Gartner Research

Improve Supply Chain Inventory Performance With Inventory Quality Ratio

Published: 11 July 2013

ID: G00252532

Analyst(s): Marko Pukkila, Paul Lord


The IQR measures inventory performance relative to future demand. This research can help supply chain leaders to quickly find SKUs with the greatest opportunities for inventory reduction, inventory turn increases and overall supply chain inventory performance improvements with ready-to-use software.

Table Of Contents
  • Key Challenges



  • Implement an Inventory Visibility and Performance Management Platform for Near-Real-Time Visibility Into Inventory Performance Details
  • Use the IQR Metric to Monitor the Alignment of Inventory Levers With Customer Service Objectives
  • Use the IQR Metric to Identify Inventory Excess and Shortfalls, and Then Take Action
  • Consider IQR as a Summary KPI that Incorporates Future Demand, Inventory Unit Value and Segmented Performance Standards

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