When it comes to data, nothing is more important than ensuring its accessibility and accuracy. Without this, companies cannot know what is working and what isn’t and identify the top inventory management KPIs to drive business.

“According to the Aberdeen Group, organizations that analyze their KPIs outperform their competitors, gaining 10% faster decision-making time and 9% increased profitability.”

What are the key performance indicators (KPIs) for inventory management? These are essential metrics that guide decision-making regarding stock levels and inventory operations. KPIs provide valuable insights into areas such as storage efficiency, product turnover, process effectiveness, and associated costs. By leveraging KPIs effectively, inventory management challenges—such as productivity bottlenecks—can be proactively addressed. Investing in mobile inventory software with integrated KPI-tracking features, like those offered by RFgen, empowers warehouse managers to monitor both inbound and outbound inventory flows, as well as employee performance, without the need for a costly enterprise-level warehouse management system.

Some KPIs that warehouse managers focus on are:

• Time to receive – the average time it takes to receive and process new shipments.
• Put away time – how long it takes to transport goods from the receiving area to the correct storage area on the shelves or warehouse racks.
• Put away Accuracy – the percentage of items placed in the correct location after being received.
• Order picking time – the time it takes to pick items for orders. Managers should reduce the amount of time it takes to pick items to achieve faster order fulfillment and improve customer satisfaction.
• Inventory accuracy – ensuring that the inventory levels on the shelves match the accuracy of a company’s inventory data and system.
• Inventory write-off rate – tracking of the percentage of write-offs because of spoilage (food), damage or theft.
• Order lead time – the time between a customer’s order and the fulfillment of that order.
• Order cycle time – the average time taken to ship an order from the time it is placed.

By closely monitoring KPIs, companies can create a benchmark for themselves and keep pace with their peers. This enables them to gain efficiency and a competitive advantage.

Pragmatyxs’ work with manufacturers helps them achieve success through accuracy and effectiveness. The label is your product’s identity through the supply chain and is an important driver for meeting business expansion needs, improving customer responsiveness, and enhancing overall efficiency.