Understanding Consumption and Costs

Usage analytics in Kora transforms raw inventory data into actionable insights. Understand consumption patterns. Track costs. Optimise procurement decisions. Identify trends over time. No more guessing at feed consumption rates. No more wondering where budget goes. No more making procurement decisions based on incomplete information.

This chapter explains how usage analytics work, what insights they provide, and how they support efficient, cost-effective operations.

Recording Inventory Usage

Usage analytics begin with recording how inventory is consumed:

Usage Recording:

• Quantity Used: Amount consumed from inventory
• Usage Date: When consumption occurred
• Purpose: Why item was used ("Routine feeding," "Treatment for Bull #A123," "Facility maintenance")
• Used By: Who consumed or administered the item
• Animal Link: If used for specific animal treatment, link to that animal
• Notes: Additional context

Example usage record:

Inventory Item: Clostridial 7-in-1 Vaccine
Quantity Used: 2ml (1 dose)
Usage Date: 2025-03-10
Purpose: Routine annual vaccination
Animal: Bull #A123
Used By: Sarah (Farm Manager)
Batch Number: VAC-2024-12345
Notes: "Annual booster. No adverse reactions observed. Next booster due March 2026."

Automatic vs Manual Recording:

• Automatic: When treatment is recorded for an animal (Chapter 10), inventory can be automatically reduced. Usage is recorded simultaneously.
• Manual: Bulk usage, facility consumption, or non-animal uses are recorded manually

Usage records accumulate creating data foundation for analytics and insights.

Consumption Pattern Analysis

Understand how inventory is consumed over time.

What Consumption Patterns Show:

• Usage Rates: How quickly items are consumed (500kg feed per week, 20 vaccines per month)
• Seasonal Variation: Consumption changes across seasons (higher feed in winter, increased vaccines before disease season)
• Trend Identification: Increasing or decreasing consumption over time
• Forecasting: Predict future needs based on historical patterns

Example consumption pattern analysis:

Feed - Cattle Protein Pellets (Last 12 months):

Monthly Consumption:
  Jan 2024: 14,000kg
  Feb 2024: 14,500kg
  Mar 2024: 13,200kg
  Apr 2024: 12,800kg
  May 2024: 12,500kg
  Jun 2024: 12,000kg (winter - lower consumption)
  Jul 2024: 11,800kg
  Aug 2024: 12,200kg
  Sep 2024: 13,500kg (spring - consumption increasing)
  Oct 2024: 14,800kg
  Nov 2024: 15,200kg
  Dec 2024: 15,500kg

Average Monthly Consumption: 13,500kg
Seasonal Pattern: Higher in summer/autumn (14,000-15,500kg), lower in winter (11,800-12,500kg)
Annual Trend: Slight increase (12-month average up 8% from prior year)

Insights:
- Winter reduction likely due to pasture grazing availability
- Increasing trend correlates with herd population growth (15 new calves)
- Current consumption 15,500kg/month requires reorder every 30 days at optimal stock level

Practical Application:

• Forecasting: "Based on seasonal pattern, expect 15,000kg/month consumption next spring"
• Budget Planning: "Annual feed cost approximately $75,000 at current rates and pricing"
• Inventory Planning: "Maintain 30-day optimal stock (15,000kg) accounting for seasonal peaks"
• Operational Decisions: "Herd growth increasing consumption. Evaluate if pasture capacity sufficient."

Consumption pattern analysis transforms historical data into forward-looking operational intelligence.

Cost Tracking

Monitor spending across inventory categories, items, and time periods.

Cost Analysis Capabilities:

• Total Spending: Overall inventory expenditure
• Category Spending: Costs by category (Feed: 60%, Medication: 15%, Equipment: 10%, etc.)
• Item Spending: Costs for specific items
• Time Period Comparison: Monthly, quarterly, or annual cost trends
• Supplier Spending: Total spend with each supplier

Example cost tracking analysis:

Inventory Costs - Year 2024:

Total Annual Spending: $92,450

By Category:
  Feed: $55,200 (60%)
  Medication: $14,100 (15%)
  Vaccines: $8,300 (9%)
  Veterinary Supplies: $6,200 (7%)
  Equipment: $5,100 (6%)
  Other: $3,550 (3%)

Top 5 Cost Items:
  1. Cattle Feed - Protein Pellets: $45,000 (49% of total)
  2. Broad-Spectrum Antibiotic: $6,800
  3. Clostridial Vaccines: $4,200
  4. Mineral Supplements: $3,900
  5. Parasite Control: $3,100

By Supplier:
  FeedCorp: $48,000 (52%)
  VetSupply Ltd: $22,400 (24%)
  EquipmentDirect: $12,100 (13%)
  Others: $9,950 (11%)

Monthly Trend:
  Avg Monthly Spend: $7,700
  Highest Month: November ($9,200 - bulk feed purchase before winter)
  Lowest Month: June ($6,100 - minimal purchases during pasture season)

Insights from Cost Tracking:

• Budget Allocation: Feed dominates costs (60%). Budget accordingly.
• Supplier Concentration: FeedCorp represents half of spending. Strong relationship critical.
• Seasonal Planning: Expect higher costs in November due to winter stock-up.
• Cost Control Opportunities: Top 5 items represent 70% of costs. Optimisation here has biggest impact.

Cost Optimisation Questions:

• "Can we negotiate volume pricing with FeedCorp for 50%+ spend relationship?"
• "Alternative suppliers for antibiotics reducing $6,800 cost?"
• "Seasonal bulk purchasing for winter feed reducing per-unit costs?"
• "Preventive health programmes reducing medication spending?"

Cost tracking provides visibility enabling data-informed financial decisions.

Procurement Optimisation

Use analytics to optimise purchasing decisions and supplier selection.

Optimisation Insights:

• Reorder Timing: When to order based on consumption rates and lead times
• Reorder Quantity: How much to order balancing stock-out risk vs capital tied in inventory
• Supplier Selection: Which suppliers offer best balance of cost, reliability, and quality
• Bulk Purchasing Opportunities: Items suitable for volume discounts
• Seasonal Procurement: Pre-buying before seasonal demand or price increases

Example procurement optimisation:

Item: Cattle Feed - Protein Pellets

Current Procurement:
  Supplier: FeedCorp
  Order Frequency: Every 30 days
  Order Quantity: 15,000kg
  Unit Price: $0.45/kg
  Annual Cost: $45,000
  Annual Orders: 12

Optimisation Analysis:
  Consumption Rate: 500kg/day
  Lead Time: 3 days
  Safety Stock: 5,000kg (10 days)
  Current Min Stock: 5,000kg triggers reorder
  Current Optimal Stock: 15,000kg

Optimisation Opportunity:
  Bulk Purchase Option: 45,000kg quarterly shipment
  Bulk Price: $0.42/kg (volume discount)
  Storage Capacity: Available (20,000kg capacity feed shed)
  Capital Impact: $18,900 quarterly vs $3,750 monthly

  Annual Savings: $4,500 (10% cost reduction)
  Trade-off: Higher capital commitment, storage space required

Decision Factors:
  ✓ Storage capacity available
  ✓ Feed stable for 3-month storage
  ✓ Cash flow supports quarterly payment
  ✓ $4,500 annual savings significant
  → Recommendation: Implement quarterly bulk purchasing

Practical Procurement Decisions:

When to Optimise for Cost:

• High-volume consumption items (feed, bedding)
• Stable long-term needs
• Adequate storage capacity
• Strong cash flow

When to Optimise for Reliability:

• Critical items (emergency medications)
• Items with unpredictable availability
• Seasonal shortage risk
• Items with limited shelf life

When to Optimise for Flexibility:

• Items with variable consumption
• Items with uncertain future needs
• Limited storage capacity
• Tight cash flow

Procurement optimisation balances cost, reliability, and operational constraints based on specific circumstances.

Usage Trends Over Time

Track how inventory consumption changes revealing operational patterns.

Trend Analysis Capabilities:

• Increasing Consumption: Growth trends requiring capacity planning
• Decreasing Consumption: Efficiency improvements or population changes
• Cyclical Patterns: Seasonal or periodic consumption rhythms
• Anomaly Detection: Unusual consumption spikes or drops

Example trend analysis:

Vaccination Programme - Last 3 Years:

Year 2022:
  Annual Vaccines Administered: 850
  Avg Cost per Vaccine: $4.20
  Total Vaccine Cost: $3,570

Year 2023:
  Annual Vaccines Administered: 920 (8% increase)
  Avg Cost per Vaccine: $4.35 (3.5% price increase)
  Total Vaccine Cost: $4,002 (12% cost increase)

Year 2024:
  Annual Vaccines Administered: 1,050 (14% increase from 2023)
  Avg Cost per Vaccine: $4.50 (3.4% price increase)
  Total Vaccine Cost: $4,725 (18% cost increase)

Trends Identified:
  Usage Trend: Steady increase (850 → 920 → 1,050 vaccines)
  Price Trend: Consistent ~3-4% annual price inflation
  Cost Impact: Volume and price combined = 12-18% annual cost growth

Drivers Analysis:
  - Herd population grew 15% (2022-2024)
  - Enhanced health protocols expanded vaccination coverage
  - New disease threats added vaccination requirements

Implications:
  - Budget: Plan for $5,500 vaccine cost in 2025 (continuing trends)
  - Procurement: Consider 2-year supply agreements locking prices
  - Operations: Vaccination programme expansion justified by herd growth
  - Review: Assess cost-benefit of expanded protocol vs disease risk reduction

Trend-Based Decisions:

• Capacity Planning: Increasing feed consumption signals need for storage expansion
• Budget Forecasting: Cost trends inform realistic budget projections
• Supplier Negotiation: Usage growth supports volume discount negotiations
• Operational Review: Unexpected trends prompt investigation (Why is medication usage suddenly up 30%?)

Trend analysis transforms historical data into future-oriented operational intelligence.

Animal-Specific Usage Analytics

When inventory usage links to specific animals, analytics provide animal-focused insights.

Animal-Level Insights:

• Per-Animal Costs: Medication and treatment costs for individual animals
• Species Comparison: Cost differences between animal types
• Health Investment: Animals requiring significant medical inventory use
• Treatment Patterns: Common medications and vaccines for different animals

Example animal-specific analysis:

Bull #A123 - Inventory Usage (2024):

Vaccinations:
  Clostridial 7-in-1: 1 dose ($4.50)
  Leptospirosis: 1 dose ($6.20)

Medications:
  Antibiotic treatment (respiratory infection March): $45.00
  Pain management (injury recovery June): $28.00
  Parasite control (routine): $12.00

Specialised Care:
  Joint supplement (ongoing arthritis management): $120.00

Total Annual Inventory Cost for Bull #A123: $215.70

Fleet Comparison:
  Average Annual Cost per Breeding Bull: $185.00
  Bull #A123 Cost: $215.70 (17% above average)
  Driver: Arthritis management supplement ($120) and respiratory treatment ($45)

Insights:
  - Joint supplement cost-effective vs veterinary visits for arthritis management
  - Respiratory infection isolated incident, not recurring pattern
  - Overall health investment reasonable for breeding bull value

Species-Level Analysis:

Cattle vs Sheep - Annual Inventory Costs:

Cattle (50 head):
  Feed: $42,000
  Medication: $3,200
  Vaccines: $2,800
  Other: $1,500
  Per-Animal Average: $955/year

Sheep (200 head):
  Feed: $18,000
  Medication: $2,100
  Vaccines: $1,600
  Other: $800
  Per-Animal Average: $112/year

Insights:
  - Cattle significantly higher per-animal cost (expected due to size)
  - Sheep medication costs proportionally higher (parasite challenges)
  - Vaccination programmes comparable efficiency both species

Zoo Animal-Specific Analysis:

Giant Panda - Specialised Diet Inventory (2024):

Bamboo Supply:
  Annual Consumption: 18,000kg
  Cost: $36,000 (specialised supplier)
  Per-Day Average: 49kg
  Notes: "Multiple bamboo species rotated for nutrition and enrichment"

Enrichment Items:
  Puzzle feeders: $450
  Environmental enrichment: $800
  Training rewards: $300

Veterinary Supplies:
  Annual health monitoring: $1,200
  Preventive care: $600

Total Annual Inventory Cost: $39,350

Insights:
  - Bamboo represents 91% of inventory costs (species-specific requirement)
  - Enrichment investment supports behavioural health
  - Preventive care reduces emergency medical costs

Veterinary Practice Client Analysis:

Client: Riverside Equestrian Centre (2024):

Equine Vaccines:
  Tetanus boosters: 25 horses × $12 = $300
  Influenza vaccines: 25 horses × $18 = $450
  Strangles vaccines: 15 horses × $22 = $330

Medications:
  Antibiotics (various treatments): $680
  Anti-inflammatories: $520
  Wound care supplies: $340

Total Annual Inventory Usage for Client: $2,620

Insights:
  - Preventive vaccination programme well-maintained
  - Medication usage moderate (good overall herd health)
  - Strong client relationship with regular inventory turnover

Animal-specific analytics inform animal health investment decisions. They identify cost outliers. They support species-appropriate resource allocation across farms, zoos, and veterinary practices.