In previous posts, we first explored how Power BI can assist you in analyzing data related to customer aging, and later, we discussed how Power BI can make a difference in the analysis of sales data.
In this post, we will instead focus on purchasing. If you believe that Power BI may not be useful in this context, reading further might change your perspective.
Purchase reports, in fact, constitute a fundamental tool for examining and managing purchasing transactions within a company. They provide a detailed analysis of orders and invoices from suppliers, enabling a comprehensive evaluation of procurement management, supplier performance, and procurement expenditure 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 instance, imagine that a company discovers it's purchasing a significant quantity of a particular item from a supplier, but this item isn't selling well. This situation might suggest the need to review the purchasing strategy to avoid excess inventory or consider more cost-effective alternatives.
Evaluating Supplier Performance
Purchase reports also allow you to evaluate the reliability of suppliers. If you're experiencing frequent delivery delays or quality issues with products from a specific supplier, this can directly impact the supply chain and customer satisfaction. Identifying these issues promptly allows for improvements or considering the opportunity to change suppliers.
Monitoring Procurement Expenditure
An essential aspect of analyzing purchase reports is the control of procurement expenses. By analyzing turnover by supplier and by item, a company can identify the main drivers of expenditure. This is crucial for controlling operating costs and improving overall profitability.
Evaluating Punctuality and Delivery Reliability
Punctuality in receiving supplies is a key element for the proper functioning of a company. The analysis of purchase reports allows evaluating whether suppliers meet the specified delivery times. If frequent delays are noticed, corrective actions can be taken to avoid production disruptions or inconvenience to customers.
Using Filters for Targeted Analysis
Just like 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 Microsoft Dynamics 365 Business Central, such as the cost center. This allows for analyzing procurement expenses in relation to specific business areas or divisions, identifying variations or optimization opportunities.
In conclusion, purchase reports are an essential tool for any company that wants to effectively manage its operations and associated costs. Through a detailed analysis of orders, turnover, and supplier performance, companies can make informed decisions to improve efficiency, reduce costs, and ensure a reliable supply chain.
In the next post, we'll wrap up the Power BI topic by considering inventory data analysis.