Inventory analytics and stock-out prevention.

A network can have enough inventory overall and still lose sales in specific stores. At the same time, another location piles up slow-moving units.

Looking only at sales is not enough either: it cannot tell a drop in demand from a lack of availability. That is why the analysis has to reach product and location level, with a known cut-off date.

• —Sales history by SKU, store and date.
• —Available and committed inventory.
• —Open orders and expected arrival dates.
• —Lead times and purchasing constraints.
• —Catalog and unit equivalences.
• —Lots and expiry dates, when the goal includes waste and only if available.

Before flagging a risk we check data quality: load cut-offs, negative inventory, inconsistent units and periods with no data.

Trace brings sell-out and inventory together to review coverage, turnover and exceptions. The analysis separates a product that isn't selling from a product that is out of stock, and helps prioritize the review of replenishment, assortment or redistribution.

If the information is spread across several systems, Essential can provide the integration. Prevention reduces exposure to risk; it does not guarantee zero stock-outs.

• —View by SKU and store, with its refresh date.
• —Indicators with documented formulas.
• —Risk classification and exception list.
• —Priorities for purchasing or redistribution review.
• —Follow-up on the outcome of the actions taken.

Signals usually measured are stock-out frequency, coverage, turnover, waste where the data exists, and service level. The baseline and targets are defined with each operation.

Using TRACE, with Trixo as commercial partner, Abbott Central America reported up to 20% fewer lost sales and 25% less waste.

Results reported by Abbott Central America using TRACE. These are results of that case, not a guarantee for another operation.

Cobeca Pulse shows how Orbit, powered by AWS, lets people explore operational data through conversation. In an inventory project, one of the questions to design could be:

Answering it requires stock, consumption and an agreed definition of coverage. The scope of an experience like this is designed in each project.