![]() ![]() We recommend identifying the key functions of your business to determine the best inventory performance metrics to adopt for your business. A different metric, such as sell-through rate, could give you a better sense of the percentage of units sold, compared to available units. However, let’s say you want to understand the availability of your items. If you are coming up with a KPI strategy from scratch, it can be daunting to know exactly which inventory management metrics to assess for your business.įor example, if you own a hardware store, you might first consider measuring whether you have enough stock items on hand to meet the needs of customers. It’s important to measure how your business operates, in order to create more transparency into profits over time. Determining Inventory Performance Metrics to Monitor ![]() Optimizing inventory levels keeps a healthy balance between managing costs and maintaining enough inventory to sustain operations. While having sufficient stock on hand is crucial to keep your supply chain moving smoothly, purchasing and storing items generate also generate costs. With valuable insight from inventory performance metrics, businesses are able to improve cash flow, reduce operating costs, and increase customer satisfaction.Ĭalculating how fast the inventory is moving provides valuable insight into how efficiently it is managed. Utilizing key performance indicators (KPIs) throughout inventory control systems helps drive more effective decisions and strategies. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |