KPIs for inventory management are metrics used to measure the performance of an organization’s inventory system. These metrics are used to identify areas of improvement and ensure that inventory is managed in an efficient and cost-effective manner. KPIs for inventory management can include a variety of metrics, such as inventory turnover rate, inventory accuracy, inventory availability, and inventory cost. Inventory turnover rate measures the rate at which inventory is sold or used in a given period of time. Inventory accuracy measures the accuracy of inventory records and helps identify any discrepancies between actual and recorded inventory levels. Inventory availability measures the ability of an organization to fulfill customer orders in a timely manner. Lastly, inventory cost measures the total cost of inventory, including purchasing, storage, and transportation costs. By measuring these KPIs, organizations can gain valuable insights into their inventory management system and make improvements to increase efficiency and reduce costs.
