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IA

MODULE IA

Inventory Analysis

Inventory Analyzer (IA)

Reveals inventory dwell time, turnover, and placement efficiency.

Inventory Trend (Qty, In/Out)
Inventory Trend (Qty, In/Out)Daily stock quantity as bars and inbound and outbound quantities as lines on one timeline show how stock changes together with inbound and outbound movement.

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01About

Overview

Conceptual view of inventory volume, dwell and turnover analysis supporting inventory placement decisions
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IA analyzes the state of in-warehouse inventory from multiple angles (inventory volume, outbound ABC, dwell, and turnover analysis) to support decisions on optimizing inventory placement. Its goal is to make inventory analysis, once tallied by hand in Excel, real-time and visual.

Challenges IA Solves

  1. Inefficient inventory placement

    Frequently shipped items sit in distant locations, making picking paths long. With no basis for revising placement, the inefficiency is left as is.

  2. Neglected slow-moving stock

    Items that have not shipped for a long time occupy the golden zone (the easiest shelf positions to pick from). High-turnover items that belong there are pushed to distant locations.

  3. Poor visibility of inventory turnover

    Turnover by item is unknown, so decisions on replenishment timing and placement changes come late. The risk of excess stock and stockouts rises.

  4. Manual ABC analysis

    Tallying in Excel takes hours to days, so nothing is real-time. Analysis happens only about once a month, and responses to change are slow.

02Workflow

Operational Flow

  1. 1

    Data comes in

    Stock quantities and in/out, ship frequencyStock, in/out, and shipping frequency

  2. 2

    Seen on screen

    Daily stock and inbound / outbound movementDaily stock and in/out movement

  3. 3

    Spot issues

    Distant A items and slow-moving stockDistant A items and slow-moving stock

  4. 4

    Take action

    Revise placement together with SORevise placement together with SO

  5. 5

    Results change

    Shorter travel paths, better use of storageShorter travel paths, better use of storage

Inspect the original interfaceSeen on screen

Inventory analysis with IA consists of four steps.

  1. Step 1

    Inventory Overview

    • See the big picture in the inventory treemap
  2. Step 2

    Outbound ABC Analysis

    • ABC classification by shipping frequency
  3. Step 3

    Dwell Analysis

    • Check dwell days by item
  4. Step 4

    Placement Optimization

    • Propose location reassignments

First grasp the overall picture of inventory, then classify items by shipping frequency with ABC analysis, identify improvement targets with dwell analysis, and finally optimize placement together with SO.

IA analysis is not a one-off; repeating it regularly maximizes its effect. Because ABC ranks change with seasons and product changeovers, we recommend updating the analysis monthly to quarterly and revising placement with SO.

03Features

Key Features

  • Inventory Trend (Qty, In/Out)
    Inventory Trend (Qty, In/Out)

    Inventory Volume Analysis

    Inventory volume analysis is the first step of inventory analysis with IA. It shows visually how much stock sits in each category in the warehouse, and checks inventory imbalances and trends.

  • Outbound ABC Pareto in Outbound ABC Analysis: bars of SKUs in order of outbound frequency and a line of cumulative share (demo screen)
    Outbound ABC Pareto

    Outbound ABC Analysis

    Outbound ABC analysis is IA's core feature. It ranks items as A (high frequency), B (medium frequency), or C (low frequency) by shipping frequency, and evaluates from multiple angles whether the current location assignments suit shipping efficiency.

  • Slow-Moving Stock Heat Map in Slow-Moving Item Analysis: cells of the warehouse map colored from blue to red by days in storage (demo screen)
    Slow-Moving Stock Heat Map

    Slow-Moving Item Analysis

    Slow-moving item analysis identifies “dormant stock” that has not shipped for a long time, and promotes better use of storage space.

  • Inventory Turnover

    Inventory turnover is a metric showing how many times inventory is replaced within a given period. Higher turnover means more efficient inventory; lower turnover means stock is sitting idle.

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ABC Analysis Basics

Typically, A items (the top 20% of items) account for about 80% of total shipping volume (the Pareto principle). Placing A items in the “golden zone” near the shipping dock greatly shortens picking paths. IA automates this analysis in real time.

FIRST STEP

See where you stand with a free GPIM assessment

We clarify which level your logistics facility is at now and what to do next.