Stock Keeping Unit Analysis

Power BI owns the visuals in supply chain. This document shows Power BI for supply chain: # 1 - Pick ONE problem to solve ↳ Don’t start with “I want a dashboard” ↳ Start with: “what decision should this dashboard help me make?” ↳ Examples: which SKUs will stock out next?, which POs are delayed?, where is demand changing fastest? # 2 - Clean your data in Power Query (not Excel) ↳ Import raw files: sales, inventory, supply, forecast, POs ↳ Use Power Query to: remove duplicates, fix date fields, fill missing weeks standardize SKU codes ↳ How it helps: from next month onward, just click Refresh. No more manual cleanup # 3 - Build simple relationships (your data model) ↳ Connect tables using keys like: SKU, product hierarchy, date warehouse, customer ↳ How it helps: You eliminate endless VLOOKUPs and messy joins # 4 - Create the 5 essential DAX measures ↳ Start with measures that planners actually use: - Inventory Days = Inventory / Average Daily Demand - Forecast Accuracy = 1 – ABS(Forecast – Actual) / Actual - Bias = (Forecast – Actual) / Actual - OTIF % = Delivered On Time / Total Orders - Backorder Value = SUM(Backorder Qty × Price) ↳ How it helps: KPIs update instantly as new data arrives # 5 - Add visuals that drive action ↳ Skip fancy visuals ↳ Add visuals that highlight issues: ↳ Line chart → Demand vs Forecast ↳ Table → Stockouts, excess, backorders ↳ Bar chart → Accuracy by category ↳ Card → Total excess, total stockouts ↳ Heatmap → Service issues by region ↳ How it helps: You can see problems in seconds, not minutes # 6 - Add slicers to drill down ↳ Add slicers for: SKU, category, warehouse, customer, month, planner ↳ How it helps: You move from company-level view to SKU-level insights instantly # 7 - Build alerts for exceptions & Publish ↳ Set alerts for: stockouts, low OTIF, high bias, sudden demand spikes delayed POs ↳ How it helps: The dashboard proactively shows what needs action today Any others to add? Ready to apply these tools in your real supply chain situations? ↳ Join me inside the Supply Chain Planning Circle community. https://lnkd.in/eVbY5YJF

📦 Understanding Re-Order Point (ROP) and Replenishment in Warehouse Management 📦 In supply chain and warehouse management, knowing when to reorder stock is crucial for maintaining the right balance between inventory availability and cost efficiency. One of the key concepts in inventory management is the Re-Order Point (ROP). But how do you calculate it accurately? And what are the most effective replenishment strategies? 🔹 What is the Re-Order Point (ROP)? ROP is the threshold at which stock must be replenished to prevent shortages before the next delivery arrives. In other words, it is the minimum inventory level at which a new purchase order should be placed. 🔢 Basic ROP Formula: Without Safety Stock: 📌 ROP = Lead Time (Days) × Average Daily Consumption With Safety Stock: 📌 ROP = (Lead Time × Average Daily Consumption) + Safety Stock 🛠 Example Case: A warehouse has a daily material consumption of 10 units, with a procurement lead time of 7 days. 📌 ROP = 7 × 10 = 70 So, when the stock reaches 70 units, the company should immediately reorder to avoid running out of stock while waiting for the next delivery. 🔹 Effective Replenishment Strategies Determining the ROP alone is not enough. Businesses must also adopt the right replenishment strategy to ensure a steady inventory flow without excessive overstocking. Here are three common strategies: 1️⃣ Just-In-Time (JIT) This approach ensures that stock is ordered only when it is needed. It is suitable for businesses with stable demand and reliable suppliers who can deliver quickly. ✅ Pros: Reduces storage costs and minimizes inventory obsolescence. ❌ Challenges: Highly dependent on a smooth supply chain—any disruption can cause stockouts. 2️⃣ Fixed Order Quantity With this method, orders are placed in fixed quantities whenever the stock reaches the ROP. The order quantity is often based on Minimum Order Quantity (MOQ) or Economic Order Quantity (EOQ). ✅ Pros: Helps maintain consistent stock levels. ❌ Challenges: Can lead to overstocking if demand drops unexpectedly. 3️⃣ Periodic Review System Stock levels are reviewed at fixed intervals (e.g., monthly), and orders are placed accordingly. ✅ Pros: Suitable for items with fluctuating demand. ❌ Challenges: If the review period is too long, stockouts may occur before the next replenishment cycle. 🎯 Conclusion Determining the optimal Re-Order Point (ROP) is essential to ensure stock availability without excessive inventory costs. By understanding consumption patterns, lead time, and choosing the right replenishment strategy, warehouse operations can run efficiently and seamlessly, avoiding both stockouts and overstock situations. 🔥 What ROP and replenishment strategy do you use in your warehouse? Let’s discuss in the comments! #Inventory #Warehouse #Supplychain #SCM #Logistic #Rop #Replenishment

Inventory is the silent killer of consumer brands. Too much stock? Your cash is stuck. Too little? Customers walk away. There’s no perfect forecast — you’ll either overstock or run out of something critical. Last year we had a horrid quarter with overstocking on all the slow moving and OOS on all fast moving walking into festive with very less fuel.  We have been building this first off excel sheets and now in what looks like a system (built off Replit). Here’s what worked for us at Koparo: 1. Move Beyond Gut Feel For a long time, reorder decisions were instinct-based or working off plain averages. That stopped working as we scaled. We introduced formulas: ReorderPoint=(AverageDailyDemand×LeadTime)+SafetyStockReorder Point = (Average Daily Demand × Lead Time) + Safety StockReorderPoint=(AverageDailyDemand×LeadTime)+SafetyStock This one change helped us avoid both empty shelves and excess stock. 2. Get the Order Size Right Knowing when to reorder isn’t enough. You need to know how much: To be honest this is still hard but if your unit costs don’t fall too much based on order volume then just be conservative on this with a very accurate handle on actual vendor lead times and not just average but in season time. This helped us strike a balance between ordering frequently and locking cash in inventory. 3. Safety Stock That Makes Sense Earlier, we’d just add 20% “for safety.” Now, buffers are calculated based on actual demand variability and service levels. No more guesswork. 4. Lead Times Aren’t Assumptions We learned the hard way that vendor timelines on paper don’t match reality. Our system now tracks actual lead times — which changed planning dramatically and yes also our vendors. 5. Automate the Triggers We built an in-house system (on Replit) with auto-replenishment triggers. When stock hits ROP, it suggests orders. No manual chasing, no panic buying. What’s the impact? ✔ Fewer stock-outs ✔ Lower working capital ✔ Predictable operations We’re still evolving this — and have built a simple system on Replit. It’s far from sophisticated, but it has improved our decision-making, forced us to make assumptions real, and saved at least 10 hours per week. Curious: How are you managing inventory? DIY system, off-the-shelf software, or still spreadsheets? #InventoryManagement #SupplyChain #D2C #Koparo Kshitij Ranjan Vishal Singh Saurabh Nidar Abhishek Sharma Rahul Gaur

Supply Chain Snippets (16/n) 𝗨𝗻𝗱𝗲𝗿𝘀𝘁𝗮𝗻𝗱𝗶𝗻𝗴 𝗥𝗲𝗼𝗿𝗱𝗲𝗿 𝗣𝗼𝗶𝗻𝘁 (𝗥𝗢𝗣) In inventory management, knowing 𝘄𝗵𝗲𝗻 𝘁𝗼 𝗿𝗲𝗼𝗿𝗱𝗲𝗿 is just as crucial as knowing 𝗵𝗼𝘄 𝗺𝘂𝗰𝗵 𝘁𝗼 𝗼𝗿𝗱𝗲𝗿. That’s where the 𝗥𝗲𝗼𝗿𝗱𝗲𝗿 𝗣𝗼𝗶𝗻𝘁 (𝗥𝗢𝗣) comes in. It helps businesses maintain the right stock levels, ensuring smooth operations without excessive inventory costs. The 𝗥𝗲𝗼𝗿𝗱𝗲𝗿 𝗣𝗼𝗶𝗻𝘁 (𝗥𝗢𝗣) is the inventory level at which a new purchase order should be placed to replenish stock before it runs out. It considers the lead time required for suppliers to deliver and the expected demand during that time. 𝗥𝗲𝗼𝗿𝗱𝗲𝗿 𝗣𝗼𝗶𝗻𝘁 𝗙𝗼𝗿𝗺𝘂𝗹𝗮   𝗥𝗢𝗣 = 𝗟𝗲𝗮𝗱 𝗧𝗶𝗺𝗲 𝗗𝗲𝗺𝗮𝗻𝗱 + 𝗦𝗮𝗳𝗲𝘁𝘆 𝗦𝘁𝗼𝗰𝗸 Where: • 𝗟𝗲𝗮𝗱 𝗧𝗶𝗺𝗲 𝗗𝗲𝗺𝗮𝗻𝗱 = Average daily demand × Lead time (in days) • 𝗦𝗮𝗳𝗲𝘁𝘆 𝗦𝘁𝗼𝗰𝗸 = Extra inventory to cover demand fluctuations Let’s understand this from an example: Imagine a company sells 50 units per day, and the supplier takes 10 days to deliver. The safety stock is 200 units to handle demand variability. ROP = (50 x 10) +200 = 700 Units This means a new order should be placed when inventory falls to 700 units to avoid stockouts. Why is ROP Important? > Prevents Stockouts: Ensures products are always available to meet demand. > Reduces Excess Inventory: Avoids tying up working capital in unnecessary stock. > Improves Cash Flow: Helps maintain optimal order cycles and avoid over-ordering. > Enhances Customer Satisfaction: Ensures timely fulfillment of customer orders. Factors Affecting Reorder Point 1. Demand Variability – Higher fluctuations require more safety stock. 2. Lead Time Uncertainty – Supplier delays necessitate a buffer. 3. Service Level Target – Higher service levels demand more safety stock. Reorder Point is a fundamental inventory control metric that helps businesses strike the right balance between stock availability and cost efficiency. Implementing it effectively ensures smooth supply chain operations and better financial performance. #SupplyChain #ROP #InventoryManagement #DemandPlanning #CostOptimization #Logistics #Procurement #InventoryControl #LeanSixSigma #Cost #OperationalExcellence #BusinessExcellence #ContinuousImprovement #ProcessExcellence #Lean #OperationsManagement

Up to 80% of revenue comes from just 30% of SKUs. Do you know which ones? In every store, not all products move at the same speed. Some sell daily, some occasionally, and some just freezing your capital. To avoid scaling losses, track product 𝘃𝗲𝗹𝗼𝗰𝗶𝘁𝘆 = Units Sold ÷ Days in Stock Here’s a simple framework: 1. 𝗙𝗮𝘀𝘁 𝗺𝗼𝘃𝗲𝗿𝘀 (top ~30–40% of SKUs by velocity) Best-sellers that generate most of your revenue. → Keep in stock, negotiate better terms, test bundles. 2. 𝗦𝗹𝗼𝘄 𝗺𝗼𝘃𝗲𝗿𝘀 (middle ~40–50%) Products with steady but modest demand. → Reduce inventory depth, use targeted promos. 3. 𝗗𝗲𝗮𝗱 𝘀𝘁𝗼𝗰𝗸 (bottom ~15–25%) Items with almost no sales that drain cash and space. → Bundle with best-sellers, discount aggressively, or cut. “Up to 30% of a company’s inventory may be dead stock, tying up working capital” – MRPeasy research So next time revenue is up, ask yourself: are your products moving, or just freezing your money?

A few years ago, I interviewed a seasoned supply planner from a global FMCG giant. I asked him, "How do you ensure uninterrupted service when forecasts are often wrong?" He smiled and replied, "I don’t trust forecasts blindly. I trust buffers." That stuck with me. We often talk about safety stock like it’s just another calculation - based on service levels, variability, and lead time. But what we often miss is that safety stock is not a backup plan - it’s a confidence plan. When I worked with a food company in North India, we faced wild swings in demand during festive seasons. Despite best efforts, our forecast error remained in the 25–30% range. Initially, we adjusted demand. Then we tried pushing supply. Nothing worked consistently. Until we recalibrated safety stock - not as a static percentage, but as a dynamic lever. We used historical MAPE to segment SKUs: ↳ High forecast error items had higher safety stock, but only if they were fast-movers ↳ For low runners, we capped safety stock and focused on lead time reduction This single change lifted our service levels from 87% to 95% - without inflating inventory across the board. Here’s what I learned: Safety stock isn’t about covering up forecasting failures. It’s about strategically absorbing volatility where it matters most. It’s not "extra" inventory—it’s "essential" inventory. We often praise forecast accuracy, but sometimes, it’s the silent buffers - well-planned, SKU-specific safety stocks - that save the day. Would love to hear - how do you approach safety stock? Static formula or dynamic levers?

This variance analysis hides 3 strategic insights most analysts miss. Can you find them? 🗝️: The answer isn't in the totals. It's in how Volume, Mix, and Price interact at the SKU level. Download the template. Run your analysis. Share what you find. https://lnkd.in/ez4EhCHc ↓ Why this matters: Price-Volume-Mix analysis is one of the most underused tools in the FP&A toolbox. Most analysts stop at "we beat budget" or "we missed forecast." But the real value is in the why. Volume tells you if you sold more or less. Price tells you if you captured more or less per unit. Mix tells you if customers shifted toward higher or lower margin products. When you isolate these effects, you stop reporting history. You start uncovering strategy. You see which products are carrying the business. Which ones are quietly dragging it down. And where the real opportunities are hiding. This is how you move from spreadsheet operator to strategic partner.

Understanding Re-Order Point (ROP) in Inventory Management: Efficient inventory management strikes a balance between avoiding stock outs and minimizing overstock. A key concept in achieving this balance is the Re-Order Point (ROP). The ROP tells you the precise inventory level at which you should reorder stock to maintain seamless operations ROP Formula: ROP = (Lead Time Demand) + Safety Stock 1. Lead Time Demand: This is the amount of inventory you use during the lead time (the time it takes to receive new stock after placing an order). Example: Suppose your business tentative sales 100 units of a product per day. Lead time (time to receive new stock) is 10 days. Calculation: Lead Time Demand = 100 units/day × 10 days = 1000 units 2. Safety Stock: Safety stock is extra inventory kept to cover unexpected demand or delays in delivery. Here's a simplified way to calculate it: Formula for Safety Stock: Safety Stock = (Maximum daily demand × Maximum lead time) - (Average daily demand × Average lead time) Example: Maximum daily demand is 120 units. Maximum lead time is 15 days. Average daily demand is 100 units. Average lead time is 10 days. Calculation: Safety Stock = (120 units/day × 15 days) - (100 units/day × 10 days) Safety Stock = 1800 units - 1000 units = 800 units 3. Calculating ROP: Now, using the ROP formula, we can calculate when to reorder. ROP = Lead Time Demand + Safety Stock ROP = 1000 units + 800 units = 1800 units Why is ROP Important? 1. Avoid Stock outs: By reordering when stock levels reach 1800 units, you reduce the risk of running out before new inventory arrives. 2. Optimize Inventory Levels: Calculating safety stock and lead time demand accurately helps maintain the right balance—avoiding excess inventory and ensuring efficient cash flow.

"Is that a typo?" In nearly 10 years of helping brands with shipping rates, I have never had a client ask me that question. But for the last few months, that is exactly what I’ve been hearing. When we show clients the new 2026 FedEx and UPS surcharge logic, they genuinely think we made a math error. We didn't. On January 12, shipping a heavy product could suddenly cost you ~$250 more per box. Large, bulky items are getting hit with new carrier fees, too. FedEx and UPS are updating the classification criteria for what triggers Additional Handling and Oversize/Large Package fees. Right now, you likely have products that avoid the carrier's most expensive penalties. Next month, those same products could trigger the highest tier of surcharges due to these new thresholds. The changes kick in on Jan 12 (FedEx) and Jan 26 (UPS), and they introduce two critical new thresholds: 1️⃣ The weight threshold (>110 lbs) Both carriers are creating a new threshold for their most expensive surcharge at >110 lbs. A heavy SKU can shift from the ~$45 tier (Additional Handling) to the ~$300 tier (Oversize). That is a ~$250 net increase per box. 2️⃣ The volume thresholds (>10,368 and >17,280 cubic inches) (Calculated as Length x Width x Height) Both carriers are adding new cubic volume criteria. >10,368 in³ triggers the ~$45 Additional Handling fee. >17,280 in³ triggers the ~$300 Oversize fee—regardless of weight. Large, lightweight items (like bedding or auto parts) that used to ship without surcharges may now trigger massive fees on every box. These rules are additive to existing criteria. If you sell high-volume SKUs in these categories, the variance is significant enough to impact Q1 profitability. What can you do? 1. Audit your SKUs immediately. Pull a report of everything you ship over 50 lbs or 6 cubic feet. Run them against the new thresholds (>110 lbs, >10,368 in³, and >17,280 in³). 2. Rethink your packaging. Example: Splitting a 130-lb product into two boxes (one <50 lbs, one ~80 lbs) could save you $200+ per shipment. It's counterintuitive, but the math works. 3. Model freight vs. parcel. For some products, these surcharges might tip the math entirely—where shipping LTL becomes cheaper than parcel. 4. Check with your partners. We notified our clients immediately when this was announced so they could prepare. If your current 3PL hasn't mentioned this yet, they may be focused on the standard rate increases and missed this detail. It is worth flagging it with them today. The bottom line: You have roughly 30 days. If you are concerned about this — or just now hearing about it — send me a message. At Red Stag Fulfillment, big, heavy, and bulky fulfillment is our specialty. My team will look through your SKUs, show you the potential cost impact, and help you figure out how to mitigate it. No obligation. We'd rather help you get ahead of this than watch you get a shocking invoice in February.

𝗜𝗻𝘃𝗲𝗻𝘁𝗼𝗿𝘆 𝗰𝗼𝗻𝘁𝗿𝗼𝗹 𝗶𝘀 𝗻𝗼𝘁 𝗮𝗯𝗼𝘂𝘁 𝗰𝗼𝘂𝗻𝘁𝗶𝗻𝗴 𝘀𝘁𝗼𝗰𝗸.  𝗜𝘁’𝘀 𝗮𝗯𝗼𝘂𝘁 𝗰𝗼𝗻𝘁𝗿𝗼𝗹𝗹𝗶𝗻𝗴 𝗰𝗮𝘀𝗵 𝗳𝗹𝗼𝘄, 𝗰𝘂𝘀𝘁𝗼𝗺𝗲𝗿 𝘀𝗲𝗿𝘃𝗶𝗰𝗲, 𝗮𝗻𝗱 𝗰𝗵𝗮𝗼𝘀. If you're not applying structured inventory techniques, you're inviting stockouts, overstocking, or worse—cash trapped in the wrong places. Here are 6 high-impact inventory control techniques used by top-performing supply chains: (1). ABC Analysis Categorizes items by value contribution: • A = High-value, tight control • B = Moderate-value, periodic review • C = Low-value, simple checks Focus where it financially matters most. (2). XYZ Classification Uses Coefficient of Variation (CV) to classify demand variability: • X = Stable • Y = Moderate • Z = Erratic Drives how much buffer or planning flexibility you need. (3). EOQ (Economic Order Quantity) Finds the optimal order size that minimizes total holding + ordering cost. Formula: EOQ = √(2DS/H) (4). ROP (Reorder Point) Calculates when to place the next order so you never run dry. Formula: ROP = Daily Demand × Lead Time (5). Safety Stock Holds extra inventory to cover demand or supply shocks. Formula: SS = Z × σ × √LT Z = service level, σ = demand variability (6). VED Classification Ranks inventory by criticality: • Vital – no stockout allowed • Essential – important, but manageable • Desirable – lowest priority Crucial in healthcare, aerospace, and military supply chains. 🧠 I use this exact framework when training supply chain teams or auditing stock strategies. Which technique do you use most? #InventoryManagement #SupplyChain #DemandPlanning