How a Single DAX Measure Saved Our Client $2.3M in Inventory Costs

Author(s): Gulab Chand Tejwani

Originally published on Towards AI.

The hidden cost of “almost accurate” data — and the Power BI solution that changed everything

It was 11 PM on a Tuesday when my phone rang. The VP of Operations at a major retail distributor was calling — her voice tight with frustration. “Gulab, we just found out we’ve been sitting on $1.8 million worth of slow-moving inventory while simultaneously paying premium freight costs for emergency stock-outs. Our current reports say everything is fine. What’s going on?”

The article discusses the challenges faced by a retail distributor, MegaDistribute, regarding their inventory management and reporting processes. Despite investing in a strong data infrastructure, they struggled with outdated data that misled their purchasing decisions, leading to significant financial impacts. The author details his consulting experience, where he identified the need for real-time insights and a more straightforward metric, the Inventory Health Score, which helped the team make informed decisions, prevent stockouts, and optimize their inventory costs, ultimately saving the company millions and transforming their operational approach.

Read the full blog for free on Medium.

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Published via Towards AI