%201.svg){kind=small}
Latest posts
Download resources
Warehouse key figures: Definition & important aspects for buyers
.jpeg)
Warehouse key figures in a nutshell:
Warehouse KPIs are quantitative metrics for evaluating and controlling warehouse performance, such as inventory turnover, range or service level. They enable purchasing to optimize inventory effectively and provide an important decision-making basis for the procurement strategy.
Example: An automotive supplier improves its inventory turnover from 6 to 8 per year by monitoring its inventory key figures on a monthly basis and simultaneously reduces the average storage period from 60 to 45 days, resulting in cost savings of EUR 120,000 per year.
Contents
Warehouse key figures - an overview
What are inventory ratios?
Warehouse KPIs are measurable variables that provide information about the performance, efficiency and effectiveness of warehouse processes. They are used to quantify various aspects of warehousing, such as inventory turnover, storage costs and readiness to deliver. By systematically recording and evaluating these key figures, companies can assess the performance of their warehouse and identify optimization potential.
Core components of warehouse key figures
- Turnover rate: Number of times the average stock is sold or consumed in a given period.
- Storage duration: Average duration of goods in the warehouse, which indicates stock levels and possible excess stock.
- Degree of readiness to deliver: Percentage of orders that can be serviced immediately from the warehouse.
- Storage cost ratio: ratio of storage costs to the total value of the stored goods.
Significance for purchasing
Key stock figures are crucial for purchasing in order to optimally plan order quantities and times. They enable a well-founded determination of requirements and help to avoid excess stock or bottlenecks. By analyzing inventory indicators, buyers can create a basis for decision-making in supplier negotiations and ensure security of supply.
- Inventory optimization: Reduction of storage costs through coordinated order cycles.
- Security of supply: Ensuring product availability by monitoring stock levels.
- Cost control: Identification of potential savings by analyzing warehousing costs.
Whitepaper: Warehouse KPIs at a glance - optimization through effective measurement and analysis
Application of the turnover rate
The inventory turnover rate measures how often the average stock is sold or consumed within a certain period of time. It is a key tool for evaluating warehouse performance and managing stock levels efficiently.
Calculation example
Situation: A company has an annual cost of goods sold of €600,000 and holds an average stock of €150,000.
Calculation of the turnover rate:
Inventory turnover = cost of goods sold / average stock level
Turnover rate = 600,000 € / 150,000 € = 4
This means that the company's stock is completely turned over four times a year.
Interpretation:
A turnover rate of 4 indicates that the goods are sold or consumed every three months on average. The aim can be to increase this frequency in order to reduce storage costs and capital commitment.
Measures for improvement:
- Adjustment of order quantities and intervals
- Optimization of the sales forecast
- Closer cooperation with suppliers for faster delivery times
Evaluation and strategic findings
✓ Critical success factors
→ Precise inventory management: implementation of an accurate inventory management system for reliable inventory turnover figures
→ Dynamic ordering policy: flexible adjustment of order quantities based on turnover frequency and market conditions
→ Supplier integration: close coordination with suppliers for optimized delivery rhythms and reduced safety stocks
⚠ Challenges and limitations
→ Seasonal fluctuations: Consideration of fluctuations in demand when interpreting the turnover rate
→ Product complexity: Different turnover rates of different article groups make uniform strategies difficult
→ Service level balance: optimizing the turnover rate while ensuring delivery capability at the same time
Future trends and strategic implications:
"The integration of AI-supported forecasting models will revolutionize inventory optimization."
→ Predictive analytics for more precise demand forecasts
→ Automated inventory optimization through machine learning
→ Real-time monitoring of key handling figures
→ Digital twin concepts for inventory simulations
Conclusion on the warehouse key figure analysis
Warehouse key figures, in particular the inventory turnover rate, are indispensable control instruments for efficient inventory management. They enable a precise assessment of warehouse performance and form the basis for strategic decisions in purchasing. By systematically recording and analyzing these key figures, combined with modern technologies such as AI and predictive analytics, companies can continuously optimize their warehouse processes and reduce costs. The key to success lies in striking a balance between high inventory turnover rates and sufficient readiness to deliver.
