Inventory KPIs for MRO and mining
Good inventory KPIs measure both whether the planning process is followed and whether it delivers results.
Two kinds of KPI
Outcome KPIs show results: availability, stock value, excess. Process KPIs show whether the work that produces those results is being done: reviews completed, recommendations actioned, data fixed. Outcome KPIs alone tell you something went wrong, usually months later. Process KPIs show why, and early enough to act.
Outcome KPIs
| KPI | What it shows | Watch out for |
|---|---|---|
|
Service level or fill rate |
How often parts are available when requested |
Measure critical items separately, or averages hide the misses that matter |
|
Stockouts on critical items |
Failures of the most important parts |
Count them individually and investigate each one |
|
Work orders waiting for parts |
The impact of stockouts on maintenance |
Depends on maintenance recording delays consistently |
|
Inventory value against budget |
Working capital tied up in stock |
Value alone says nothing about risk |
|
Excess and obsolete value |
Stock above need, or no longer needed |
No movement does not always mean no requirement |
|
Emergency purchases |
How often planning failed and urgent buying filled the gap |
Track both number and premium cost |
Process KPIs
Planned reviews completed on time
Recommendations actioned, overridden or ignored, and why
Supplier lead time accuracy and on-time delivery
Master data quality for critical and high-value items
New materials created to standard
Why inventory turns can mislead
Inventory turnover is a useful measure in retail. For MRO, it can push the wrong behaviour: the easiest way to improve turns is to remove slow-moving stock, which often includes the critical spares that protect the plant. Use turns for consumables, and judge critical spares on risk.