Tracking Your Key Inventory Metrics


An old industrial engineering axiom states that “what isn’t measured can’t be improved”.

From an inventory perspective, the metrics are the same for online sales as for catalogs, although the forecasting system requirements for Internet promotions may be different from those for catalog inventory.

The metrics include:

  1. Top-line and bottom-line growth
  2. Maintained Gross Margin
  3. Initial customer order fill rate
  4. Final fill rate/returns/cancellations
  5. Gross Margin Return On Investment (GMROI)
  6. Turnover
  7. Cost of Backorders
  8. Age of Inventory
  9. Measures of Overstock
  10. Write-Downs as a percentage of costs

Key metrics for your stores would include:

  1. Top-line and Bottom-line growth
  2. Comparable-store Sales (year over year)
  3. Maintained Gross Margin
  4. Turnover
  5. GMROI
  6. Weeks of Supply
  7. Markdowns/Margin loss from write-downs
  8. Age of Inventory
  9. Sell-Through percent
  10. Stock-to-Sales ratios

Tracking the above metrics should help you gain a foothold of your market, provided you make adjustments that reduce overhead and expand revenue simultaneously. Coordinating such concerns requires a comprehensive accounting and inventory management solution; your best choice for both price and features is SIMMS 2013.

Visit or email sales@kcsic.a today for more information.