Reporting > Inventory Analysis
The Inventory Analysis board provides you with extensive data about key performance indicators (KPIs) of your warehouse. It gives you information about your total inventory value, your sell-through rate, and helps you identify potential stock-outs among other things. You can further improve your analysis by selecting a time period and comparing your KPIs to a previous period. With this data, you can tailor your inventory management to your customer's demands and thus optimize your business processes.
The board is structured in three sections:
On the top of the dashboard you can find six high-level KPIs which are all calculated as a summary over your entire inventory. Each of the KPIs is processed on the time period you have selected in the Page filters. The data for your selected main period is displayed and compared to the value of the comparison period.
The core section of the dashboard is composed of five tiles presenting insights primarily calculated on product level. Each tile consists of a graph showing the corresponding totalled KPI over time on your selected main period, and a table with the top five products contributing the highest individual value.
The third and final section consists of the Inventory Value Overview table that lets you group your stock by product, warehouse or project giving you a different perspective on your data. It allows you to browse through your inventory - similar to a pivot table.
Note
All of your data is stored historically, allowing you to observe the daily evolution of your inventory KPIs from July 2023 onwards.
You can select a period to narrow down the data you want to analyze.
To narrow down your data using filters:
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Click on Page filters on the upper right.
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Select a period for analysis. The following time frames and intervals are available:
Note
Intervals are only important for graph tiles as they define the granularity of the graph!
Time frame
Interval(s)
Year
Quarterly, Monthly
Quarter
Monthly, Weekly
Month
Weekly, Daily
Week
Daily
You can compare the results of the selected period with either the previous period or the same period of the last year.
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Click Apply changes.
The selected period is applied to your data and will be displayed after a short loading time.
Caution
Note that some KPIs will change significantly with the date filter settings you apply, because the time period over which data is accumulated is affected. This is especially true for the sell-through rate and turnover ratio high-level KPIs, as your total sales numbers will most probably grow with the selection of a longer time period.
When using these tiles for a benchmark, make sure to select a reasonable period. For example, the sell-through rate is usually considered over one month, whereas the inventory turnover is often determined on a six-months or yearly time period.
The overview tiles provide you with the most important numbers for your Warehouse KPIs at a glance. Every tile also compares the data for the end date of the current period with the end date of the comparison period you selected in the Page filters. This makes it easier for you to identify trends and adjust your processes if needed.
Further information on four of the six KPIs can be found in the graph tiles beneath. These KPIs are marked as (with graph) in the following table.
|
KPI |
Description |
Motivation |
Calculation |
|---|---|---|---|
|
Total Inventory Value (with graph) |
Sum of the inventory value of all products in stock, based on their average purchase prices |
Quick overview about how much capital of your business is bound in the form of stock |
Inventory value per product = Quantity on stock * average purchase price (based on historic purchase prices) Total inventory value = Sum of (inventory value per product) over all products |
|
Total Retail Value |
Sum of the retail value of all products in stock, based on their average selling prices |
Understand the total value of your inventory, assess the profitability of your products, and make informed decisions about pricing, promotions, and product assortment |
Retail value per product = Quantity on stock * average selling price (based on historic sales orders) Total retail value = Sum of (retail value per product) over all products |
|
Unique Products |
Number of unique products which are listed as warehouse items |
A larger product range may impact the complexity of your stock management |
Count of unique products |
|
Total Turnover Ratio (with graph) |
Rate at which inventory is cycled in a period |
An indicator of how fast inventory moves through your warehouse |
Total costs of goods sold (based on inventory value and sales quantities) / average inventory on hand |
|
Total Sell-through Rate (with graph) |
Percentage of items sold out of the initial quantity on hand |
Check if the quantities you have on stock are adapted to your sales numbers |
(Sold quantity / initial quantity on hand) * 100 % |
|
Total Excess Stock (with graph) |
Value of stock that exceeds the forecasted demand expected in the next month |
Avoid overstocking by evaluating how much of your inventory exceeds the expected demand in the next month |
Excess value per product = ((Quantity on stock) - (forecasted demand)) * (average purchase price) Total Excess = Sum of (Excess value per product) over all products |
The graph tiles give you deeper insights into your data by letting you see changes over time in the graph. Additionally the five items that contribute most to the KPI are listed beneath the graph giving you insight into what products you might want to focus on. You can also find the item's ABC classification on the left side. You can find further information in the Calculation of ABC classification section.
There are five graph tiles available. Four of the five available KPIs in this area give you more insight into KPIs that were already present in the overview tiles. You can find out what they mean and how they are calculated in the section: About the overview tiles. The new KPI in this area can be described as follows:
Important
When using the graph tiles, pay close attention to the interval you chose while selecting a period for analysis as this will heavily influence the displayed data. While the overview tiles always display the data for the current day, the displayed data in the graphs is based on intervals. This means that for a weekly interval, the data is displayed for the average value of that week.
|
KPI |
Description |
Motivation |
Calculation |
|---|---|---|---|
|
Potential Stock Out |
Potentially lost revenue within the next week if the affected products are not restocked in time We flag an item as “at risk”, if the current quantity on hand does not suffice to fulfill the 95th percentile of weekly sales quantities (based on your historic sales orders). |
Minimize your lost sales and improve customer satisfaction by ensuring the availability of high-demand products |
Potentially lost net revenue per affected product = ((Quantity on stock) - (95th percentile of weekly sales quantities)) * (average selling price) Total potentially lost revenue = Sum of (Potentially lost revenue per product at risk) |
Caution
For the calculation of inventory value in all of the above KPIs, we use the average purchase price per product from your purchase prices data. If you have not assigned a purchase price to a certain product, the inventory value as well as the turnover rate of this item will be considered zero.
ABC analysis can help you optimize the layout of your warehouse by categorizing your items into three categories based on their relevance for overall revenue. Category A items contribute 80% of your company's revenue, category B items contribute 16% and category C items contribute 4%. As category A items are the most important for your company's revenue and create the most movement in your warehouse, they should be stored in easy to access areas. Category C items on the other hand can be stored in places that are harder to reach.
Your items are classified using the following calculation:
Note
The data used for calculation is building up from the date the dashboard was enabled for your instance.
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The revenue for each of your products is calculated.
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Each product's share of the total revenue is calculated by dividing the revenue of the product by the total revenue of your sales.
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The products are then sorted in descending order by their total revenue and the percentages are added up from the top until you reach 80% of the revenue. These products are placed in Category A.
The products contributing the next 16% are classified as B and the last 4% are classified as C.
The following table shows an example of the calculation:
|
Product |
Revenue |
Share of total revenue |
Sum of Shares |
Category |
|---|---|---|---|---|
|
Product 1 |
10 |
42% |
42% |
A |
|
Product 2 |
5 |
21% |
63% |
A |
|
Product 3 |
4 |
17% |
80% |
A |
|
Product 4 |
4 |
17% |
97% |
B |
|
Product 5 |
1 |
3% |
100% |
C |
On the bottom of the page is a table that lets you filter your data by product, project, or warehouse. Both inventory value and inventory retail value are shown in the table, each calculated based on average prices as well as the most recent price. Select the dimension you want to group by on the top right corner and use the search bar on the left to find a specific entry.
You can customize this table by hiding, resizing and sorting columns in your preferred way. You can hide columns using the Columns button on the top right of the table, while resizing and sorting can be done via drag and drop.