Shopify store owners know that keeping the right products in stock is vital. You need to track key inventory metrics using inventory management KPIs (Key Performance Indicators) to do that effectively. In this article, we’ll explain these KPIs, why they matter, and how using the right tools (like Shopify Reports by Mipler) makes tracking them easier.
What is a KPI in inventory management
A KPI in inventory management is a measurable metric that reflects how well your stock KPI inventory control is working. In other words, it’s a KPI for inventory management – e.g., how quickly you sell through stock or how often you run out. These inventory KPIs provide quantifiable insight (such as an inventory turnover rate or a stockout percentage) so you can gauge efficiency and spot issues. In essence, each KPI inventory that managers track targets a specific aspect of performance.
Why KPIs are important for inventory management
Inventory KPIs turn raw data into actionable insights. By monitoring KPIs for inventory management, you can identify problems like overstock or frequent stockouts. For instance, a low inventory turnover may signal that you’re carrying too much stock or slow-selling items, while a high stockout rate means you’re frequently running out of popular products. Tracking these indicators helps you balance stock levels and reduce holding costs. Even key performance indicators for warehouse management (like KPI inventory accuracy in storage) feed into better stock control by ensuring operations run smoothly.
How Can Inventory Planner and Other Inventory Management Tools Help
Inventory management tools nowadays provide an automated display of key performance indicators like KPI planners do. The system displays real-time stock levels, sales velocity, and how well your current inventory will last without a manual audit. The tools shorten the time spent on spreadsheet tasks, which creates time for responding to generated insights. The software platform Mipler offers complete Shopify Inventory Reports, which include dashboards and reports to allow you to react quickly. Shopify Inventory Planner by Mipler predicts product inventory duration before recommending ideal reordering amounts.
The custom report builder lets you choose and filter the exact inventory metrics you need, tailoring KPI tracking to your business.
How to choose inventory KPIs to track
Choosing which KPIs to track depends on your business goals and challenges. Focus on the metrics that matter most to your business. For example, if stockouts are a frequent issue, track your stockout rate or in-stock percentage. If you suspect you carry too much inventory, monitor your inventory turnover or days of supply. Even a warehouse manager should include metrics like inventory accuracy as a KPI of inventory management. Pick a small set of KPIs that together give you a clear view of inventory health.
Most Valuable Inventory KPIs to Track
While every business is unique, here are some particularly valuable inventory management KPIs that most Shopify stores should monitor:
- Inventory Turnover Ratio – How many times you sell through and replace your stock in a given period. A higher turnover indicates fast-selling stock and efficient use of stock, while low turnover suggests overstock.
- Stockout Rate – How often an item is out of stock when customers want to buy it (lower is better). This goes hand-in-hand with your in-stock rate (product availability). Minimizing stockouts means recapturing sales that would otherwise be lost.
- Days of Inventory – The average number of days your current stock will last at the current sales pace (also called days of supply). A high number indicates excess stock sitting too long, whereas a very low number warns you might run out soon.
- Dead Stock – The portion of inventory that hasn’t sold at all in a long time (e.g., aging stock). Dead stock ties up capital and warehouse space. Identifying dead stock prompts you to mark down or remove those items.
Managing Inventory KPIs with Mipler
Mipler’s Shopify reporting solution is built to make inventory KPI tracking easy and flexible with an inventory KPI dashboard. It provides ready-to-use reports for key inventory data like stock on hand, inventory history, low-stock items, and more.
You can customize any report – filter by any parameter or add custom calculations – to focus on the KPIs inventory management needs for your store. You can even schedule automatic email reports to stay up-to-date. With all your inventory metrics in one dashboard, Mipler essentially acts as an automated KPI planner for your stock.
What sets Mipler apart is its Shopify-specific focus. It integrates with your store data and leverages it to forecast demand and recommend reorders. Unlike generic inventory systems, Mipler’s Shopify Inventory Reports are tailored to e-commerce needs, helping you avoid stock problems and optimize turnover. In short, Mipler is the best solution for Shopify merchants to manage inventory KPIs effectively.
