Automated Inventory Ratio %
The percentage of inventory management tasks that are automated, enhancing efficiency and reducing manual errors.
40+ Inventory Management KPI Examples
Ensure optimal stock levels, reduce wastages, and improve turnover rates.
Most Popular Inventory Management KPIs
Average Age of Inventory time
Represents the average number of days items stay in inventory before being sold.
Average Dock-to-Stock Time time
This metric indicates the average time it takes for goods to move from the receiving dock to available inventory.
Average Inventory Value $
This indicates the average monetary value of inventory held over a period.
Backorder Rate %
The ratio of items that are ordered but currently out of stock to total sales, indicating how often sales cannot be immediately fulfilled.
Comprehensive List of Inventory Management KPIs
Costs & Value
Average Inventory Value $
This indicates the average monetary value of inventory held over a period.
Carrying Costs, Finished Goods $
These are the costs associated with holding inventory that's ready for sale.
Gross Margin Return on Inventory Investment ratio
This metric evaluates the return on every dollar invested in inventory.
Holding Cost per Unit $
Represents the average cost to hold each unit of inventory.
Insurance Costs as Percentage of Inventory Costs %
Indicates the portion of inventory costs represented by insurance.
Inventory Holding Costs as Percentage of Gross Sales %
This KPI measures the proportion of gross sales that's consumed by the costs of holding inventory.
Inventory Holding Costs as Percentage of Inventory Value %
Represents the proportion of inventory value consumed by holding costs.
Value of Obsolete Stock $
This KPI measures the monetary value of stock that's no longer relevant or sellable.
Efficiency & Performance
Average Dock-to-Stock Time time
This metric indicates the average time it takes for goods to move from the receiving dock to available inventory.
Economic Order Quantity #
EOQ provides the ideal order quantity to minimize costs related to order, holding, and shortage costs.
Fill Rate %
Represents the percentage of customer orders that are fulfilled from stock on hand.
Frequency of Canceled Orders #
Highlights the number of orders canceled, either due to stockouts or other operational inefficiencies.
Frequency of Emergency Orders #
This KPI measures how often emergency orders are placed, indicating potential inefficiencies in order prediction or supplier reliability.
Order Lead Time time
The time it takes from placing an order to its receipt.
Rate of Correctly Picked Line Items %
The percentage of items correctly picked from inventory for order fulfillment.
Inventory Accuracy & Integrity
Cycle Count Accuracy %
Assesses the accuracy of inventory counts done periodically (daily, weekly, monthly) compared to the inventory management system records.
Inventory Accuracy %
Measures the percentage comparison of the physical count of inventory items to the recorded amount in the inventory management system.
Inventory Location Accuracy %
Determines how often inventory items are found in their designated locations within a warehouse or storage facility.
Inventory Shrinkage as Percentage of Inventory Value %
Represents the reduction in the recorded inventory value that is not accounted for by sales.
Rate of Inventory Items Incorrectly Located %
Assesses the rate at which items are not found in their designated or recorded locations.
Rate of Inventory Items with Incorrect Stock Balances %
Calculates the rate at which the recorded stock balance does not match the actual physical count.
Safety, Risk & Waste Management
Damaged Stock Rate %
Represents the percentage of stock that gets damaged.
Inventory to Obsolete Goods Ratio ratio
Indicates the relation between the total inventory and obsolete items.
Rate of Expired Items to Inventory Value %
This KPI measures the percentage of the inventory's value that consists of expired items.
Rate of Safety Stock Used %
Indicates the portion of safety stock that's utilized, offering insights into whether the safety stock levels are appropriate.
Size of Safety Stock #
Safety stock is the quantity of stock held to guard against stockouts.
Stock Obsolescence Rate %
Shows the rate at which inventory becomes obsolete.
Value of Items Stolen from Inventory $
The total value of inventory items stolen.
Stock Levels & Turnover
Average Age of Inventory time
Represents the average number of days items stay in inventory before being sold.
Backorder Rate %
The ratio of items that are ordered but currently out of stock to total sales, indicating how often sales cannot be immediately fulfilled.
Inactive Inventory as Percentage of Inventory Value %
Measures the value of items that have not been sold or used for a long period, indicating potential dead stock that ties up capital.
Inventory Days of Supply time
Indicates how many days the current inventory will last at the current sales rate without new stock.
Inventory Turnover #
This KPI measures how often an organization's inventory is sold and replaced over a given period.
Sell-through Rate %
Measures the amount of inventory sold in relation to the amount received.
Stock Availability Rate %
Indicates the percentage of time items are available in stock when requested, pointing to the effectiveness of inventory management.
Stock Cover time
The duration of time the current inventory will last given the sales rate.
Stockouts in Period #
The number of times stock was unavailable when requested in a specific period.
Supplier Performance
Supplier Compliance Rate %
Measures how frequently a supplier adheres to contractual terms, industry standards, and regulatory guidelines.
Supplier Defect Rate %
Represents the percentage of received goods from a supplier that are defective.
Supplier Lead Time Variability time
Indicates the variation in lead time for orders from a particular supplier.
Supplier On-time Delivery Rate %
Measures the frequency at which suppliers deliver orders within the stipulated timeframe.
Technology & Modern Methods
Automated Inventory Ratio %
The percentage of inventory management tasks that are automated, enhancing efficiency and reducing manual errors.
Inventory System Downtime time
The amount of time the inventory management system is unavailable due to technical issues.
Percentage of Duplicate Stock Numbers %
Represents the percentage of inventory items with duplicate stock numbers.
Rate of Items Tracked with RFID %
Indicates the proportion of inventory items tracked using Radio Frequency Identification (RFID).