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Like we inhale air and it flows from our lungs to oxygenate the blood, inventory flows through the arteries of a supply chain, becoming the primary determinant of whether your business will thrust or thrive. For either of the two options, inventory is the keeper of all. And just like the functioning of the lungs, your business won’t be at its best until and unless you determine what you are “inhaling” and “exhaling”. Tracking, determining, and evaluating your workflows using several inventory management KPIs can give you the required knowledge and insights to streamline your processes, tighten the loose ends of a supply chain, improve customer retention rate, and align your far-sighted goals.
Noted Peter Drucker (Austrian-American management consultant, educator, and author) has rightly quipped, “If you can’t measure it, you can’t improve it.”
So, whether you are a newbie at management or an old hand looking for ways to revamp traditional policies, ensuring that the most critical inventory KPIs are being monitored and optimized during the process is the key step in the right direction.
Why tracking inventory management KPIs matter
Just like business process management has a deep and enduring impact on different areas of operations, inventory management metrics also impact several aspects like financial stability, health, performance, reputation, and many more. They establish clear benchmarks to hit every week, month, quarter, or year, thus reducing the guesswork involved. You can use them to make better decisions that have a positive impact on the functioning of the organization. They also assist in driving profitable behaviors, results, strategies, and decisions, thereby initiating a continuous improvement drive across the board.
10 important inventory management KPIs to monitor
No two businesses are identical. Similarly, when it comes to managing inventories, there are a plethora of metrics worth considering. Let's explore the 10 most promising ones from the list and use them to our advantage.
BONUS - To make your tracking and managing process effortless, we have added a few real-world examples and dashboards that you can download and use in a jiffy!
1. Inventory on hand
Knowing the number of stocked goods in your warehouse without bringing production to a halt is considered important to keep the cash flowing into the coffers. High inventory accuracy is thus an important practice as it helps in making better demand forecasts and leads to more strategic financial planning.
Template 1
A retailer can deploy this inventory planning complete deck to track stock inventories at different store locations. You can also use it to keep tabs on every store, predict the sales value, and make effective decisions. Download this template now to track and present with a single layout, which you can alter as well.
Download Inventory Planning Dashboard
Template 2
Keeping and presenting a perfect KPI dashboard is the key to organizational growth and prosperity. You can use this retail management KPI dashboard to fulfill this purpose and report all the important metrics with a single layout.
Download KPI For Inventory Accounts Payable
Template 3
Stay ahead of your competitors by displaying and presenting your average sales using this one-pager. Since this is a one-page layout, it comes in a very handy format that responds well to the needs and requirements of every user.
Download One Pager Apparel Inventory Sales Sheet
Template 4
Boost your productivity and intramural growth using this one-page layout. It will not only help you sort out inventories but also make comparisons about product performance using Excel-linked charts and graphs. Sport product retailers are the group that can benefit the most from this layout. Therefore, grab it now!
Download One Pager Sports Product Sales Sheet
2. Inventory turnover
Inventory turnover is a metric that helps in keeping track of how quickly the goods are being replaced or sold so that they do not gather dust on the shelves. This is an important yardstick that determines a company’s overall efficiency. Hence, the higher it is, the more profitable a venture will be.
Template 1
This dashboard is a great tool to present filtered product lines, inventory turnover, and other stats. It displays several charts and graphs, all Excel-linked. This makes it an invigorating tool for retailers to display and analyze multiple inventory management KPIs in a single go.
Download Inventory And Logistics Units Per Transaction Dashboards
Template 2
If you are looking for a real-time analytics tool to cover and optimize your procurement strategies, then this template will help make things smoother. It will serve as a guide to help you meet your financial targets by considering the common requirements of your industry and niche.
Download Overview Of FMCG KPI Dashboard With Inventory Turnover
Template 3
Provide a snapshot of important warehouse KPIs to make the inventory management process smoother and rewarding. It presents an outline of several KPIs, be it perfect order rate, cost of carrying etc, ultimately leading to the development of a more equipped supply chain.
Download Warehouse KPIs Carrying Cost Of Inventory Backorder Rate Inventory Turnover
Template 4
Retailers can use this customer product dashboard PPT template to spot new trends and gain insights. It will be an asset for any industry enthusiast who downloads it. Therefore, grab it now to take better inventory decisions and make your business more profitable.
Download Consumer Products Dashboard With Inventory Turnover
3. Sales velocity or forecasted demand
Accurate demand planning and forecasting is a key part of running a business successfully. By keeping track of the product’s performance and selling power, you can avoid out-of-stock and over-stock situations. Thus, tightening up this metric will help in running leaner warehouses, with only those goods that sell well. This also reduces the unnecessary inventory costs and backorders while still bringing in many growth opportunities.
Template 1
If you are looking for ways to avoid monetary losses and improve upon your inventory management, this is a great template to get a hold of. It tracks and presents different metrics, thus helping you monitor the current demand for the products. It also aids the development of a good supply chain process, thereby increasing your productivity.
Download Demand Forecasting PowerPoint Presentation
Template 2
Proper demand forecasting is an important element in the production planning process. This template entails all the information that is needed to conduct this process smoothly and efficiently. It gives a vivid snapshot of viable points and figures that you can further use to conduct thorough discussions among the masses.
Download Supply Chain Management Demand Forecasting PowerPoint Presentation
Template 3
Support the production and distribution of your products and services using this complete deck. It acts as a great analytical tool that you can use to forecast and display important facts and figures. You can also use it to streamline your processes with its highly equipped and illustrative content.
Download Planning And Forecasting Of Supply Chain Management Complete Deck
Template 4
If punching in numbers manually makes you lose interest, then this is the right template to go for. It serves as a great analytical tool that you can use to provide a brief overview of market KPIs and their drivers. Not only is it versatile, but also makes the information highly receptive to any individual who views it.
Download Market Demand And Forecast Dashboard With Method Count
4. Customer satisfaction
This is a very important metric and can be measured in a number of ways. It can also be broken down across different metrics like the number of late orders, average order-to-delivery, and many more. Some companies also measure it using Net Promoter Score (NPS) to get direct answers.
Related Read: 20 Net Promoter Score Templates and Strategies To Overcome Entrepreneurial Challenges
Template 1
Gather and present a trail of quality feedbacks using this complete deck. This complete deck is great for both conventional and modern presentation styles as it has an adaptable layout. So check out this complete deck today and download it to make your customer journey smooth and effortless.
Download Customer Satisfaction Survey Feedback PowerPoint Presentation
Template 2
Select this customer feedback complete deck to understand and apply the results of micro-level services of individual users. It addresses all the challenges and discrepancies while presenting answers to macro-level questions that need your due attention.
Download Customer Satisfaction And Performance Metrics PowerPoint Presentation
Template 3
Customer retention is closely related to working and obtaining quality feedback. It also includes improving your products based on customer choices. You can deploy this complete deck to help you obtain constructive feedback. It monitors different variables that can be used to improve your inventories and make them more client-appropriate.
Download Customer Feedback Management PowerPoint Presentation
Template 4
Deploy this template to glean valuable insights into your customers. Choose this tool to ponder upon different questions related to your customers and also examine the critical metrics to make the results more satisfying. It comes in an editable and shareable format, so download it now!
Download Customer Satisfaction And Feedback PowerPoint Presentation
5. Order accuracy or perfect order performance
Are your goods reaching the right place at the right time? This is what this KPI tracks. The global marketplace is flooded with similar goods and services, so if you will not deliver, someone else will. Therefore, this metric is the core of doing business effectively.
Template 1
Optimal supply chain management is an important factor for any business. This template is one such instrument that you can use to yield incredible long-term and fruitful results owing to its illustrative properties. This will also help scale your business to newer heights.
Download Supply Chain Management KPI Dashboard
Template 2
This is a great illustrative set for warehouse managers to take advantage of. They can use it to provide an instant overview of the facility and whether the goals are being met or not. It highlights various KPIs that are Excel-linked and editable as well.
Download Warehouse KPIs Shipping Receiving Storage Order Picking Accuracy
Template 3
Leverage this PPT template to make apt forecasts about the order. It is presented in a graph format that you can use to provide visual cues to the viewers. Since this comes in an Excel-linked set, it accommodates all the necessary adjustments.
Download Forecast Accuracy PPT Infographics
Template 4
This is another dashboard template that you can deploy for monitoring your orders. It shows a variety of KPIs and their performance that you can adapt to your individual settings. Such templates act as a trailblazer for retailers. So download it now!
Download KPI Dashboard For Uninterrupted Orders Forecast Accuracy PowerPoint Slide
6. Inventory carrying cost
This metric measures the incurred costs of unsold inventory. It includes several aspects like cost of damaged products, storage space costs, insurance, and labor cost. Along with inventory turnover rate, this metric can also help you fine-tune the stock levels and create a priority list.
In order to reduce this cost, designate a reorder point in the inventory management system.
Template 1
Warehouse managers can deploy this real-time analytical tool to display various KPIs. It majorly targets the cost of carrying, out-of-stock items, units per transaction, and other metrics, that you can modify as per your needs. Hence, without any further ado, download this template now.
Download Warehouse KPIs Transaction Out Of Stock Inventory Return Carry Cost
Template 2
If you want to make a comparison between inventory turnover and annual carry cost, then this template is the right fit for you. Our researchers have already added quality stats to it, however, you can alter its content as per your liking. It contains ample space to make amendments. Therefore grab it now!
Download Availability KPI Inventory Turnover Annual Carry Cost
Template 3
This is another informative set for warehouse managers to showcase their stats. Use it to judge whether your factor is meeting its goals or not. Thus taking viable and profitable decisions along the way. It will also aid in managing inventories without any unnecessary wastage.
Download Warehouse KPIsBackorder Rate Order Lead Time Inventory Accuracy
Template 4
You can use this template to showcase and dispense information on various types of inventory costs and what impact they have on the management process. These may include the cost of placing an order, set up cost, cost of carrying stock, and several others. Each of these can be adapted as per your needs and requirements.
Download Different Types Of Asset Inventory Cost
7. Sell-through rate
This is where the analysis gets bigger and better. With this metric, you can compare the inventory received by the supplier against the one that has been sold to the end consumer. Therefore, it can be used to evaluate how the products are doing over a month, year, and so on.
Template 1
This is a real-time analytical tool that you can use to measure the amount of goods sold in a month. You can also use the stats to make a comparison between the sales and inventory using Excel-linked diagrams and charts.
Download Sell Through Analysis Dashboard PPT
Template 2
Present a high-level overview of inventory and product sales using this dashboard template. It taps a very important inventory management KPI. Therefore, it can be used for monitoring and reaching sales goals through detailed analysis and evaluation.
Download Sell Through Calculation Diagram Sample
Template 3
This is a sales dashboard that can be used to display important KPIs and discuss them with c-level executives and managers for exercising effective control. It Is also a great template to use in conjunction with any presentation bundle, owing to its editable properties.
Download Inventory KPI For Sell Through Presentation
Template 4
Gauge various important retail inventory management KPIs using this informative set. This is a single slide showing various metrics, be it average sales review, customer retention, etc. This is a great template for any industry to deploy in their presentations.
Download Retail KPI Metrics Showing Average Sales And Sell Through Rate PPT
8. Rate of return
This is an important metric that evaluates the percentage of orders returned by the customers and the ones that need to be restocked. It is also important to know the reason behind the return so that the essential problems can be addressed and the supply chain can be improvised. This also helps in identifying the key trends and additional actions needed to meet them.
Template 1
If you are looking for a good dashboard to manage your retail inventory, then this is a great template to download. It provides a snapshot of several KPIs that can be monitored and updated from time to time. Thus, it helps you manage and procure your stocks in the best possible manner.
Download Retail Store Inventory KPI With Product Sale And Return
Template 2
This is another template that taps in the rate of return to help you manage your inventories well. Retailers can use it for monitoring, analyzing, and thereby improving the supply chain process by addressing all the major inventory management KPIs and their performance. Since it comes in a tabular format, it is very easy to interpret.
Download Inventory KPIs PowerPoint Slide Design
Template 3
This inventory management KPI template enables functional and visual interpretation of data. You can use it to monitor critical aspects of your supply chain performance and derive accurate results over time. Not only is this template flexible, but also highly responsive to any business setting.
Download Supply Chain Metrics And KPI Diagram Sample Presentation
Template 4
This dashboard design can be used to glean invaluable insights into various KPIs like defect density, rate of return, and more. It shows everything in a graphical format that you can alter and modify. It is also Excel-linked making it adaptable to every business and user setting.
Download Manufacturing KPI Dashboard Showing Defect Density And Rate Of Return
9. Order timeliness
This metric includes:
- On-time, ready to ship: appraises the number of orders that are fully packed with the necessary shipping documents, and are ready to be shipped to the end-user.
- On-time shipment: calculates the number of orders that meet the shipping deadlines
- On the time delivery: measures the orders that are delivered on time to the customer. This metric overlaps with the order accuracy KPI as it includes every aspect of an accurate order.
Meeting all these three metrics ensures maximum efficiency, customer satisfaction, and retention. It also helps in reducing expenditure on consolation, correction, etc.
Template 1
This is a real-time analytical tool that you can use to showcase KPIs concerning transportation, warehouse, and overall supply chain management. Used it to visualize and interpret information, all thanks to its illustrative properties.
Download Logistics Dashboard Showing Perfect Order Rate And On Time Shipments
Template 2
If optimizing your logistics is an area of concern for you, then this dashboard can help make things smooth and effortless. Use it to discuss the status of various transportation KPIs and the facts and figures related to them. With creative icons, this is a great template for retailers to download and use.
DownloadTransportation KPI Dashboard Showing Cost And On Time Final Delivery
Template 3
Track, visualize, and present inventory and logistics processes efficiently using this single slide. You can also use it to monitor as well as display all the important stats about the order such as overdue, delivery on time, the total number of orders, and many more. Yes, all this and a lot more with this single layout.
Download Inventory And Logistics Order And Delivery On Time Dashboards
Template 4
Get an overview of various inventory management KPIs using this template. It caters to the order timeliness KPI and its corresponding metrics, thus improving your inventories and supply chain as well.
Download Inventory Delivery On Time Dashboards PPT
10. Supplier KPIs
A well-structured supply chain is a company’s biggest asset. Using supplier KPIs and evaluating your vendors’ reliability, compliance and performance can help in refining your supply chain. It will also help in mitigating waste generation, costly errors, and discrepancies, thereby improving the overall product quality and order cycle times.
Template 1
Gauge and address various supplier KPIs using this complete deck. This serves as a great tool to manage your inventories by selecting the right supplier and avoiding any challenges along the way. It is also easily adaptable to any setting. Therefore, grab this inventory management KPI template now!
Download Supplier Evaluation PowerPoint Presentation
Template 2
Shed light on the top vendor and inventory management KPIs such as delivery time, availability, lead time, and many more using this set. It not only gives you a vivid snapshot of viable facts and figures but also helps you choose the right suppliers and address important challenges.
Download Vendor KPI Dashboard Showing Defect Rate On-Time Suppliers And Lead Time
Template 3
This is another vendor KPI dashboard showing a different set of metrics. You can either put it to use as it is or alter its content to fit your business perspective. Not only is it easily adaptable but is also an informative layout to address all your vendor selection issues.
Download Vendor KPI Dashboard Showing Supplier Compliance Stats And Procurement Cycle Time
Template 4
Drive continuous improvement in your supply chain model using this dashboard template. It highlights all the major KPIs that one should track and monitor, such as supplier compliance, average procurement cycle time, rate of contract, etc. Leverage all these stats and inventory management KPIs to make the right decision at the right time.
Download Supply Chain Management KPI Dashboard Showing Supplier Compliance Stats
To summarize
The list of 10 inventory management KPIs might seem daunting to you, but if chosen and implemented for your business, they will act as a great motivator for your company to flourish. If you are new to this, consider downloading the real-time example templates shown above, and start by monitoring inventory turnover - a relatively simple metric yet the most powerful one on the block. Time to transform your business into a highly productive machine. Get set, go!
