Key Performance Indicators (KPIs) are measurable values that demonstrate how effectively you’re achieving your key business objectives. A dashboard brings those together in one place so you can see how well you’re performing at a glance.
The KPIs you set to measure your supply chain and inventory performance are integral to the success of your business. If you’re unsure whether to use your On Time In Full, order fill rate, stock turns, stock age or any of the hundreds of others, you’ve come to the right place. With over 20 years of experience in inventory management best practices, we know a thing or two about measuring stock performance.
With so many KPIs to choose from when measuring inventory management ‘success’, where do you start?
The most important are those that show how well you’re optimizing your inventory. Why? Stockouts and excess stock cause a wealth of problems, from financial constraints to lost sales and dented profitability.
By focusing on these six fundamental inventory KPIs, you can optimize your inventory levels and improve stock availability, ultimately improving supply chain efficiency so you’re meeting orders OTIF.
Setting and tracking these KPIs is easy with an inventory optimization tool like EazyStock. The software does all the hard work, using complex algorithms to provide statistically accurate forecasts and targets. It then uses this data to set replenishment parameters and generate orders, constantly focusing on meeting demand while holding the lowest possible stock levels.
Using software to automate setting and tracking KPIs also saves valuable time and resources, which enables inventory management teams to be more strategic and concentrate on value-adding activities.
Constantly monitoring your KPIs puts a wealth of data at your fingertips to adjust processes and make informed decisions. These will keep your business operationally efficient and financially better off.
EazyStock’s KPI dashboard provides complete visibility across your entire stock portfolio, including multiple locations when necessary, putting you in total control of your inventory.
The dashboard is fully customizable, so you can quickly and easily see the information you want when you need it.
Armed with a wealth of inventory KPIs, you and your team will be empowered to make informed inventory management and purchasing decisions that optimize stock levels and improve availability and cash flow.
EazyStock keeps an audit of every decision you make and every order recommendation generated, allowing total control and visibility of stock management processes and decisions.
You can drill down for the detail on each stock item, make changes and refresh the data as often as you like.
There’s never enough time in the day, so EazyStock helps you focus resources on inventory items that need the most attention. This could be items at risk of running out, forecasts with demand outliers, or items reaching the end of their product life cycle.
You can set up regular alerts for items that need consideration and input, which makes it easier to spot and mitigate risks. Plus, you’ll have more time to deal with suppliers, manage customers and look at the bigger picture.
Did you know the health of your stock reflects the overall health of your business? Poor stock health often means you’ve invested in the wrong stock, leading to stock-outs of some items and piles of excess stock of others. To minimize capital investment and keep balance sheets healthy, it’s critical to keep track of stock and run regular reports to ensure you don’t have too much or too little.
Let’s start with three simple questions:
If you didn’t answer yes, yes, and no, let’s talk so we can get you back on track.