Now that you’re familiar with the data available in Flywheel, let’s review how you can apply this information along with your existing business knowledge to gain actionable insights that can be applied to your business.
You have a few tools at your disposal to analyze your data, custom filters, column sorting, date range picker, and export functionality.
Using Custom Filters:
Apply one or more custom filters on the metrics table to narrow down the dataset your viewing to identify areas of your business that may require attention.
After you've narrowed your dataset, further refine the data by sorting the columns.
Continue your analysis outside of Flywheel using the Export functionality. All data within the table and applied filters will be downloaded to a CSV file.
Use the data export to compare the performance of your KPIs period over period.
Tracking your KPIs:
The inventory KPIs you choose to track will depend on your business, here are a few suggestions.
Product Performance: Knowing your top and lowest performing products will improve inventory efficiency, follow the 80/20 rule. Sort by sales and total units sold to track products with the highest and lowest revenue.
Sell-Through Rate: Identify which products are moving quickly and which are moving slowly will help you make decisions on future purchases. For instance, if you learn an item usually sells out every 3 months, you can plan how often to reorder the SKU.
ROI: Knowing how quickly a product moves and how much return you're getting from a product helps you make decisions about which products are worth investing in and how much you should spend on them.
Tips for analyzing your data:
Discover products that are hurting your profitability:
Add a filter for 'Adj Gross Margins' is less than '20%' to identify products with low or negative margins. Add an additional filter of 'Inventory Status' as 'excess', now you have a list of SKUs that are in need of attention.
Look at your advertising strategy, does your listing need improvements or do you need to be more competitive with the price? If performance has been in a steady decline it may be time to liquidate the item.
Discover products at risk of stocking out:
FIlter 'inventory status' to identity all SKUs that are in low stock and healthy stock, compare the projected weeks of supply to the lead replenishment time for each product so you can create your replenishment plan. For example, if your average lead time is 2 weeks, it is time to reorder SKUs that have 3 weeks of supply remaining.
Tip: Consider the sell-through rate for these products, if high sales volume products are running consistently selling at a high rate you may be understocking inventory based on demand.
Prioritize out of stock SKUs based on demand:
If you're out of stock or close to running out, you may want to prioritize the products for reorder to avoid tying up too much capital. Filter inventory status by out of stock and low stock, then sort by 3-month forecast to see which products are projected to get lots of sales.
Next: What is Demand Forecasting?