The key benefits of business analytics
Internal operations in organizations often go through seasonal fluctuations. This happens because of constant changes in the market. Customers alter their preferences, or the company decides to completely replace old stocks. It can be quite challenging to deal with such situations. This is where the concept of business analytics comes in. Business analytics include all types of techniques and methods, used by an organization to measure performance. To ensure compliance, companies also try to customize analytics as need be. Doing so, allows firms to effectively manage all sorts of assets in their inventory. When you gather data for inventory analysis, you tend to monitor minute details which are easy to miss out on, otherwise. All this valuable information helps you achieve the following objectives:
Encourage strategic decision making: Maintaining accurate records gives businesses the accessibility to make calculated forecasts. Besides being a source of secure information, analytics also speed up management processes and refine future plans.
Stay up-to-date with the latest trends: Frequent changes in the market mean constant alternations to your responsiveness towards them. If for instance, you notice an increase in the usage of a particular asset. This means you have to order more stock next time. Real-time monitoring helps you stay ahead of such fluctuations.
Mitigating risk of fraud: Constant supervision of your assets ensures transparency of all operations. If you notice any unauthorized actions, it becomes easier to spot and stop them. Data management through the use of statistics results in improved anti-fraud and risk practices.
Read more: Managing the 5 types of inventory every business has with inventory control tool
Maintain track of consumption through inventory control software
Tools like inventory control software allow you to attain a high rate of return on your assets and much more. Here are some features you can use to generate actionable reports on inventory consumption:
1. Tag all inventory items
Inventory items are perhaps, one of the most extensively used items in a company. These include both everyday assets like mobile phones and expensive equipment. For a business constantly on the move, asset management can get a little tough. Employees tend to use office equipment on-the-go, which increases the chances of loss through misplacement. So, what can your organization do to minimize losses and monitor inventory consumption at all times?
The answer is simple. Create barcode tags for all items using inventory control software. Doing this lets you supervise and control how your resources are being allocated. When your assets have a label attached to them, it becomes easier to record their status. You can reduce the risk of misplacement by enabling check-ins and checkouts. This practice paves way for a comprehensive database about which inventory items are in use and how frequently they are being utilized. Information such as this comes in handy while creating the end of year consumption reports.
2. Manage purchase and vendor records
One of the main metrics of inventory consumption is stock management. The simplest way to compute asset stock analytics through inventory control software is to examine purchases and vendor services. Barcodes enable you to efficiently enter all relevant details related to inventory in your system. This way, whenever you are about to finish stock, new purchase orders are automatically created. Every asset in your inventory has its own particular vendor details. Wide-ranging data about your inventory allows you to create accurate statistics about utilization and manage costs [Source].
Read more: How to tackle low inventory stock problem with inventory control system
3. Track inventory usage history
Keeping a track of your previous consumption patterns is vital for an effective inventory management routine. Not all assets remain the same over time. Organizations are likely to face fluctuations in demands and as a response tend to change their stock bundles. Say for instance, in the previous year there was a fall in the usage of paper-based files. These were replaced by electronic devices due to change in employee preferences. This transition would’ve only been documented if you had history tracking of inventory enabled for your business. Inventory control software lets you do exactly this for successful management processes. By tracking usage history you are able to oversee how inventory evolves over time. It becomes easier to pinpoint an increase or decrease in consumption. Having access to quality historical analytics empowers you to make practical strategic business plans. When you have the ability to precisely forecast future trends in inventory usage, you are more likely to improve workplace productivity as well.
4. Track depreciation of all items
As a small or medium business, your inventory is likely to comprise of multiple assets with varying lifespans. Every tool and machine comes with a limited useful life, after which it needs to be disposed of. This is why inventory control software often comes with depreciation tracking. In order to fully utilize your equipment, it is necessary that it is well-maintained. Recording depreciation rates give you a good estimate of consumption patterns as well. It is fairly obvious how this works.
With the help of the software, you can run inventory devaluation reports for all your assets. Doing this, sketches out how much longer a specific inventory item is likely to last. By using these statistics, you can also generate yearly depreciation analysis to manage inventory stock as well. When you consistently keep a track of equipment markdowns, it allows you to optimize assets for streamlined work operations.
Share queries on inventory control software
EZOfficeInventory is an efficient inventory tracking software, popular among various companies and small businesses all around the world. It allows them to practice streamlined inventory management to increase workplace productivity.
For more assistance, drop us an email at support@ez.io.
