?
Data and analytics offer businesses the option of making informed decisions on the levels of inventory that are they can hold per time. What data and analytics does is that it studies demand patterns based on historical data to predict to a minimal error percentage the Ideal amount of inventory to hold at a particular point of the business cycle.
Imagine having to stock 30 pieces of products following analytics results and being able to sell 27. Your money of not tied in unsold inventory and you reduce cost of warehousing while reducing the risks of wastage.
Data analytics approach to inventory management is smart approach to inventory management.
Data and analytics offer businesses the option of making informed decisions on the levels of inventory that are they can hold per time. What data and analytics does is that it studies demand patterns based on historical data to predict to a minimal error percentage the Ideal amount of inventory to hold at a particular point of the business cycle.
Imagine having to stock 30 pieces of products following analytics results and being able to sell 27. Your money of not tied in unsold inventory and you reduce cost of warehousing while reducing the risks of wastage.
Data analytics approach to inventory management is smart approach to inventory management.