Have you ever thought about the mind numbing array of statistics that sports commentators go through during just about any sports telecast? It seems that for every position or every action there is a raft of different stats that someone, somewhere seems to think matters. I guess that the commentators have to fill time in the breaks and slow parts somehow. These stats also help with the illusion that the commentators know what is going on! Next time you watch some sport try asking this question every time that a commentator presents some stats - ‘so what?’
In many ways this is also what happens in inventory management and the array of statistics that people generate. This is often data masquerading as information. Recently I was reviewing some files sent to me by a client company and I honestly couldn’t navigate my way through them without assistance. The accountants at that company had developed these amazing spreadsheets that sliced and diced the inventory every which way. They could tell you almost every inventory related statistic that you could possibly think of (and several that they had made up for themselves).
The problem of course, and the reason that they are working with me, is that their inventory is overstocked and they are not quite sure how to change that situation and achieve true optimization. All of the, so called, analysis hasn’t help them overcome that problem, it has just helped them redefine the problem in about 150 different ways. The statistics haven’t provided any real insight.
As you look at how to better manage your own inventory and as you work towards your goals for 2011, just remember that mucking about with statistics isn’t analysis, it is commentator time filler! Genuine analysis will always answer the simple question ‘so what’?
