Inventory Management KPIs

Here are the main KPIs for the Inventory Management.  They are part of the Inventory Management Dashboard or Balanced Scorecard.

Please see the following table.

-> Recommended bibliography about inventory management KPIs

Activity Subject Calculation
Cost IHC Inventory Holding Cost Cost of the capital + Storage surfaces cost +Warehouse handling cost + Inventory depreciations
IHC as a % IHC ÷ Inventory value
IHC ÷ Gross sales
IMC Inventory Management Cost Ordering cost (or acquisition cost) + Holding cost IHC
IMC as a % IMC ÷ Inventory value
Value Inventory value evolution vs. Target
Average Inventory value
Warehouses Inventory level Total value of Inventory in warehouses
Branches Inventory level Total value of Inventory in branches
Total Inventory level Total value of Inventory
Cover / turnover Inventory cover (number of days of supply of inventory held) evolution vs. Target Average value of Inventory ÷ average daily consumption
Inventory turnover evolution vs. Target Annual consumption (past or projected according to the context) ÷ average Inventory
Low rotation and excess Inventory in excess Value of the Inventory in excess
Low rotation Inventory Value of the low rotation Inventory
Obsolescence Obsolescent Inventory Value of the obsolescent Inventory
Obsolescent Inventory as a % of the global Inventory value vs. target Obsolescent Inventory value ÷ global Inventory value
Shrinkage Shrinkage unknown reasons as % of COGS detailed by cause vs. Target Shrinkage for unknown reasons value ÷ COGS
Shrinkage known reasons as % of COGS detailed by cause vs. Target Shrinkage for known reasons value ÷ COGS
Shrinkage Total Shrinkage value ÷ COGS
Depreciation Depreciation as a % of Inventory value Depreciation value ÷ Inventory value
Annual inventory SKUs controled Number of controled SKUs ÷ Total number of SKUs in Inventory
Discrepancy as a % of the global inventory value vs. target Discrepancy value ÷ Inventory value
Permanent inventory SKUs controled Number of controled SKUs ÷ Total number of SKUs in Inventory
Discrepancy as a % of the global Inventory value % discrepancy ÷ global Inventory value
Availability Shortage as % of number of SKUs stored vs. target Number of SKUs in shortage ÷ total number of active SKUs stored
Quasi – shortage as % of number of articles stored vs. target Number of SKUs in quasi shortage ÷ total number of active SKUs stored
Missed sales evaluation vs. target Value of the potential lost sales evaluated through shortage valorization


Recommended bibliography