Analytics for business improvement
A 2013 Bain report found that companies using analytical techniques are actually:
Twice as likely to be in the top quartile of financial performance, and
Five times as likely to make decisions faster than their peers.
These analytical techniques aren’t complicated ones, but rather a systematic study of existing operational and financial data. These are studies that businesses rarely have time to execute themselves, but when they are conducted, either in-house or with external help, the improvement to the business can be substantial.
Analytical projects can help identify savings opportunities or opportunities to increase profitability. In a world where the intelligent use of data is a competitive advantage, those that aren’t equipped to analyze their data should establish a path to do so.
With over 25 years in data analysis, Numerical Insights has helped businesses evaluate their financial and operational data. These analyses are then used to make business decisions that:
Increase profitability, and
Improve internal processes such as inventory and order management.
Our president has worked in engineering, supply chain and on the analytical side of HR. Having experience in these areas provides Ms. Smith with the ability to envision how to use data to improve an owner’s business in multiple ways. Ms. Smith helps businesses:
Understand where the money went when the business is struggling to turn a profit,
Know which products are contributing to the bottom line and which ones yield losses,
Identify the impact of current inventory management practices, and
Better manage cash flow through the understanding of how decisions impact cash.
A distributor of finished goods in Chicago, Illinois was struggling to keep his business profitable. Despite substantial increases in sales over the past five years, at the end of each month, it was difficult for this owner to have enough cash to pay for his inventory.
Using the planning process presented in this document and with the data analysis services of Numerical Insights LLC, this business owner now understands where the cash went and has planned actions to improve the business’ cash flow situation. In the owner’s own words,
Even that brief glimpse into what can be done with the data was enough to make me think that what's inside the black box can actually be decoded, and, gasp, understood?
As a next step, Numerical Insights LLC is using data analysis to investigate the product drivers of profitability to assist the owner in modifying his product offering strategy.
Whether its analyzing customer demand patterns, factory production, inventory or internal processes, Numerical Insights can help identify areas of improvement by providing visibility into your business data using the latest business intelligence tools.
The possible application of analytics to any business is vast. Here are just a few project examples.
Determine which products or customers contribute the most to your profit,
Assess which zip codes have yielded the greatest customer base,
Conduct a spend analysis for purchasing department cost savings and supply base consolidation, and
Historical product demand patterns and variation analysis (volatility of ordering).
Product rationalization is the effort to reduce the number of products being offered by a company which can, in turn, reduce inventory quantities and the supply base. Products are analyzed by profit contribution, life cycle and customer priority.
Customer rationalization is the effort to reduce the number of customers or alter the service levels of customers generally to reduce negative profits. Customers are analyzed by profit contribution, historical revenue patterns and resource usage.
We can help you use data to answer key business questions. To start a conversation, click here for our Contact Us page or simply call us.