Optimizar el Stock en Looker Studio

Efficient inventory management is crucial for any retail business, especially when dealing with perishable products. In Freshmark's case, identifying not only when to replenish products, but also when they are sitting in the warehouse too long, can mean the difference between success and significant losses. Let's look at how to use sales data to create inventory turnover metrics that help optimize stock management.

How to identify slow-moving products in inventory?

To address the problem of products spending too much time in the warehouse, we need to create metrics that allow us to identify when a product is slow-moving. This analysis is critical, as products that expire or spoil represent direct losses to the business.

In our case, three columns have been added to the dataset showing the average daily sales of each product for each of the branches. In order to visualize and work with these new columns in Looker, we need to update our data source.

How to update the data source in Looker?

To incorporate the new average sales columns, we follow these steps:

1. Go to the "Resources" section.
2. Select "Manage added data sources".
3. Edit the source "Freshmark Inventory".
4. Update the available fields.

Once this process is complete, Looker will recognize three new fields:

• Branch sales one
• Branch sales two
• Branch sales three

Importantly, this update does not affect the visualizations we already had created, allowing us to maintain continuity in our analysis while incorporating new dimensions.

How to create an effective inventory turns visualization?

To analyze product rotation, we will create a new page with a table that displays:

1. The product name
2. The average sales in each branch

This visualization will allow us to better understand the real situation of our stock. By expanding the table to occupy the entire workspace, we can clearly see all the products and their average sales in each branch.

If we also add the current stock column, we can compare directly:

Product: Plain YogurtAverage sales (branch 1): 26 units/dayCurrent stock: 111 units.

This tells us that we have approximately 5 days of yogurt in stock (111 ÷ 26 ≈ 5).

How to automate the calculation of days of stock?

Although the above information is already useful, mentally performing the calculation for each product is inefficient. The solution is to create a calculated field that provides us with this information automatically.

To create this calculated field:

1. Name it "Days S1" (days in stock for branch 1).
2. Set the formula: Stock ÷ Average sales branch 1
3. Save and apply

Calculated field: Days S1 = Stock ÷ Average sales branch 1

Once this field is created, we can remove the individual columns for sales and stock, and directly display the days of inventory on hand for each product.

This same process can be replicated for the other branches, creating similar calculated fields for each branch.

Why is it important to consider the nature of the product?

A fundamental aspect to consider is that not all product categories can remain the same amount of days in the warehouse. For example:

• Bakery products: 2-3 days maximum.
• Cleaning products: can be stored for months

This natural difference in product shelf life must be reflected in our low turnover thresholds. We cannot apply the same criteria to all products.

In future analyses, it will be important to implement a parameter that allows the manager to define what is the appropriate slow-moving threshold for each type of product, thus customizing inventory management according to the specific characteristics of each category.

The creation of inventory turnover metrics is only the first step in optimizing stock management. With these tools, we can identify products that are sitting too long in the warehouse and make informed decisions to reduce shrinkage and improve operational efficiency. What other metrics do you consider important for inventory management in your business? Share your experiences in the comments.