1. Analysis background introduction
This case comes from a medium-sized
electronic products manufacturing enterprise, which has been committed to
improving market competitiveness and profitability by optimizing internal
processes and resource allocation. In the past year, the company has experienced
slow sales growth and inventory backlog, which has had a negative impact on the
company's liquidity and operational efficiency. Against this background, the
number of inventory turnovers and the return on inventory are highly valued by
the management as key indicators to measure the efficiency of enterprise
inventory management. Through inventory data analysis, the leadershipI
hope to find the weak links in inventory management., optimize the
inventory level, improve operational efficiency, and make scientific business
decisions.
2. Statement of key issues
1)
The growth of sales performance slowed down, and profits declined
significantly.
2) The inventory turnover has slowed down
significantly, and the inventory turnover rate has decreased.
3) The cost of warehousing has increased,
and the phenomenon of product sales has been aggravated.
3. Analyze the plan
Select key data indicators for the above
business problems
|
Order
|
Name
of the indicator
|
Paraphrase
|
Analysis
angle
|
|
1
|
Inventory
rate of return
|
Return
on inventory = (gross profit/average inventory)×One hundred percent
|
Gross
profit is the difference between sales revenue and sales costs. The average
of the average inventory at the beginning of the period and the end of the
period. Measure the gross profit generated by each unit of inventory.
|
|
2
|
The
number of inventory turnovers
|
Number
of inventory turnovers = sales cost
/Average inventory
|
Sales
cost The cost of goods sold within a specific period of time. The average of
the average inventory at the beginning of the period and the end of the
period. Measure the number of times the inventory is sold and replenished.
|
|
3
|
Sales
growth rate
|
Sales
growth rate = (current sales - previous sales) / previous sales×One hundred percent
|
Measure
the growth of sales over a period of time.Combined with analysis, it can help
assess whether the efficiency of inventory turnover has kept pace with the
growth of sales.
|
|
4
|
Gross
profit
|
After
deducting the sales cost from the sales revenueThe difference of
|
|
|
5
|
Inventory
at the beginning of the period
|
The
inventory at the beginning of the period refers to the quantity or value of
the existing inventory of the enterprise at the beginning of an accounting
period.
|
It
is a continuation of the end-of-term inventory, that is, the inventory level
at the end of the previous accounting period.
|
|
6
|
End-of-term
inventory
|
End-of-term
inventory refers to the existing inventory quantity or value of an enterprise
at the end of an accounting period.
|
It
reflects the actual level of the enterprise's inventory at the end of the
period.
|
|
7
|
Sales
revenue
|
Order
amount × order quantity
|
Sales
revenue refers to the total income obtained by an enterprise through the sale
of goods or the provision of services over a certain period of time.
|
|
8
|
Sales
cost
|
Order
cost × order quantity
|
The
cost of goods sold within a specific period of time
|
|
9
|
Price
send
|
Price
range refers to the different intervals or levels of enterprise products
classified according to price.
|
The
price range helps enterprises understand the sales performance and market
demand in different price ranges.
|
|
Ten
|
Return
level
|
The
return level is divided into 4 levels according to the median of gross profit
and inventory rate of return.
|
High
inventory rate of return + high gross profit Inventory rate of return bottom
+ high gross profit High inventory rate of return + low gross profit
Inventory rate of return bottom + gross profit bottom
|
3.2 Power BI Visualization Scheme
Note: The page data is simulated data,
which is for reference only for analysis angles and Power BI function display,
and does not involve any actual business data.
4. Analysis and interpretation
Daily dimensional screening, monitor inventory fluctuations and sales in detail
Subdivision analysis:Subdivide the inventory rate of return and inventory turnover rate
of different price segments (switch geography, warehouse, product
classification) analysis, identify high-efficiency and inefficient products,
evaluate the return on inventory investment, pay attention to the contribution
of inventory to profits, and help optimize the inventory structure and improve
profitability.
Scatter chart combined with multi-index
analysis:Comprehensively evaluate the current
situation of the company's inventory management in combination with inventory
turnover, gross profit, sales growth rate and other indicators. It can be
evaluated whether the sales growth brought about by high inventory turnover is
at the expense of gross profit..
5. Application effect
Through detailed analysis, the company has
made the following three key business decisions:
Optimize
the inventory structure:For products with slow inventory turnover and low
inventory return rate, formulate specific inventory reduction plans, optimize
inventory structure, and improve the overall inventory rate of return.
Adjust the production strategy: adjust
the production plan according to the sales growth rate forecast and market
demand, avoid overproduction, and reduce inventory backlog.
Improve sales strategies: strengthen
marketing and promotional activities, improve the sales speed of lagging
products, and speed up inventory turnover.
By implementing these measures, the company
is expected to significantly improve the return on inventory, reduce
inventory-related costs, release occupied funds, and improve overall
operational efficiency and market competitiveness. The management will continue
to monitor the inventory rate of return and related indicators, adjust the
strategy in time, and ensure that inventory management is always at the best
level.
Application suggestions:Analysis of inventory dataIt is very important to choose the
appropriate time dimension, because it directly affects the accuracy and depth
of data analysis. It is recommended that as an analyst, you combine a variety
of time dimensions for comprehensive analysis and make flexible adjustments, so
that you can not only capture short-term changes, but also grasp long-term
trends.
Daily dimension: inventory fluctuations and
sales need to be monitored in detail. The data volume is large, and the
processing and storage requirements are high. It is suitable for retail and
e-commerce platforms with high-frequency transactions.
Weekly dimension: suitable for small and
medium-sized enterprises' inventory management with obvious cycles, such as
supermarkets and convenience stores.
Monthly dimension: convenient for financial
docking, suitable for long-term trend analysis, such as manufacturing,
wholesale and other enterprises with relatively stable inventory changes.
Quarterly dimension: suitable for business
with obvious seasonality, such as clothing, tourism, etc.
Annual dimension: used for long-term
strategic planning and annual performance evaluation, suitable for financial
annual statement docking.