If you’re an organization that sells a range of products across different warehouses, you obviously must manage your inventory extremely effectively. Inventory management is not only about managing the cash held in your inventory, but also making sure that you are stocked well enough for the trends and sales in your retail outlets and/or salespeople.
This post is a comprehensive guide to inventory management using Power BI. Here, I share with you different techniques you can use in Power BI to give you a detailed analysis with lots of valuable insights for an optimum inventory management.
The first video is all about managing your inventory and finding insights in an almost real-time basis. This inventory management solution in Power BI enables you to monitor inventory levels in warehouses versus trends for revenue across sales channels, review short-term cash requirements for upcoming stock re-order programs, and analyze key vendors, and look for procurement discounting opportunities. Moreover, you can review real time stock-take analysis and evaluate value of inventory sitting on warehouse floors.
Once you have all that information, you might want to dive into how you can compare inventory values to historical sales and get more specific insights. This is important for your business, as you want to make sure you are optimizing your inventory levels and cash through time.
This next video shows you how to achieve that by utilizing the DAX formulas in Power BI. In this video tutorial, I make a comparison between historical sales and the current stocks. That’s exactly how you should manage your inventory.
By understanding this, you can be assured that you keep up with the trends and demands or have sufficient supply to enable any sales events or promotional activities you’re initiating in your business.
In the video, I demonstrate how to build the data model properly, how to apply the right DAX calculations, and how to showcase this in a visual way that highlights the insight very well.
This is significant information for your business, right? Now, what if you had zero stock on certain days?
This question came up at the Enterprise DNA Support Forum, where a member needed to work out the number of days the inventory stock levels were at 0. This is a really unique inventory management analysis. The technique required to work this out was unique as well because of the data set up that the member had. Some different DAX formula techniques were used to solve it.
This is really interesting because it’s a real-world analysis that perhaps you can also relate to. Check out the video tutorial I did for this specific topic.
It’s quite a helpful tutorial for retail managers and business owners indeed. However, a great analysis is nothing without an equally great visualization. You want to create captivating reports to really showcase your insights clearly and efficiently.
Fortunately, I have a video tutorial on how you can make your Power BI models, specifically with inventory management data, which is very compelling and extremely insightful.
In this example, we're managing our stock levels based on sales. You can see how I made this dashboard simple, but efficient. I made sure that the visuals could showcase any key metric that we might want to look into on a summary level.
The key to inventory management analysis is to really have a good understanding of the data model and make use of relevant DAX calculations. It's also essential to create high-quality and appealing visualizations. The application of these techniques within different areas of Power BI is what you ultimately need to get amazing insights. This is the real power in using Power BI as an analytical tool.