What are Inventory Management metrics? Finding the right Inventory Management 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 Management 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 Management metrics and KPIs 1. Inventory Turnover Ratio Measures how often inventory is sold and replaced over a period. Calculated by dividing cost of goods sold by average inventory
What good looks like for this metric: 2 to 4 times per year
Ideas to improve this metric Analyse inventory levels regularly Offer discounts on slow-moving products Optimize supply chain processes Increase product visibility through promotions Bundle products to increase sales 2. Sell-Through Rate The percentage of inventory sold compared to the amount of inventory received. Calculated by dividing units sold by the initial inventory received
What good looks like for this metric: 80% or higher
Ideas to improve this metric Enhance marketing efforts Rotate inventory displays regularly Improve sales staff training Utilize customer feedback for improvements Focus promotions on best-selling products 3. Gross Margin Return On Investment (GMROI) Measures the profit a company makes on its inventory investment. Calculated by dividing gross margin by average inventory cost
What good looks like for this metric: $2 or higher
Ideas to improve this metric Negotiate better terms with suppliers Improve pricing strategies Reduce inventory holding costs Focus on high-margin products Limit discounting on high-margin products 4. Days Sales Of Inventory (DSI) Indicates the average time in days that a company takes to turn its inventory into sales. Lower values are better
What good looks like for this metric: 30 to 60 days
Ideas to improve this metric Improve demand forecasting Implement automated inventory management systems Enhance supplier relationships Streamline supply chain processes Conduct regular inventory audits 5. Customer Feedback And Satisfaction Score Measure of customer satisfaction with the existing product line, usually through surveys or reviews
What good looks like for this metric: 4 out of 5 or higher
Ideas to improve this metric Actively solicit customer feedback Enhance product quality based on feedback Implement a customer loyalty program Improve customer service experiences Address any negative feedback promptly
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1. Conversion Rate The percentage of visitors who purchase a product after visiting the best sellers section
What good looks like for this metric: 2-5%
Ideas to improve this metric Enhance product descriptions Provide clear calls to action Use high-quality images Offer competitive pricing Simplify checkout process 2. Average Order Value The average amount spent each time a customer places an order from best sellers
What good looks like for this metric: $50-$100
Ideas to improve this metric Include product bundling discounts Highlight complimentary products Provide free shipping thresholds Promote limited-time offers Suggest upsells and cross-sells 3. Customer Engagement Rate The level of customer interaction with best seller listings, measured by clicks, shares, or comments
What good looks like for this metric: 20-30%
Ideas to improve this metric Utilise engaging social proof Incorporate interactive elements Use compelling ad copy Personalise content recommendations Ensure mobile-friendly design 4. Stock Turnover Ratio The rate at which inventory of best sellers is sold and replaced over a period of time
What good looks like for this metric: 5-7
Ideas to improve this metric Optimise inventory management Predict demand trends accurately Accelerate restocking processes Enhance supplier relationships Increase sales through on-site promotions 5. Customer Satisfaction Score A measure of how satisfied customers are with their shopping experience of best sellers
What good looks like for this metric: 70-85%
Ideas to improve this metric Gather regular feedback Enhance customer support Offer product quality guarantees Create user-friendly navigation Resolve complaints promptly
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Tracking your Inventory Management metrics Having a plan is one thing, sticking to it is another.
Setting good strategies is only the first challenge. The hard part is to avoid distractions and make sure that you commit to the plan. A simple weekly ritual will greatly increase the chances of success.
A tool like Tability can also help you by combining AI and goal-setting to keep you on track.
More metrics recently published We have more examples to help you below.
Planning resources OKRs are a great way to translate strategies into measurable goals. Here are a list of resources to help you adopt the OKR framework:
Tability's check-ins will save you hours and increase transparency
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