Maximizing Inventory Efficiency: How to Apply Stockout & Wastage Analysis for Improved Business Performance
Stock-out analysis is a powerful tool that can help F&B businesses increase revenue and decrease wastage by identifying patterns in their inventory levels. By analysing data on when and how often items run out of stock, businesses can better predict demand and make sure they have the right products in stock at the right time.
To interpret the analysis, business owners should look for patterns in their data such as which products are most frequently out of stock, and at what times of day or week. They should also look for any correlations between out of stock items and other factors such as sales or weather.
To take action, business owners can use this information to make adjustments to their inventory levels and ordering processes. For example, they may need to order more of a popular item or adjust their ordering schedule to better align with demand patterns. They can also use the analysis to identify slow-moving items and consider reducing their stock or discontinuing them.
Overall, stock-out analysis can help F&B businesses make data-driven decisions to optimise their inventory, increase revenue and decrease wastage.
Stockout Analysis in action:
Lets take a pastry business as an example
For example, let's say a pastry business has data showing that their croissants are frequently running out of stock by noon on weekends. By analyzing this data, the business may discover that they are not making enough croissants to meet the demand on the weekends. They can take action by increasing their production of croissants on Fridays and Saturdays, or by adjusting their ordering schedule to better align with demand patterns.
Overall, by using stock-out analysis, a pastry business can make data-driven decisions to optimize their inventory, increase revenue and decrease wastage. This can be done by identifying patterns in their data and then taking action to adjust their production and ordering schedule accordingly.