Metrics and KPIs
Metrics turn warehouse and stock data into numbers that can be compared over time. Inventory turnover and days of inventory describe the same thing from two sides, how quickly stock sells through. Stock accuracy shows how far the records can be trusted, and lead time measures how long replenishment takes.
A metric is only useful when it is counted the same way each time, so each definition states what is measured. Lead time also feeds the planning terms in Inventory and stock control, safety stock and reorder point among them.
Terms in this topic
Days of inventory — stock cover
Days of inventory explained simply: how many days your stock would last at today's sales rate. Two versions, and a worked example.
Inventory turnover
Inventory turnover explained simply: how many times a year you sell through your stock, how to work it out and what a low number tells you.
Lead time
Lead time explained simply: the time from placing a supplier order to having the goods ready to sell. Why to measure the real figure, with an example.
Stock accuracy — inventory record accuracy
Stock accuracy explained simply: how often the number in your system matches the number on the shelf. How to measure it, with a worked example.
Also relevant to this topic
Other topics
- Inventory and stock controlKnowing what you hold and where: SKUs, lots, stock takes, safety stock.23 terms
- Inbound: receiving and putawayFrom dock to shelf: receiving, putaway, slotting and cross-docking.6 terms
- Outbound: picking, packing and shippingFrom order to carrier: picking methods, packing, cut-off times, despatch.17 terms
- Warehouse automation (MHE)Machines that store, move and sort goods, and the technologies that guide the work.19 terms
- Systems and integrationWMS, OMS, WCS, WES, EDI and how warehouse software connects.10 terms
- Retail and supply-chain standardsGS1 identifiers, barcodes and the messages trading partners exchange.9 terms
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Book a demo and we will walk your warehouse and order flow end to end — inbound, storage, picking, shipping, returns — and tell you honestly what BizBloqs would change.
Two questions about your own operation
How many of your articles sit in a pick location they empty less than once a month?
Part one: Laying out a warehouse does not start with the racking
After your last integration, how many systems hold a stock quantity for the same item? Name them.