Real-Time Inventory Management & Tracking System

Using BI Analytics for Logistics & Supply Chain Industry

Our client is a prominent player in the warehouse and services sector, offering diverse supply chain solutions. Their existing inventory management system is a dynamic web-based solution, catered to diverse user roles across departments. Rishabh Software was engaged to develop a robust real-time inventory tracking system for logistics & SCM through their existing inventory platform. The goal was to empower staff to efficiently manage day-to-day inventory in real-time using a mobile-based solution.

Capability

Data Analytics

Industry

Logistics & SCM

Country

USA

Key Features

The developed BI analytics solution accurately captured all the records generated between the client and customers, visualizing essential Key Performance Indicators (KPIs) for inventory details. Through agile execution and incremental delivery, we designed a scalable, flexible, and open architecture pattern, supporting the client’s current needs while allowing for future enhancements. The key features and components of this inventory management system included:

Visualizations

Focusing on crucial KPIs for inventory details, the system projects business growth analysis at both yearly and monthly levels. This visual representation enhances data interpretation, enabling stakeholders to extract actionable insights swiftly.

Permissions

Row Level Security (RLS) restricts access to dashboard reports. Shipping Clients and Inventory Clients are granted specific access rights to ensure data confidentiality.

Real-time Dashboards

The system’s dashboard design incorporates both inbound and outbound inventory dashboards, providing a comprehensive view of operations with granular level visibility. It allows the selection and creation of KPIs tailored to specific client needs, ensuring flexibility and customization for an enriched user experience.

Key Performance Indicators

Leveraging sales-related data, the system measures inventory value effectively. It goes beyond mere measurement, defining precise measures, objectives, and definitions for KPIs. This clarity in KPI details contributes to strategic alignment and goal-oriented decision-making across departments.

Challenges

Product managers faced difficulties in gauging product turnover rates and a pressing need for improved production planning and key performance metrics

Tracking and managing day-to-day inventory levels in real-time

Integrating API-first and mobility-based business intelligence in logistics industry

Limited business user access to crucial inventory data across departments

Manual report generation lacked consistency around recording and accuracy in calculations

Solutions

One of the key challenges faced by the client was visualizing and measuring essential KPIs related to the inventory management system in logistics. Well-defined essential KPIs could contribute to strategic alignment by ensuring that all departments worked toward the same objectives. Our team defined the KPIs, making it easy to measure progress towards defined goals and assess the effectiveness of strategies. It was through the effective tracking and analysis of these KPIs that the client achieved functional objectives and established a successful inventory management framework that aligned with their business goals. The implementation of data visualization, comprehensive KPIs, and robust data modeling resulted in a transformative BI solution that enabled the client to optimize inventory management operations across the board.

Inventory turnover rate

Reflects inventory management efficiency, indicating how quickly inventory is sold and replaced.

Average inventory

Tracks stock levels during the specified timeframe to aid strategic decision-making.

Sales revenue

Measures total revenue from sales within the defined period to provide accurate insights into financial performance.

Gross margin by product

Analyzes profitability of products or categories to guide product management decisions.

Gross margin return on investment

Assesses ROI concerning gross margin to provide insights into overall profitability.

Gross margin percent

Evaluates financial health and profitability of the business based on gross margin percentage.

Revenue per unit

Measures average revenue generated per unit sold to drive profitable pricing strategies.

Cost per unit

Tracks average cost per unit sold to support cost management and pricing decisions.

Stock to sales ratio

Tracks inventory levels and sales performance to generate actionable insights into stock management and demand forecasting.

The impact of leveraging analytics and BI in logistics management translated into improved operational efficiency, optimized pricing strategies, informed inventory replenishment, and an overall enhancement in the client’s financial performance.