Once you have collected your inventory data, you need to analyze it to extract meaningful insights and actions. Depending on your objectives and questions, you can use different techniques and metrics to analyze your inventory data. For example, the inventory turnover ratio measures how often you sell and replace your inventory in a given period, helping you assess efficiency, demand, and profitability. Additionally, inventory shrinkage measures the difference between actual and expected inventory due to theft, damage, spoilage, or errors – allowing you to identify and prevent losses. Furthermore, inventory forecasting predicts future needs based on past sales, trends, and seasonality; while inventory segmentation categorizes your inventory based on its value, popularity, or profitability – helping you prioritize inventory management strategies.