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Inventory Management Statistics – 30 Key Figures
- Efficient inventory management is paramount for any corporation’s effective operation, saving time, energy, and money.
- Stocks, as vital assets, require meticulous handling to enhance a company’s chances of success, emphasizing the importance of proper inventory management.
- Efficient inventory management streamlines supply chains, reducing disruptions and contributing to overall organizational success.
Any corporation needs structure to run effectively, especially regarding its stocks. Inventory management ensures efficiency which does not only save time and energy but also saves money.
Ineffective inventory management can cause significant problems for a company and may cause businesses to fail. Stocks are important company assets and therefore handling them with proper care and attention increases a company’s chances of success.
Don’t give yourself any room for failure. Find out in the rest of this article how to poise yourself for success!
30 Key Figures for Inventory Management
Inventory management is part of making sure the procurement process is a well-oiled machine. Here are some key figures about inventory management that you may want to know about.
1. Inventory accuracy in U.S. retail operations is 63%
It’s always a challenge to manage replenishment schedules effectively when there is a lack of proper inventory management. This leads to stockouts and overall negative customer experience. According to Myos, Inventory accuracy in U.S. retail operations is 63%.
2. Projected 10% to 12% reduction in logistics emissions by 2025
By implementing digital transformation initiatives, it is projected that between 10% to 12% of emissions from logistics activities could be reduced by 2025, says Myos.
This is important in Inventory management as it minimizes environmental impact when replenishing inventory or shipping out products to consumers.
3. Fixing understocking and overstocking reduces 10% of inventory costs
According to Myos addressing the issues of overstocking and understocking can help businesses achieve a significant 10% reduction in inventory costs.
Too much inventory can also be bad as it limits a company’s capital and ability to invest in new products, technologies, or marketing initiatives. Striking the right balance can keep companies growing and well-stocked throughout.
4. 43% of small businesses do not monitor their inventory
43%, a considerable number, of small businesses need to actively monitor their inventory, says Myos. 21% of small businesses even claim they have no stock. For those who engage in inventory tracking, however, it is the general approach to make use of accounting software.
5. 36% of supply chain professionals are optimizing inventory management
According to Myos, 36% of supply chain professionals are optimizing inventory management. This is to keep a harmonious balance between supply and demand. Supply chain professionals know the importance of having a well-stocked and efficient inventory.
6. 72% of retailers will transform their supply chain operations
According to Myos, 72% of retailers intend to transform their supply chain operations using real-time visibility through automation, sensors, and analytics. These new technologies will create a better and more efficient supply chain.
Sensors give retailers better visibility of their inventory in the supply chain by giving real-time data on product location, condition, and movement. Combined with analytics capabilities it creates more opportunities for retailers to make data-driven decisions.
7. WMS Market Poised to Reach USD 10.5 Billion by 2030
Warehouse Management System is a software solution that gives businesses visibility of their entire inventory. They can manage supply chain fulfillment operations from the distribution center to the store shelf.
According to Myos industry experts have been eyeing the WMS market as they anticipate a projected market size of around $10.5 billion by 2030.
8. The global market for WMS is estimated to have a CAGR of around 16% from 2022 to 2030
The Warehouse Management System is starting to live up to its name as it is experiencing robust growth in the global market. It is estimated to have a compound annual growth rate of around 16% from 2022 to 2030, according to Myos.
9. Approximately 73% of warehouses have plans to implement mobile inventory management solutions
New technologies wouldn’t be complete without a mobile component and this is true for new technologies in inventory management as well.
According to ValuTrack, approximately 73% of warehouses plan to implement mobile inventory management solutions. Imagine keeping track of your inventory all from the comfort of your mobile device!
10. 79% of companies with high-performing supply chains can surpass the average performance within their respective industries
It’s a no-brainer that efficiency is always a contributor to growth. Analysis shows that 79% of companies with a high-performing supply chain can achieve revenue growth beyond the average performance of their respective industries, as Myos reports.
11. 12% of companies become unprofitable once distribution costs are factored in
Distribution costs affect profitability and should not be overlooked. Logistics Bureau says that up to 12% of companies become unprofitable once distribution costs are factored in.
A company’s financial performance relies on several factors and none of them should be overlooked, no matter how small you think they may be.
12. The Global Supply Chain Industry has a market value of $15.85 Billion
According to Myos, the Global Supply Chain Industry has a market value of $15.85 Billion and is projected to continue its growth with a CAGR of 11.2% come 2027. In fact, according to, Future Market Insights, the supply chain management market revenue totaled $25.7 Billion for 2023.
13. Sea transportation accounts for over 80% of global trade in merchandise
International trade and the global economy heavily rely on sea transportation which is the foundation for transportation networks. Sea transportation accounts for more than 80% of the volume of international trade in goods, according to Myos.
14. 74% of businesses have experienced delays in shipments and much longer lead times
Capgemini reports that 74% of businesses have experienced delays in shipments and much longer lead times. Proper Inventory Management can make this headache go away and had it been done correctly, this 74% would either be significantly lower or nonexistent.
15. 2030 will see a 25% decrease in Europe’s vehicle-selling inventory from 280 million to 200 million vehicles
According to PwC Europe’s vehicle-selling inventory will drop from 280 million to 200 million vehicles, a 25% decrease, by the year 2030. This is mainly because of semiconductor shortages and the Russia-Ukraine war. Inventory management can make the best of this situation moving forward.
16. 48% of businesses are reevaluating their warehouse locations
BlueGrace Logistics reports that 48% of businesses are reevaluating their warehouse locations. This is due to the ever-shifting trade patterns which have resulted this time in changes in the US economy. Things like taxes, tariffs, and many more have changed the landscape yet again.
17. 64% of North American manufacturers support reshoring
According to Supply Chain Dive, it was discovered that 64% of North American manufacturers support reshoring.
Reshoring means moving production to the home nation of a business. This is done to gain better operational control as everything can be more direct and the supply chain runs more efficiently.
18. 54% of warehouses plan to expand the number of inventory stock-keeping units
For the next five years, 54% of warehouses plan to expand the number of inventory stock-keeping units, reports Founder Jar.
To meet consumer demands more businesses are expanding the product range that they stock. Now more than ever Inventory management is crucial due to these expansions.
19. Human error was reduced by 43.5% by using barcode technology
An astounding 43.5% of human error was reduced by using barcode technology, says FounderJar. This was done on medication at an academic medical center.
It is to be noted that this did not eliminate all the errors but it did significantly cut it down which proves the efficiency of new technologies in Inventory Management.
20. Only 22% of organizations have a proactive supply chain network
The pandemic showed a vital flaw in the supply chain of many organizations and this was that only 22% of them have a proactive supply chain network, according to FounderJar.
Having a proactive supply chain network means that the end-user can address demand or shifts in supply while they are still a threat and not a critical problem.
21. 62% of business finances are affected due to failure in inventory tracking
Lack of supply chain visibility and accuracy continues to plague businesses and corporations all around. Inventory Management is crucial as inventory visibility and accuracy are significant against the dangers of financial loss.
According to Supply Chain Dive, 62% of business finances are affected due to failure in inventory tracking.
22. Around 34% of retail businesses shipped an order late because they sold an out-of-stock product
Customer satisfaction goes down the drain as poor inventory visibility cripples a company’s ability to perform. According to Founder Jar, around 34% of retail businesses shipped an order late because they sold an out-of-stock product.
23. 67.4% of Inventory Managers use Microsoft Excel in Inventory Management
Microsoft Excel never seems to go out of style as 67.4% of Inventory Managers use Microsoft Excel in Inventory Management, according to Founder Jar. Furthermore, an astounding 75% of late majority managers use Excel to manage and do inventory control.
However, only around half of new investors use Excel since they are more set on using new tools and software that have more advanced methods of inventory control and management.
24. Around 17% of small businesses use inventory tracking software for their inventory
Founder Jar says that around 17% of small businesses use inventory tracking software for their inventory. There are a lot of these kinds of software and below is a short list of some of them.
25. AI-enabled supply chain management improves logistics costs by 15%, inventory levels by 35%, and service levels by 65%
Compared to slower-moving competitors AI-enabled supply chain management has improved logistics costs by 15%, inventory levels by 35%, and service levels by 65%, according to Netstock. This shows the power of AI in procurement.
26. Using integrated order processing for their inventory system can increase productivity by 25%
According to Webinarcare, using integrated order processing for their inventory system can increase productivity by 25%. Furthermore, it allows you to gain 20% of space usage and improves stock use efficiency by 30%.
27. 46% of organizations don’t use AI
Webinarcare reports that 46% of organizations don’t use AI and 50.1% report limited usage. With the numbers we’ve already seen above we know that AI adds great value to inventory management so if you’re part of the 46%, it may be time to keep up with the modern world.
28. Sitting at 32%, the leading supply chain market constraints are containing cost increases
The top 3 leading supply chain market constraints are cost increases, facing global competition, and adapting to customer expectations, according to Webinarcare. The lead goes to containing cost increases at 32% followed by facing global competition at 28%, and adapting to customer expectations at 27%.
29. Transportation management system can minimize freight invoice payments by 90 95%
Webinarcare reports that the transportation management system can minimize freight invoice payments by 90-95%. Transportation is very important in inventory management, as well as in the supply chain in general.
74% of supply chain companies have 4-5 methods of transportation, and these transportation and logistics activities make up a significant 12% of global GDP. So knowing how to manage it can be very crucial for business.
30. By the end of 2024 the inventory management software market is projected to be valued at $2,191.2 million
According to Future Market Insights, the end of 2024 will witness the rise of the inventory management software market value to $2,191.2 million.
Software in business, no matter the use is gaining value by the second and it’s no surprise considering the amount of time and effort saved with the use of a little technological help.
The 4 Main Types of Inventory Management
Here are the 4 main types of inventory management that you may want to know about.
1. Just-in-time management (JIT)
Originally from 1960s and 1970s Japan, Just-in-time management or JIT credits most of its development to Toyota Motor. This method is characterized by keeping only the inventory needed to produce and sell their products.
This method heightens efficiency in waste reduction and saves significant amounts of money. Among other things, it reduces storage and insurance costs, as well as the cost of liquidating or discarding excess inventory.
However, this method isn’t without its faults as demand can be very unpredictable and a spike in demand means that a company that uses the JIT method cannot meet the demand.
2. Materials Requirement Planning (MRP)
The Materials Requirement Planning or MRP method requires accurate sales records as it is sales-forecast dependent. The planning of inventory needs and the timely communication of those needs to suppliers is needed.
Since manufacturers need to rely heavily on sales forecasts this means that inaccurate forecasting of sales leads to the manufacturer’s inability to fulfill orders.
3. Economic Order Quantity (EOQ)
EOQ or Economic Order Quantity is a method that calculates the number of units a company should add to its inventory with each batch order. This is done to reduce the costs of its inventory while assuming constant consumer demand.
This method ensures that there is just enough inventory ordered per batch to reduce a company’s need to order frequently while also ensuring that there is no excess inventory left on hand.
There is an assumption that an optimal balance exists between inventory holding costs and inventory setup costs, with the total inventory costs being minimized when both setup costs and holding costs are reduced.
4. Days Sales of Inventory (DSI)
DSI takes on any names like the average age of inventory, days inventory outstanding (DIO), days in inventory (DII), days sales in inventory, or days inventory. In accordance with its many names are its many interpretations.
This ratio shows the average days a company needs to convert its inventory including work in progress into sales.
This number shows how many days a company’s current inventory is expected to last which reflects its liquidity.
A lower DSI is usually better, suggesting a shorter time to sell the inventory, but the average DSI varies among different industries.
Why is Inventory Management Important?
Inventory Management is the whole process of managing inventories from raw materials to finished products. Any supply chain expert can understand that this is a critical cog in the machine that is the supply chain.
The goal of Inventory Management is to effectively and efficiently streamline inventories to avoid shortages as well as overstocking.
Inventory management has only increased in relevance as time progresses. Supply chains should be the most efficient that they can be so it was only a matter of time before emerging technologies found a way to make this so.
They left no stone unturned which is why Inventory Management has stayed on the agenda.
What is inventory management?
Inventory management is the controlling and organizing of goods to meet demand efficiently while minimizing costs.
Why is inventory management important?
Inventory management is important because it ensures timely product availability, reduces holding costs, and improves overall business efficiency.
Who is in charge of inventory management?
Typically inventory management is handled by inventory managers or supply chain professionals.
About the author
My name is Marijn Overvest, I’m the founder of Procurement Tactics. I have a deep passion for procurement, and I’ve upskilled over 200 procurement teams from all over the world. When I’m not working, I love running and cycling.