Profitability analysis at the product or customer level.
Inventory performance analysis.
Linear & non-linear forecasting.
Seasonal & time series forecasting.
Speaking engagements.
Book Announcement
Numerical Insights is currently writing a book to guide business owners on the value of data analysis within their organization. Below is a snippet for who should read the book.
If you would like to be notified when the book is published, enter your email address below.
"The reader of this book need not be a mathematician. This book is intended for the business-minded individual interested in learning about the strategic advantage which can be obtained from business analytics. Perhaps you would like to reduce your inventory, predict upcoming retirements, determine product and customer profitability or gain insight into customer ordering behaviour.
This book will present some of the simpler approaches to data analysis and will show the value of these analyses to the business. The intent is to show the reader what is possible rather than teaching the mathematical techniques.
The book will present a series of real-world case studies from various functional areas. It will debate the advantages and disadvantages of trying to build these capabilities in-house and will provide a realistic view of the challenges associated with analytics in the corporate world.
ARE YOU STOCKING THE RIGHT INVENTORY?
I was approached by a company who has inventory challenges. The demand for their products is slowly on the rise, but they find they are continually running out of component parts in the inventory. These inventory component parts are used to assemble their products. The bottom line is: the orders are coming in but the product is not going out the door at the same pace. Orders are being delayed for lack of component parts in their inventory.
The first challenge in a study of this nature is to determine what data is needed. The company has inventory stocking data and this is an inventory study, so inventory data is what we need, right? Not quite. Studying the inventory data at this point would show us what we already know. The company runs out of parts and doesn't know why. Instead, we'll look at the customer demand data to try to understand customer order behaviour.
A high level query of the data reveals that the customer offers just over 7,000 products. A further query revealed that over a 2 year period (the time-frame of the exported data), 34% of these products were only ordered once! Think of the amount of support and inventory involved to stock these products for the odd chance that someone will order one of these products sometime in the next 2 years. It was recommended to the company to look into having the suppliers of these components stock the parts on consignment. It was further recommended that the company look into these products and see of any of their other existing products could cover the application, thus allowing for elimination of product numbers.
For the remaining 66% of the products that are ordered more often, a study over the 2-year time-frame was conducted to show the minimum and maximum monthly order levels. This provides the company with an idea of which products are ordered on a steady basis (in which case recommended inventory levels are fairly steady) and which ones swing up and down substantially in demand.
The final analysis conducted was to include confidence intervals at a 90% level for monthly demand. This provides a guideline on stocking inventory levels as it determines the inventory level for which 90% of the historical demand levels for each part fall within that inventory level or below. The company will now evaluate how this will impact their current inventory levels to see if a 90% level is acceptable.
Company Information
Location: Germantown, Collierville, Memphis, TN.
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What Other People Say...
“Tracey is a skillful and motivated person. She is an extremely capable team leader equipped to manage projects from cradle to grave. Her communication skills reach all levels of management producing inclusive participation and representation throughout the project. Tracy's insight allows her to see potential area's for improvement and implement new strategies. I would highly recommend Tracey and regard her as a powerful player in the race for bottom line results.”
Rebecca Bauer , Director of Category Management CPFR, VMI, Motorcar Parts of America
Tracey is extremely bright, analytical and adept at coaching a Team of associates from varying functional backgrounds in a Project environment. Her soft skills are excellent and people interactions have always been positive. Tracey was a co-presenter at a BP sponsored Supply Chain Regional Engagement Session conducted at our Corporate Office in New Jersey in 2006 and was received very well by the International Team of BP associates that were in attendance. Tracey thinks strategically with a Business perspective and is excellent at leading teams towards business goals and objectives.
Dan Cadigan , Sr. Strategic Project Leader, BP
Not only did she always work hard and display a good attitude, she also clearly had valuable experience in the world of continuous improvement. I heartily endorse Tracey for jobs in process improvement and reengineering, Lean, Six Sigma, streamlining, and efficiency and quality improvement.”
Tyson Browning , Assistant Prof. of Enterprise Operations, Texas Christian University
“Tracey is a detail-oriented manager who is extremely focused and has the ability to analyze and deliver well executed projects.”
Laura Vanderluit , Marketing Director, Automation Integrators
