Inventory KPIs are measurable indicators used to monitor how well inventory is controlled, available, accurate, and moving through a manufacturing operation. They help describe the performance of raw materials, work in process, finished goods, spare parts, or other controlled stock.
Common inventory KPIs include inventory accuracy, cycle count variance, inventory turns, days on hand, stockout rate, excess and obsolete inventory, WIP levels, and material availability against production demand. In industrial systems, these measures are often calculated from ERP, MES, WMS, planning, and shop floor transaction data.
Inventory KPIs are not the same as inventory records themselves. A count, receipt, issue, or lot balance is source data; the KPI is the defined measure derived from that data. Clear definitions matter because the same label can vary by site, system, product family, or planning model.
In regulated or quality-sensitive manufacturing, inventory KPIs may also be used alongside traceability, lot control, serial control, material status, and nonconformance processes. They indicate operational performance but do not by themselves prove compliance, quality, or material suitability.