What are the top 5 inventory control metrics for retail operations?

由人工智能和领英社区提供技术支持

Inventory control is a crucial aspect of retail operations, as it affects customer satisfaction, cash flow, profitability, and compliance. To measure and improve your inventory performance, you need to track and analyze some key metrics that reflect how well you manage your stock levels, replenishment, turnover, accuracy, and shrinkage. In this article, we will discuss what are the top 5 inventory control metrics for retail operations and how to calculate and use them to optimize your inventory management.

此文章中的业界达人

由社区从 5 条内容中精选。了解更多

Edwin Goloumian

Logistics Operations Supervisor at GIG || Logistics and Supply Chain Professional
Jonathan Lucas Alcivar

Operations Manager specializing in Lean Six Sigma and Cost Reduction

1 Inventory turnover ratio

The inventory turnover ratio (ITR) is the number of times you sell and replace your inventory in a given period, usually a year. It indicates how efficiently you use your capital to generate sales and how fast you move your products. A high ITR means you have high demand, low holding costs, and fresh inventory. A low ITR means you have excess stock, high carrying costs, and risk of obsolescence. To calculate your ITR, divide your cost of goods sold (COGS) by your average inventory value.

添加您的观点

Edwin Goloumian

Logistics Operations Supervisor at GIG || Logistics and Supply Chain Professional
举报内容
Here are some KPIs for better Inventory control in distribution centers: 1) Customer Order Fulfillment 2) Case Fill Rate 3) Stock Cover FG 4) Line Loading 5) Daily FG/BG Count (Product Variance/Loss) 6) Freshness of Inventory etc...

已翻译

赞
Gaurav Shandilya

Head of E-commerce @ Freight Systems | 24 Years Experience | Supply Chain Management
举报内容
Some of the top inventory control metrics for retail operations include: 1) Inventory Turnover Ratio: Measures how many times inventory is sold and replaced in a specific period. 2) Stock-Out Rate: Reflects the frequency or percentage of times products are unavailable when customers demand them. 3) Fill Rate: Indicates the percentage of customer demand fulfilled immediately from on-hand inventory without backorders or delays, influencing customer retention. 4) Days Sales of Inventory (DSI): Calculates the average number of days it takes to sell the current inventory. 5) Gross Margin Return on Investment (GMROI): Evaluates how effectively inventory is managed by correlating the gross margin generated with the investment in inventory.

已翻译

赞

2 Days inventory outstanding

The days inventory outstanding (DIO) is the number of days it takes you to sell your inventory on average. It measures how long your inventory sits in your warehouse or store before it is sold. A low DIO means you have a short inventory cycle, high liquidity, and low storage costs. A high DIO means you have a long inventory cycle, low liquidity, and high storage costs. To calculate your DIO, divide your average inventory value by your COGS and multiply by 365.

添加您的观点

3 Inventory accuracy

The inventory accuracy is the percentage of how closely your physical inventory matches your records in your inventory system. It reflects how well you maintain and update your inventory data and avoid discrepancies due to human errors, theft, damage, or misplacement. A high inventory accuracy means you have reliable information, better planning, and lower risk of stockouts or overstocking. A low inventory accuracy means you have unreliable information, poor planning, and higher risk of stockouts or overstocking. To calculate your inventory accuracy, divide the number of items that match your records by the total number of items counted and multiply by 100.

添加您的观点

Jonathan Lucas Alcivar

Operations Manager specializing in Lean Six Sigma and Cost Reduction
举报内容
Los controles para determinar la precision del inventario suelen tener una alta carga operativa, para minimizar esto, lo primero que se debe realizar es la estandarizacion de los procesos y ajustarlos a la necesidad de la operacion logistica, si este punto esta bien mapeado, los controles opertivos pueden drealizarse de una manera mensual y por muestreo lo que disminuye la operatividad y permite generar mejora continua.

已翻译

赞

4 Fill rate

The fill rate is the percentage of how often you fulfill customer orders from your available inventory without backorders or delays. It measures how well you meet customer expectations and demand with your current stock levels. A high fill rate means you have high customer satisfaction, loyalty, and retention. A low fill rate means you have low customer satisfaction, loyalty, and retention. To calculate your fill rate, divide the number of items shipped by the number of items ordered and multiply by 100.

添加您的观点

5 Shrinkage rate

The shrinkage rate is the percentage of how much your inventory decreases due to factors such as theft, damage, spoilage, or miscounting. It measures how much you lose from your inventory value and profit margin due to these causes. A low shrinkage rate means you have high inventory security, quality, and control. A high shrinkage rate means you have low inventory security, quality, and control. To calculate your shrinkage rate, subtract your physical inventory value from your book inventory value and divide by your book inventory value and multiply by 100.

添加您的观点

Jonathan Lucas Alcivar

Operations Manager specializing in Lean Six Sigma and Cost Reduction
举报内容
Es importante medir este indicador, sin embargo refuerzo la idea de tener procesos solidos que permitan controlar procesos antes de la perdia, da?o o conteo erroneo, la automatizacion de los controles es clave para disminuir carga opertiva y errores

已翻译

赞

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?

添加您的观点

Jonathan Lucas Alcivar

Operations Manager specializing in Lean Six Sigma and Cost Reduction
举报内容
Es importante contar con procesos fuertes y que evloucionen constantemente enfocados en la mejora continua, establecer Kpis que se adapten a la necesidad es fundamental y enfocarlos en lo prioritario aun mas

已翻译

赞

Retail Operations

+ 关注

给文章评分

我们借助人工智能创建了此文章。您认为这篇文章怎么样？

很棒不太好

举报此文章

查看全部

What are the top 5 inventory control metrics for retail operations?

1

2

3

4

5

6

1 Inventory turnover ratio

2 Days inventory outstanding

3 Inventory accuracy

4 Fill rate

5 Shrinkage rate

6 Here’s what else to consider

Retail Operations

给文章评分

感谢您的反馈

更多Retail Operations相关文章

更多相关阅读内容