What are Inventory metrics? Finding the right Inventory metrics can be daunting, especially when you're busy working on your day-to-day tasks. This is why we've curated a list of examples for your inspiration.
Copy these examples into your preferred app, or you can also use Tability to keep yourself accountable.
Find Inventory metrics with AI While we have some examples available, it's likely that you'll have specific scenarios that aren't covered here. You can use our free AI metrics generator below to generate your own strategies.
Examples of Inventory metrics and KPIs 1. Inventory Accuracy Rate Measures the percentage of inventory records that match the physical count
What good looks like for this metric: Typically around 95-99%
Ideas to improve this metric Implement regular cycle counts Enhance employee training programmes Utilise an automated inventory management system Conduct root cause analysis on discrepancies Improve data entry processes 2. Shrinkage Rate Quantifies the loss of inventory due to factors like theft, damage, or miscounting
What good looks like for this metric: Typically around 1-3%
Ideas to improve this metric Strengthen security measures Improve inventory handling practices Conduct regular audits Implement loss prevention policies Enhance employee accountability 3. Order Fulfilment Accuracy Tracks the percentage of orders correctly picked, packed, and shipped without mistakes
What good looks like for this metric: Typically around 95-99%
Ideas to improve this metric Enhance order verification processes Invest in pick-to-light or voice picking technology Regularly train order fulfilment staff Implement barcode scanning processes Regularly audit orders 4. Stockout Rate Indicates the percentage of items not available when needed
What good looks like for this metric: Typically below 5%
Ideas to improve this metric Optimise forecast and demand planning Improve supplier relationships Conduct regular stock level assessments Utilise just-in-time replenishment Implement safety stock levels 5. Turnover Rate Measures how quickly inventory is sold and replaced over a period
What good looks like for this metric: Varies by industry; generally higher is better
Ideas to improve this metric Enhance inventory management practices Conduct market trend analysis Optimise pricing strategies Improve demand forecasting accuracy Regularly review slow-moving inventory
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1. Cycle Counts Completed Per Day The number of cycle counts an employee completes each day
What good looks like for this metric: 10 cycle counts per day
Ideas to improve this metric Set daily cycle count targets Provide training to improve efficiency Use technology to speed up counting Monitor progress throughout the day Provide incentives for meeting targets 2. Average Time Per Cycle Count The average amount of time taken to complete a single cycle count
What good looks like for this metric: 45-60 minutes per cycle count
Ideas to improve this metric Standardise cycle counting procedures Identify and eliminate bottlenecks Utilise efficient tools and equipment Conduct regular employee training Review and optimise workflow processes 3. Accuracy of Cycle Counts The percentage of cycle counts that are completed without error
What good looks like for this metric: Above 95% accuracy
Ideas to improve this metric Double-check counts before submission Implement a verification process Conduct regular accuracy audits Provide detailed guidelines Offer corrective training where needed 4. Employee Attendance Rate The percentage of days employees are present for conducting cycle counts
What good looks like for this metric: 95%-100% attendance
Ideas to improve this metric Implement a clear attendance policy Provide flexible working schedules Recognise and reward consistent attendance Address attendance issues promptly Provide support for personal issues affecting attendance 5. Employee Productivity Rate The number of productive hours spent on cycle counts compared to the total hours available
What good looks like for this metric: 75%-85% productive hours
Ideas to improve this metric Track time spent on different tasks Use productivity management software Set clear daily goals Encourage regular breaks to maintain focus Identify and eliminate distractions
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Tracking your Inventory metrics Having a plan is one thing, sticking to it is another.
Don't fall into the set-and-forget trap. It is important to adopt a weekly check-in process to keep your strategy agile – otherwise this is nothing more than a reporting exercise.
A tool like Tability can also help you by combining AI and goal-setting to keep you on track.
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Tability's check-ins will save you hours and increase transparency
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