Inventory analysts are responsible for an organization’s purchasing inventory. They manage inventory items and help businesses make good decisions regarding inventory purchases. These analysts primarily work in warehouse and office environments and are a part of a retail/manufacturing organization’s operations staff. What does an inventory analyst do?
What is inventory analysis?
Inventory analysis is defined as the examination of inventory to determine the right amount to keep in stock. It is a study of how product demand changes over time and refers to the calculations done in order to help an organization better understand their inventory levels.
Inventory analysis is ultimately very important to a company’s performance and bottom line. The benefits it offers includes reduced capital costs, Improved cash flow, reduced stockouts, smooth operation, improved customer satisfaction, and reduced project delays.
There are different types of inventory analysis methods, some of which can be seen down below:
- ABC analysis
- Batch tracking
- HML analysis
- Safety stock inventory
- Just-in-time inventory management
- SDE analysis
Responsibilities of an inventory analyst
Inventory analysts are in charge of managing inventory items, performing inventory analysis, and controlling day-to-day inventory operations.
They determine and direct where the inventory needs to go and use statistics to determine which products are selling and which are under-performing. They also develop plans to ensure smooth product flow and place and track inventory orders.
These analysts are responsible for working with project managers to maximize sales and reduce overstocks and are also in charge of coordinating the supply chain.
They manage any inventory adjustments and transfers, document any discrepancies, and write up inventory reports on a regular basis. They also analyze the root causes of any inventory issues, provide resolutions, and suggest improvements to inventory control.
What is the job of an inventory analyst?
- Managing inventory items
- Performing inventory analysis
- Controlling day-to-day inventory operations
- Determining and directing where the inventory needs to go
- Using statistics to determine which products are selling and which are under-performing
- Developing plans to ensure smooth product flow
- Placing and tracking inventory orders
- Working with project managers to maximize sales and reduce overstocks
- Coordinating the supply chain
- Managing any inventory adjustments and transfers
- Documenting any inventory discrepancies
- Writing and maintaining inventory reports
- Analyzing the root cause of inventory issues and providing solutions
- Suggesting improvements to inventory control
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Skills of an inventory analyst
Inventory analysts have excellent computer skills and are able to work with computer software that handle databases and spreadsheets. They must also be able to create digital reports and analyze inventory statistics using specific software programs.
They have advanced organizational skills and have the ability to pay very close attention to detail. These analysts also have excellent mathematical and analytical skills.
These analysts have strong problem-solving skills as well as excellent time management skills. They also have the ability to manage multiple tasks at once and possess strong communication skills – both verbal and non-verbal.
What are the skills of an inventory analyst?
- Excellent computer skills
- Experience with databases and spreadsheets
- Ability to create digital reports
- Expert organizational skills
- Ability to analyze inventory statistics using software programs
- Strong mathematical skills
- Attention to detail
- Strong analytical skills
- Excellent time management skills
- Strong multi-tasking skills
- Excellent verbal and non-verbal communication skills
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Inventory analysts are required to have at least a Bachelor’s degree. This could be in Supply Chain Management, Business Administration, Finance, Accounting, Marketing or a related field.
You can also take advantage of online courses and obtain certifications to help advance your career. Check out options for these down below:
- Supply Chain Analytics Specialization
- The Complete Course on Inventory Management Training
- Supply Chain Fundamentals: Inventory Management
- Inventory Management A-Z: Supply Chain & Business Operations
The salary for an inventory analyst depends primarily on the type of organization they work for. An analyst that’s just starting out in the field can expect a salary of around $44,000 per year.
Analysts with a few years of experience, on the other hand, can earn up to $56,000 per year whereas senior analysts can earn up to $72,000 per year.
In Germany, the salary range for analysts is between €35,600- €60,900 whereas in the UK, the range is £19,000-£39,000.
How much do inventory analysts make?
What does a freelance inventory analyst earn?
The average freelancer hourly rate of an inventory analyst is $83. Considering an 8-hour working day, the daily rate would be around $664 (freelancermap price index – August 2021).
Inventory analyst job description template
Here you can find a free template for an Inventory Analyst job description:
Inventory analysts are detail-oriented and have the ability to maximize an organization’s production. If you’re looking for a professional who can take care of your inventory operations, here’s a job description template that will help you find the perfect analyst:
We are looking for an expert analyst who can help us manage inventory items, perform inventory analysis, and control our day-to-day inventory operations. You must have excellent computer skills, be familiar with databases and spreadsheets, and must also be able to analyze inventory statistics using software programs.
– Perform inventory analysis
– Determine and direct stockroom workers on where the inventory needs to go
– Use statistics to determine which products are selling and which are under-performing
– Place and track inventory orders
– Work with project managers to maximize sales and reduce overstocks
– Document any inventory discrepancies
– Write and maintain inventory reports
– Excellent computer skills
– Experience with databases and spreadsheets
– Ability to create digital reports
– Expert organizational skills
– Strong mathematical skills
– Attention to detail
– Strong analytical skills