Warehouse Space Utilization Analysis

Project Overview

The Warehouse Space Utilization Analysis project aims to evaluate how effectively warehouse space is being used. By analyzing the data related to warehouse inventory, the goal is to identify inefficiencies and provide recommendations to optimize space utilization.

Objectives

• Assess current space utilization in the warehouse.

• Identify patterns and trends in space usage over time.

• Provide actionable insights to improve warehouse efficiency and reduce costs.

Dataset Description

The dataset for this project includes various details about products stored in a warehouse. The dataset will be used to calculate utilization rates and analyze the profitability of the stored items.

Link to dataset

Analysis Steps

• Data understanding, preparation, feature understanding using Python - Pandas, NumPy and Seaborn.

Link to Python analysis code

• Interactive Dashboard using Microsoft Power Bi

Developed a warehouse space utilization dashboard using Power BI, providing key insights such as total warehouse space, space utilized, utilization rate, profit, margin, products with low profit, products utilizing more space, and other critical metrics.

Link to Dashboard

Interesting Insights

1. Under Sections,

   - Refrigerated have higher utilization rate

   - Perishables have medium utilization rate

   - Dry goods have lower utilization rate

   
   

2. Under categories, Groceries are utilizing the most space and comes 6th in profit.

   
   

3. Trend in space utilization and  revenue over time correlate with each other.

   
   

4. Product 701 have low utilization but high holding costs.

   
   

5. Profit margin dips in Groceries

   
   

6. September 5th and September 21 records highest sales as First and Second respectively.

   
   

7. Upon analysis, three sections are underperforming. Notably, the dry goods section has a very low utilization rate, with only 183 units of space utilized out of an average total warehouse space of 12,780. However, despite the low utilization, dry goods are generating higher profits compared to the other two sections. In contrast, the refrigerated section is utilizing significantly more space, yet it is underperforming in terms of profit.

Suggested Recommendations

• Since dry goods are generating higher profit despite low utilization, consider increasing inventory for these items to maximize space utilization. This could help improve overall revenue without a significant increase in operational costs.

  
  

• Since the refrigerated section is using more space but is underperforming in terms of profit, evaluate the product mix. Identify underperforming products and either replace them with higher-margin items or reduce their inventory levels.

  
  

•  Since refrigerated is underperforming, consider reallocating some of the refrigerated space to more profitable categories, such as dry goods.

  
  

• Groceries are using the most space but rank 6th in profit. Perform a detailed analysis of the product mix within the grocery category to identify low-performing products. Remove or replace items with better-selling or higher-margin products.

  
  

• Slow-moving grocery items may be contributing to the low profit. Identify and phase out slow-moving products, replacing them with faster-moving, higher-profit alternatives.

  
  

• Since Product 701 has high holding costs but low utilization, consider reducing its inventory level to free up space.

  
  

• Revisit pricing strategies to align better with the market demand, or consider increasing prices on select items where possible without impacting demand.