Data is one of the most powerful components of a business. Information gathering and information sharing can help shape the direction of a business, and it can support both staff and customers. Data is undoubtedly a very formative part of any business and a phenomenally important asset. With data, your business can make better decisions and run more efficiently as a result.
We are living in a world with so much data. Sometimes it’s hard to imagine everything that’s being recorded. It’s fair to feel like there infinite streams of data available to your business and coming from every direction. It can be overwhelming, and it’s important to know how to manage it. Of course there’s good data, but it’s important to be aware of all the of poor quality data out there. Let’s find out why poor quality data could be hurting your business.
Poor quality data causes poor data analysis
So you have all this data and now it’s time to make sense of it. However, one of the biggest issues is using data that is laden with errors. If there are mistakes riddled through the data, the analysis will yield incorrect information. This could guide you down a completely wrong direction.
Let’s say your data is on the monthly stocktake for the past six months. This stocktake information will help determine ordering amounts for future inventory. What if two inventory products got placed on the wrong shelves and the stock take was showing that the baby blue shoes were nearly out, when in fact it was the navy blue shoes that were flying off the shelves. This incorrect data could lead you to order more baby blue shoes and cause dead stock in your warehouse. It’s good to have audits and double check that your data is actually correct.
Poor quality data leads to poor visibility
Data is essential to capturing what’s going on in a business. With poor quality data, you’re at risk of losing visibility across the organisation. If data is getting entered incorrectly, or barcodes aren’t communicating with inventory management software, you might not know what is selling and moving from your warehouse.
Without good visibility, it becomes difficult to plan and forecast for the future. If poor quality data is disrupting visibility, it’s hard for management and decision makers to identify new opportunities or see areas that need improvement. This lack of visibility transfers across the whole organisation as fewer people really understand what’s going on; poor data can result in poor organisational transparency. It gives staff uncertainty and hinders achievement across departments.
Out of date data is poor quality
If you are using real-time data to make instantaneous decisions, then data that is old or dated will not help you in the current situation. Sure, old data helps you look at patterns and recognise what happened previously. However, old data won’t help you if you’re using it to make prompt decisions. Find the best way to extract and analyse your data quickly before it becomes old and redundant to your business.
Article by Melanie Chan in collaboration with our team of Unleashed Software inventory and business specialists. Melanie has been writing about inventory management for the past three years. When not writing about inventory management, you can find her eating her way through Auckland.