If you keep up with the latest business trends at all, you’ve probably heard the term “data analytics.” Many medium- and large-sized businesses are even hiring full-time data analysts. But what exactly is data analytics, and why do so many businesses find it indispensable?
From defense contractors like Boeing, to Amazon, to smaller warehouses across the world — data analytics have become an important part of day-to-day business operations.
The Foundation of Data Analytics
It seems obvious — but data analytics cannot exist without data. Data refers to any information, typically numerical. Some common pieces of data that play an important role in warehouses include stock levels, orders fulfilled, return rate, and processing time. Other generally important data can include quarterly sales, number of clients, profit, profit margins, employee productivity, and more.
Data analytics seeks to explore, define, examine, and explain the trends behind the numbers. A good data analyst creates reports or dashboards that allow business owners to understand the driving forces behind their data. With the right data analyst, or data analytics software, a business can take charge of their operations — by making informed decisions based on what the numbers report.
Basic Data Analytics
Before your data can be analyzed, it has to be collected. And before data is collected, it’s important to define a system.
Data collection can take many forms. Some businesses rely on data entry clerks and Excel. Others use highly sophisticated, automated RFID systems. Depending on your business’ size and budget, you may use a mix of techniques.
However you decide to collect data, it is important to define what data you’re collecting and who is responsible for its collection. It is also important to create standards for how data should be entered or recorded. Otherwise, minor differences in data entry can make accurate reporting possible.
Once you have consistently collected data for some period of time, you can then analyze it to discover underlying trends. For many business owners, analysis requires a data analyst. Data analysts often have experience in creating, automating, and running reports; creating dashboards; and programming in SQL and VBA.
If you don’t have the resources to hire a full-time analyst, consider investing in an ERP or WMS. These kinds of software generally have data analytics tools built in.
Benefits of Data Analytics
There are many benefits to data analytics. Here are a few ways it can help your business:
- Accurately report on internal operations for
auditing - Assist in improving day-to-day workflow
- Make informed decisions about product lines and
stock - Assess how many employees are necessary for
operations - Make intelligent cuts to staff or product when
necessary
Ready to take the leap
into data? Vodigy ensures you won’t get lost! Call us today for help in
creating our own data analytics pipeline!
