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An end to end Power BI tracking System designed to bridge the gap between procurement lead times and sales velocity. This analysis identified critical “stockout” risks for high-revenue items while flagging supplier inefficiencies that negatively impacts revenue.

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Current Problems

The "Stockout" Crisis vs. "A-Rank" Revenue

Any item classified as A-Rank that also triggers a Reorder Now status represents a critical revenue setback. Because Rank A items drive the vast majority of total revenue, maintaining stock levels is non-negotiable. A stockout in this category is significantly more costly than a stockout for a Rank C item.

Inefficient Procurement & Supplier Misalignment

There are two strategic issues within our current procurement model that require immediate correction:

• Priority Stock Bottlenecks: A significant portion of our Class A inventory (13 out of 49 items) suffers from high sales volume paired with excessively long lead times. Seven of these products require immediate reordering to avoid a total stockout.

• Low Velocity Capital Tied Up: We are currently holding inventory for slow-movers that have low sales volume but high lead times. Forcing the warehouse to hold stock that takes 30 days to arrive just to sell a few units is an inefficient use of capital and space.

Solutions

Mitigating the "Stockout" Crisis for A-Rank Revenue

To protect our primary revenue drivers, we must prioritize fulfillment for any Rank A item with a "Reorder Now" status.

• Immediate Action: Expedite shipping or initiate direct supplier communication to bypass standard queues for the 10 skincare SKUs currently flagged for reorder.
• Risk Assessment: Eight of these items are high-performing priority stock. Failing to secure them immediately represents a significant threat to total revenue.
• Proposed Buffer: Implement a dynamic Safety Stock calculation for these top 10 SKUs to account for shipping volatility.

Inefficient Procurement & Supplier Misalignment

1. Optimizing Priority Stock: Our priority stock consists of high-velocity items hampered by extended lead times, representing approximately 27% (13/49) of our Class A inventory.
   • Supplier Partnerships:​​​ We will negotiate with current vendors to establish fast-track fulfillment protocols for these items. If lead times remain static, we will begin a competitive bidding process to source a more agile supplier.
   • Inventory Logic:​​ To prevent reoccurring stockouts, we will adjust the Reorder Point and increase the standard order quantity to better align with high sales velocity and current vendor delays.​​​​
2. Strategic Audit & Stock Reduction: We are currently misallocating warehouse resources to "slow mover" products with high lead times but negligible sales volume.
   • Efficiency Audit: We must question the logic of 30-day lead times for low-demanded products that tie up capital and physical shelf space.​
   • Agile Sourcing: For these items, we will transition to local suppliers who can also provide shorter lead times. While the per-unit cost may be slightly higher, the reduction in holding costs and improved liquidity will provide a better net return.
   • SKU Rationalization: Any SKU that fails to meet a minimum sales threshold over two consecutive audit periods will be considered for total phase-out to streamline the portfolio.