Global Insights & KPIs
Global Insights are key performance indicators (KPIs) that measure the health of your entire inventory. These metrics help you understand how well your inventory is performing overall.
Quick Reference
| KPI | What It Measures | Target | Action if High |
|---|---|---|---|
| Total Cost Value | Capital invested | ~3-4 months sales | Too high = overstock |
| Total Retail Value | Market value of inventory | 4-5x cost | Healthy if high |
| Cost in No Sales | Capital tied in non-sellers | < 10% | Too high = discontinue |
| Cost in Overstocked | Capital in excess inventory | < 5% | Too high = promotions |
| Turn Ratio | How fast inventory sells | 4-6x/year | Low = too much stock |
Key Metrics Explained
Total Cost Value
What it measures: Total amount of capital invested in current inventory
Formula: Sum of (On-Hand × Unit Cost) for all products
Example:
- 500 units @ $20 = $10,000
- 300 units @ $15 = $4,500
- 200 units @ $50 = $10,000
- Total Cost Value = $24,500
What it means:
- Total cash tied up in inventory right now
- This is capital that could be used elsewhere
- Higher = more inventory investment
Target Range:
- Varies by industry
- Rule of thumb: 3-4 months of sales
- If $100K/month sales → target $300-400K inventory
If too high:
✗ Overstock problem
✗ Too much capital tied up
✗ Risk of obsolescence
✗ Review overstocked items
✗ Run promotions to move stock
If too low:
✗ Understocked, risk of stockouts
✗ Increase safety stock
✗ Order more inventory
Total Retail Value
What it measures: Total market value (selling price × quantity) of your inventory
Formula: Sum of (On-Hand × Retail Price) for all products
Example:
- 500 units @ $50 retail = $25,000
- 300 units @ $45 retail = $13,500
- 200 units @ $150 retail = $30,000
- Total Retail Value = $68,500
What it means:
- What your inventory is worth at retail prices
- Useful for insurance and valuation
- Higher retail value = more merchandise
Retail Value vs. Cost Value:
- Cost Value = $24,500 (what you paid)
- Retail Value = $68,500 (what you sell for)
- Profit margin built in = $44,000
Healthy ratio:
- Retail Value should be 3-4x Cost Value
- Example: $24,500 cost → $73,500 retail (3x)
- If lower, your margins are too thin
Cost Value in No Sales
What it measures: Capital tied up in products that aren't selling
Formula: Sum of (On-Hand × Cost) for products with zero sales (in selected period)
Example:
- Product A: 50 units @ $30, zero sales = $1,500
- Product B: 30 units @ $20, zero sales = $600
- Product C: 100 units @ $25, zero sales = $2,500
- Cost in No Sales = $4,600
What it means:
- Capital locked in dead inventory
- These products don't generate revenue
- Pure waste if they'll never sell
Target: < 10% of total cost value
Example:
- Total cost value: $24,500
- Target max: $2,450 (10%)
- Actual: $4,600 ✗ TOO HIGH
If too high:
🚨 Identify non-sellers
🚨 Discontinue unpopular items
🚨 Run clearance sale
🚨 Bundle with popular items
🚨 Donate for tax deduction
🚨 Liquidate inventory
How to use in Synplex:
- Find products with zero sales (Grade C, low movement)
- Sort by cost value
- Prioritize highest-cost non-sellers
- Make keep/discontinue decision
- Execute clearance plan
Cost Value in Overstocked
What it measures: Capital tied up in excess inventory (above 100-120 days supply)
Formula: Sum of (Excess Units × Cost) for overstocked products
Example:
- Product A: 100 days supply = 2000 units, threshold = 120 days = 2400 units
- Overstocked by: 0 units (actually need to increase)
- Product B: 150 days supply = 1500 units, threshold = 100 days = 1000 units
- Overstocked by: 500 units
- Excess cost: 500 × $20 = $10,000
What it means:
- Capital wasted on more inventory than needed
- Ties up cash in storage
- Risk of obsolescence
- Wastes warehouse space
Target: < 5% of total cost value
Example:
- Total cost value: $24,500
- Target max: $1,225 (5%)
- Actual: $10,000 ✗ WAY TOO HIGH
If too high:
📉 Demand forecast changed
📉 Over-ordered in PO
📉 Seasonal decline (store stock)
📉 Run promotion to move stock
📉 Bundle with other items
📉 Consider bundled deals
Action plan:
- Identify overstocked items (in Synplex)
- Reduce future orders (until corrected)
- Run promotions
- Consider bundling
- Plan clearance if still overstocked after 30 days
Inventory Turnover Ratio
What it measures: How many times per year you completely sell through your inventory
Formula: Cost of Goods Sold ÷ Average Inventory Cost
Example:
- Annual COGS: $100,000
- Average inventory cost: $20,000
- Turnover ratio = 100,000 ÷ 20,000 = 5x per year
What it means:
- You completely cycle through inventory 5 times yearly
- Every 2.4 months (365 ÷ 5) you sell everything and restock
Target ranges by industry:
- Fast fashion: 8-12x/year (very fast)
- General retail: 4-6x/year (moderate)
- Specialty/luxury: 2-3x/year (slow)
- Your industry may vary
Low turnover (< 2x):
✗ Inventory sitting too long
✗ Capital inefficiency
✗ Obsolescence risk
✗ Reduce stock levels
High turnover (> 10x):
✗ Very thin inventory
✗ Stockout risk
✗ Supplier dependency
✗ Build safety stock
Healthy turnover:
✓ Capital efficient
✓ Risk balanced
✓ Fresh inventory
✓ Growth sustainable
Days Inventory Outstanding (DIO)
What it measures: Average days inventory sits before being sold
Formula: 365 ÷ Turnover Ratio
Example:
- Turnover: 5x per year
- DIO = 365 ÷ 5 = 73 days
What it means:
- On average, inventory sits 73 days before selling
- Every 2.4 months you completely cycle
Target ranges:
- Fast fashion: 30-45 days
- General retail: 60-90 days
- Specialty goods: 90-180 days
Too high (> 90 days for general):
📈 Inventory aging
📈 Slow movement
📈 Capital tied up
📈 Accelerate sales
Too low (< 30 days for general):
📉 Very fast moving
📉 Risk of stockouts
📉 Supply pressure
📉 Build buffer
Setting Up Global Insights in Synplex
Accessing Insights
- Go to Dashboard → Insights section
- See all KPIs at a glance
- View trends over time
- Drill into each metric
Configuring Insight Settings
- Go to Settings → Insight Settings
- Configure calculation periods (7, 30, 60, 90 days)
- Set thresholds for statuses
- Define grading weights
- Review periodically
Understanding Calculation Periods
| Period | Best For | Use Case |
|---|---|---|
| 7 days | Trending | See daily/weekly changes |
| 30 days | Standard | Monthly review (default) |
| 60 days | Smoothing | Remove volatility |
| 90 days | Seasonal | Quarterly planning |
Using Insights for Decision Making
Weekly Review (5 minutes)
- Check dashboard KPIs
- Note any significant changes
- Identify products needing attention
- Plan next week's actions
Monthly Review (30 minutes)
- Analyze cost value trends
- Review products with no sales
- Check overstocked items
- Assess inventory turnover
- Plan promotions if needed
Quarterly Review (1 hour)
- Comprehensive KPI analysis
- Identify trends (improving/declining)
- Adjust safety stock if needed
- Review supplier performance
- Update forecasts
- Plan for next quarter
Real-World Example
Your Store This Month:
TOTAL COST VALUE: $24,500 ← Total inventory investment
TOTAL RETAIL VALUE: $68,500 ← At selling prices
COST IN NO SALES: $4,600 ← 19% (TOO HIGH - should be < 10%)
COST IN OVERSTOCKED: $3,200 ← 13% (HIGH - should be < 5%)
TURNOVER RATIO: 5.2x ← 5x per year (healthy)
DIO: 70 days ← Good for general retail
What this tells you:
✅ Healthy turnover (5.2x) — Inventory moving at good pace
❌ Too many non-sellers — 19% in products with zero sales
❌ Overstocked — 13% excess inventory
⚠️ Capital tied up unnecessarily — $7,800 could be freed
Action Plan:
-
Review no-sales products (19%)
- Identify Grade C items with zero sales
- Make discontinue/clear decisions
- Target: Reduce to < 10%
-
Tackle overstocked items (13%)
- Find products > 120 days supply
- Run promotions or bundling
- Reduce future orders
- Target: Reduce to < 5%
-
Free up capital (~$7,800)
- Clearing non-sellers and overstock
- Use for more profitable products
- Improve overall ROI
FAQ
Q: How often should I review KPIs?
A: Weekly dashboard check (2 min), monthly deep dive (30 min), quarterly strategy (1 hour).
Q: What if my cost in no sales is 25%?
A: Significant problem. You have a quarter of your capital in dead inventory. Deep clean needed.
Q: Can I have high turnover and low stockouts?
A: Yes, with good safety stock and frequent reorders. That's the goal.
Q: How do I improve turnover?
A: Reduce slow-moving products, increase fast-moving products, improve forecasting.
Q: Should I focus on cost or retail value?
A: Both. Cost value for cash management, retail value for market performance.
Next Steps
- Review your KPIs on the dashboard
- Note any metrics out of target — Cost in no sales, overstocked, etc.
- Make a plan — How to improve each metric
- Execute — Promotions, discontinuation, ordering adjustments
- Review monthly — Track improvement
Related Articles
- ABC Analysis — Identify which products to focus on
- Safety Stock — Balance turnover vs. stockouts
- Product Statuses — Monitor inventory health
Questions?
Contact support@synplex.io for help analyzing your KPIs.