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Stock Turnover metrics and KPIs

What are Stock Turnover metrics?

Crafting the perfect Stock Turnover metrics can feel overwhelming, particularly when you're juggling daily responsibilities. That's why we've put together a collection of examples to spark your inspiration.

Copy these examples into your preferred app, or you can also use Tability to keep yourself accountable.

Find Stock Turnover 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 Stock Turnover metrics and KPIs

Metrics for Updated Inventory of Spare Parts

  • 1. Inventory Accuracy Rate

    The percentage of inventory records that are accurate when compared to physical counts

    What good looks like for this metric: 95% or higher

    Ideas to improve this metric
    • Implement regular cycle counts
    • Utilise barcode/RFID systems
    • Conduct thorough training for staff
    • Review and update inventory records regularly
    • Analyse discrepancies and correct processes

  • 2. Stock Turnover Rate

    The number of times inventory is sold or used in a time period compared to the average inventory

    What good looks like for this metric: 4 to 6 times per year

    Ideas to improve this metric
    • Adjust reorder levels and frequency
    • Monitor sales and usage trends
    • Identify slow-moving items and clear them
    • Negotiate with suppliers for optimal order quantities
    • Integrate demand forecasting tools

  • 3. Backorder Rate

    The percentage of customer orders that cannot be filled at the scheduled time due to lack of inventory

    What good looks like for this metric: Less than 10%

    Ideas to improve this metric
    • Improve demand forecasting accuracy
    • Increase safety stock for critical items
    • Collaborate with suppliers on lead times
    • Enhance order fulfilment processes
    • Utilise data analytics for better insights

  • 4. Days of Inventory on Hand (DOH)

    The average number of days that inventory is held before it is sold or used

    What good looks like for this metric: 45 to 60 days

    Ideas to improve this metric
    • Optimise inventory mix based on demand
    • Implement just-in-time ordering
    • Improve marketing strategies to boost sales
    • Utilise warehouse space efficiently
    • Develop partnerships with reliable suppliers

  • 5. Carrying Cost of Inventory

    The total cost of holding onto inventory, typically a percentage of total inventory costs

    What good looks like for this metric: 20% to 30% of inventory value

    Ideas to improve this metric
    • Reduce excess inventory levels
    • Improve inventory turnover
    • Negotiate better terms with suppliers
    • Utilise technology to monitor costs closely
    • Enhance inventory flow and minimise holding time
inventory-accuracystock-turnoverinventory-managersupply-chain-analystoperations-teamlogistics-team
Implement these metrics

Tracking your Stock Turnover 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.

Tability Insights DashboardTability's check-ins will save you hours and increase transparency

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:

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