An inventory scorecard is a comprehensive data-based tool used to evaluate a company’s inventory performance. It should provide an objective assessment of the effectiveness and efficiency of inventory management practices as well as tangible recommendations for improvement. Inventory scorecards provide a powerful visual representation of key metrics, such as inventory turnover rate, weeks’ supply of inventory, excess and obsolete stock, order fill rate, and backorders. By using these metrics, businesses can quickly identify trends in their operations and understand how any changes made are impacting their bottom line. With an accurate inventory scorecard in hand, companies are better equipped to make informed decisions about their inventory and optimize their stock levels to maximize profit.