Metrics that Matter: Inventory Effectiveness
JUNE 25, 2019
The effective use of a manufacturer’s inventory investment is an important determinant of the company’s success. It is critical to monitor inventory effectiveness using five key metrics: Expedited orders, inventory turns, obsolete inventory, safety stock and stockouts. Many organizations publish turns data by industry or SIC code to help gauge where you stand against others in your industry. Using Metrics to Measure the Health of the Business.