digiMall VendorAnalytics & Growth Help
Data-Driven Inventory Management
Use analytics and data insights to optimize inventory levels, reduce costs, and maximize sales opportunities
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16 min read
Updated 2024-01-15
Inventory Analytics Overview
Key Inventory Metrics
Performance Indicators
- • Inventory Turnover Rate: How quickly you sell inventory
- • Stock-out Rate: Frequency of running out of stock
- • Carrying Cost: Total cost of holding inventory
- • Dead Stock Percentage: Items not sold in 90+ days
Demand Forecasting
- • Sales Velocity: Rate of sales over time
- • Seasonal Trends: Predictable demand patterns
- • Lead Time Analysis: Supplier delivery timeframes
- • Reorder Point Calculation: When to replenish stock
ABC Analysis & Product Classification
Product Categories by Performance
Category A (Top 20%)
- • High-value, fast-moving products
- • Generate 80% of revenue
- • Require frequent monitoring
- • Never allow stockouts
- • Invest in safety stock
Category B (Next 30%)
- • Moderate value and movement
- • Generate 15% of revenue
- • Weekly inventory reviews
- • Moderate safety stock
- • Balance cost and availability
Category C (Bottom 50%)
- • Low-value, slow-moving products
- • Generate 5% of revenue
- • Monthly inventory checks
- • Minimal safety stock
- • Consider discontinuing
Demand Forecasting Techniques
Forecasting Methods
Historical Data Analysis
- • Moving averages (3, 6, 12 months)
- • Seasonal decomposition analysis
- • Trend identification and projection
- • Year-over-year growth patterns
External Factor Integration
- • Economic indicators and events
- • Competitor activity and pricing
- • Marketing campaign impact
- • Supplier lead time variations
Inventory Optimization Strategies
Just-in-Time (JIT) Implementation
JIT Benefits
- • Reduced carrying costs (20-30% savings)
- • Lower storage space requirements
- • Decreased risk of obsolescence
- • Improved cash flow management
- • Enhanced supplier relationships
JIT Requirements
- • Reliable supplier network
- • Accurate demand forecasting
- • Strong supplier communication
- • Quality control systems
- • Flexible ordering processes
Automated Inventory Management
Automation Features in digiMall
Alert Systems
- • Low stock notifications
- • Overstock warnings
- • Reorder point alerts
- • Supplier delivery delays
Auto-Reordering
- • Predefined reorder quantities
- • Supplier integration
- • Economic order quantity (EOQ)
- • Safety stock maintenance
Reporting & Analytics
- • Daily inventory reports
- • Performance dashboards
- • Trend analysis charts
- • Cost optimization reports
Cost Optimization & Profitability
Inventory Cost Components
Direct Costs
- • Product purchase cost70-80%
- • Shipping and logistics5-10%
- • Import duties and taxes3-7%
Carrying Costs
- • Storage and warehousing5-8%
- • Insurance and security1-3%
- • Obsolescence and shrinkage2-5%
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