5 Inventory Metrics that Every Retailer Should Track
If you are running a retail business, exercising inventory control and efficientlymanaging inventory is of utmost importance to maintain the stability of your business. By knowing and looking after right inventory metrics, you can avoid both surplus and deficit in your warehouse which is cost effective. In this post, we are going to discuss top inventory metrics that you need to track as a retailer. Let’s get started: 1. Margin Return on Investment Gross margin return on investment or GMROI helps retailers to know what they are getting back in return in return for what they have spent. You measure the profit return you are getting the funds that you have put in your inventory. The formula of GMROI : gross returns/ average cost of inventory. While there are many other inventory ratios and functions, GMROI is one of the most crucial metric that retail owners track to optimize their inventory process. By calculating GMROI, retailers can find the proporti