What are the most important inventory data metrics to include in your visualizations?

1 Stock levels

Stock levels are the quantity of each item that you have on hand, in transit, or on order. They show you how much inventory you have available to meet customer demand, avoid stockouts, and optimize inventory turnover. You can visualize your stock levels by using bar charts, pie charts, or heat maps to compare different products, categories, locations, or time periods. You can also use color coding, alerts, or indicators to highlight low or high stock levels that need your attention.

2 Inventory turnover

Inventory turnover is the ratio of your cost of goods sold (COGS) to your average inventory value. It measures how efficiently you are selling and replenishing your inventory. A high inventory turnover indicates that you are moving your inventory quickly and avoiding excess or obsolete stock. A low inventory turnover indicates that you are holding too much inventory or facing low demand. You can visualize your inventory turnover by using line charts, area charts, or histograms to track your performance over time, across products, or against benchmarks. You can also use filters, sliders, or drill-downs to explore the factors that affect your inventory turnover.

3 Inventory accuracy

Inventory accuracy is the percentage of your physical inventory that matches your recorded inventory in your system. It reflects how reliable and up-to-date your inventory data is. A high inventory accuracy means that you have a clear and accurate picture of your inventory situation and can make informed decisions. A low inventory accuracy means that you have errors or discrepancies in your inventory records and may face problems such as stockouts, overstocking, or lost sales. You can visualize your inventory accuracy by using gauges, meters, or scorecards to show your current or target accuracy levels. You can also use scatter plots, box plots, or bubble charts to identify the sources or patterns of your inventory errors.

4 Inventory carrying costs

Inventory carrying costs are the expenses associated with holding and maintaining your inventory, such as storage, insurance, taxes, depreciation, obsolescence, and opportunity costs. They represent the trade-off between having enough inventory to meet customer demand and minimizing your inventory costs. A low inventory carrying cost means that you are managing your inventory efficiently and maximizing your profitability. A high inventory carrying cost means that you are wasting money and resources on unnecessary or unproductive inventory. You can visualize your inventory carrying costs by using stacked bar charts, waterfall charts, or treemaps to break down your cost components, compare different products, or allocate costs to different departments. You can also use sparklines, trend lines, or forecasts to monitor your cost trends or projections.

5 Inventory service level

Inventory service level is the percentage of customer orders that you can fulfill from your available inventory without delay. It measures how well you are meeting customer expectations and demand with your inventory. A high inventory service level means that you are delivering your products on time and satisfying your customers. A low inventory service level means that you are losing sales, damaging your reputation, or risking customer loyalty. You can visualize your inventory service level by using donut charts, funnel charts, or radar charts to show your order fulfillment rate, customer satisfaction rate, or performance across different segments or channels. You can also use dashboards, tables, or maps to display your order status, delivery time, or location.

Inventory data visualization can help you improve your inventory management and achieve your business goals. By choosing the right inventory data metrics and visualizations, you can gain valuable insights, make better decisions, and communicate your results more effectively. What other inventory data metrics do you use or recommend for your visualizations? Share your thoughts and experiences with us.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?