Smart BI: analysing data and optimising purchasing decisions

In the previous posts, we first saw how Power BI can assist you in analyzing customer aging data and then how Power BI can also make a difference in the analysis of sales data.

In this post, we will focus on purchases. If you think Power BI isn't useful in this area, you may want to continue reading, and you'll likely change your mind.

Purchase reports, in fact, are a fundamental tool for examining and managing purchase transactions within a company. They provide a detailed analysis of orders and invoices from suppliers, allowing for a comprehensive evaluation of purchasing management, supplier performance, and procurement spending trends. But why should we pay so much attention to these reports?

Optimizing Purchase Decisions

A crucial point is the ability to analyze orders by item and supplier. For example, assuming that a company discovers it is purchasing a significant quantity of a particular item from a supplier, but this item is not selling well. This could suggest the need to review the purchasing strategy to avoid excess inventory or consider more cost-effective alternatives.

Assessing Supplier Performance

Purchase reports also allow you to assess supplier reliability. If you encounter frequent delivery delays or quality issues with products supplied by a particular supplier, this can have a direct impact on the supply chain and customer satisfaction. Identifying these issues promptly allows for improvements or consideration of the opportunity to change suppliers.

Monitoring Procurement Spending

An essential aspect of analyzing purchase reports is controlling procurement spending. By analyzing revenue by supplier and by item, a company can identify the main drivers of expenses. This is crucial for keeping operating costs under control and improving overall profitability.

Assessing Delivery Timeliness and Reliability

Timeliness in receiving supplies is a key element for the proper functioning of the company. Analysis of purchase reports allows you to assess whether suppliers meet the expected delivery times. If frequent delays are identified, corrective actions can be taken to avoid production interruptions or inconvenience to customers.

Using Filters for Targeted Analysis

As in the case of sales reports, purchase reports can also benefit from the use of filters. For example, you can apply filters based on analysis dimensions set in the Microsoft Dynamics 365 Business Central ERP, such as cost center. This allows you to analyze procurement spending in relation to specific areas or business divisions, identifying any variations or optimization opportunities.

In conclusion, purchase reports are an indispensable tool for any company that wants to effectively manage its operations and associated costs. Through detailed analysis of orders, invoices, and supplier performance, companies can make informed decisions to improve their efficiency, reduce costs, and ensure a reliable supply chain.

In the next post, we will wrap up the Power BI topic by considering the analysis of inventory data.

So Smart is the online management software that helps you automate processes, monitor real-time data, produce analytical reports, and control compliance. So Smart is the cloud solution accessible from any browser, but you can also access it from your computer, smartphone, or tablet by installing the dedicated app, to monitor and plan your activities at any time. So Smart offers Power BI to analyze sales and purchases trends, inventory, credits, and all the indicators that allow you to make informed decisions.