We have known this for a long time but it has taken years for management to realize the key to it. Recently I encountered a business user who have issues with their inventory. They are always low on stock and unable to fulfil customer requirements. Because of this they lost some key contracts. Their customers have poor experience dealing with them. Upon further discussions it was discovered they were not using data to uncover what should be their stock holdings to service their customer at an optimal level.
By simply understanding average demand of their inventory and creating a trend analysis, they were able to update all their minimum stock holding level records. This will ensure they will be able to meet customer demand for high volume items and reduce holding costs by not keeping items that churn slowly.
The data collected and analysed does help the business to improve their processes and give their customer an excellent experience when dealing with them. Ultimately, this will hit the bottom line in the long run. So dive deep into your data – make more sense of it. Use the data to help you make key decisions and improve your customer’s experience with you.