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The manage this level of stocks and know how to optimize the supply chain, you have to integrate many performance indicators. Each KPI helps to see more clearly the amount of stock, its value or its immobilization duration. At the same time, you also have to study certain specific indicators of customer orders and delivery times to successfully estimate the stocks that the company must have. What is an inventory KPI? An inventory KPI helps you control the entry and exit of products and the availability of inventory stocks. This information facilitates decision making to improve logistics planning and stock control bas on actual warehouse performance.

Proper control of these

Indicators increases the productivity and efficiency of the facility. Warehouse management is often digitiz to turn this data into information and have automat data entry for all operations that Luxembourg Business Email List take place in the warehouse. It also allows organizing and structuring the information so that it is visible and useful for the warehouse manager. Examples of inventory KPIs Although inventory control is essential for companies that manufacture and/or sell products, they also represent a significant cost. To calculate it, it is necessary to have a large number of data, among which are, for example, the cost of provisioning.

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The transport of the products

The rent or amortization of the warehouse, the insurance, the personnel costs or the tool-relat costs (inventory management software, purchase and maintenance of handling DP Leads equipment, consumables, etc.). But this cost is not really a performance indicator, because it is very global and not ti to other key elements. For this reason, various KPIs must also be taken into account to have more complete information on inventory costs, for example: inventory kpis Stock retention rate This is calculat by dividing the cost of storage by the average value of the stock, over a given period (often a year). Provides a percentage of what a given inventory value costs the company.