Retail Inventory Analytics: Know What to Reorder, Mark Down and Stop Buying
Cash sits on shelves in sizes nobody buys while the best sellers run out on a Saturday. Your point of sale already knows all of this; it just doesn't say it in a way a buyer can act on by Monday.
Retail inventory analytics turns the stock and sales data in your point of sale or ERP into a short list of measures that tell buyers what to reorder, what to mark down and what to stop buying. Lightray Solutions builds these reports in Power BI for independent and multi-store retailers and online sellers; Edward Pinela, MBA, does the work.
A first set of inventory reports is quoted at a fixed price after a short discovery; changes to reports you already run use Power BI Flex Support, from $2,500 for 20 hours at $100 to $125 an hour. It starts with a free 30-minute strategy call, and you get an answer within 4 business hours.
Which inventory measures matter most?
Six cover most buying decisions: sell-through, weeks of supply, GMROI, stockout rate, dead stock and the reorder point. Each answers a different question, from 'did this buy work?' to 'when do I order again?', and each is only as good as the on-hand counts behind it. The table gives the formula and the decision each one supports.
| Measure | Formula | Question it answers |
|---|---|---|
| Sell-through rate | Units sold ÷ (units sold + units still on hand at period end) | Did this buy sell at the pace we planned? |
| Weeks of supply | Units on hand ÷ average weekly units sold | How long will current stock last? |
| GMROI (gross margin return on inventory investment) | Gross margin dollars ÷ average inventory at cost | How much margin does each dollar of stock earn? |
| Stockout rate | Item-locations at zero on hand ÷ item-locations that should be stocked | Where are we losing sales to empty shelves? |
| Dead stock | On-hand value of items with no sales in a set period, such as 90 days | How much cash is stuck, and what should be cleared? |
| Reorder point | Average daily demand × supplier lead time in days + safety stock | When must the next order go out? |
Where does the inventory data come from?
From the system that already tracks your stock. Shopify, Square, Lightspeed and most retail ERPs hold sales by item and location, on-hand counts and receipts. Power BI reads them through a connector, an API or scheduled exports, then joins them with costs and purchase orders so margin and supplier lead time can be measured, not guessed.
Shopify's own reports define sell-through as units sold divided by units sold plus units still in stock, and estimate days of inventory remaining from the previous 28 days of sales. Where you sell on Shopify we match those definitions, so the dashboard agrees with the admin screens your team already checks. Square's Inventory API records each movement, such as a receipt or a sale, as a separate adjustment rather than only an on-hand total, so the dashboard can show how stock moved, not just what is left.
What does the dashboard do each week?
It gives buyers a Monday list: items below their reorder point with a suggested order quantity, best sellers with less than two weeks of supply, new lines with weak sell-through since they arrived, and dead stock ranked by value. Owners get a separate page with GMROI by category, vendor and store, which is where buying budgets are won and lost.
- Reorder list. Item, location, on hand, on order, weeks of supply and the suggested quantity, filtered to what needs action this week.
- Store balancing. Items overstocked in one store and short in another, so a transfer can be tried before a new purchase order.
- Vendor scorecard. Actual lead time and fill rate by supplier against what was promised, which feeds straight back into the reorder points.
- Dead stock. Value with no sales in 60, 90 or 180 days, ready for a markdown decision. How to clear it is covered on our markdowns in retail page.
How accurate does our inventory data need to be?
Accurate enough that on-hand counts are trusted at item and location level. If they aren't, the first report we build is a data-quality one: negative stock, items never counted, missing costs and receipts that were never posted. Fixing those at the source is usually worth more than any forecast you could build on top of bad counts.
We also start with simple, explainable rules, such as reorder points from measured lead times and seasonal history, before anything more elaborate. A buyer who understands why the report says 'reorder' will act on it; one who doesn't will go back to the spreadsheet.
What does retail inventory analytics cost?
One sales system with clean item data is a modest fixed-price project; several systems, a messy item master or costs held outside the point of sale make it larger, and the written quote shows that before you commit. Flex Support hours handle later additions, and they never expire.
Power BI projects come with a guarantee: if you don't enjoy working with us within the first 4 hours, we return your money. Edward has 20+ years in business and data and 200+ projects to his name, and Lightray holds a 4.9★ rating from Google reviewers.
Further reading: Shopify Help Center — Inventory reports.
Want a Monday reorder list you can trust?
Book a free 30-minute call with Edward Pinela, MBA. You get an honest read on what to fix first — and if we are not the right fit, you will hear that on the call.
Frequently asked questions
Do we need to replace our point of sale or ERP?
No. The reports read the system you have. If stores run different systems, for example after an acquisition, the model maps them to one product list and one set of definitions before anything is compared.
We sell online and in stores. Can one report cover both?
Yes. Online and store sales are combined by item, with stock shown by location, including the warehouse or store that fulfils online orders, so you can see whether a transfer would cover an online shortfall before reordering.
How long does a first version take?
Three to five weeks for one sales system with clean item data. A messy item master, several systems or cost data kept outside the point of sale add time, and the fixed quote after discovery says how much.
What do you need from us?
Admin or read access to the point of sale or ERP, supplier lead times if they are recorded anywhere, and a buyer or store manager who can spend an hour a week checking whether the drafts match what they see on the shelves.
You Won’t Get Handed Off to Junior Staff.
At most consulting firms, the senior person who sold you shows up for the kickoff — then you get handed to a team of juniors learning on your dime. That’s not how we work.
When you hire Lightray Solutions, you work directly with Edward Pinela, MBA — a principal consultant with 20+ years of experience across Power BI, web development, SEO, and CRM systems. Edward architects every engagement personally, stays involved through delivery, and answers his own phone.
Read Edward’s Full Bio“Mid-market companies deserve senior-level expertise without paying enterprise-agency prices. That’s the gap Lightray fills.”
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