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KPI reference

Every metric you’ll see on the Overview page, in alphabetical order. For each: definition, formula in plain English, a one-line interpretation, and which surface displays it.

ABC analysis category

Section titled “ABC analysis category”
  • Definition: Tier classification — A is highest-revenue, C is the long tail.
  • Formula: Variants ranked by revenue over the configured lookback period; top X% = A, next Y% = B, remainder = C.
  • Interpretation: Focus stock-management attention on A tier.
  • Where: KPIs tab → ABC Analysis chart. Also the ABC tierABC tierThe A / B / C grouping from ABC analysis — A is your highest-revenue tier, C is the long tail. Logistified computes it from sales over the configured lookback period. Read more → column on the Forecast page.

Average inventory value

Section titled “Average inventory value”
  • Definition: Mean inventory at cost over the period.
  • Formula: Average inventory × unit cost.
  • Interpretation: Capital tied up in stock.
  • Where: KPIs tab → KPI tile.

Days on hand (DOH)Days on HandHow many days of demand your current stock covers, at the current sales rate. Lower DOH means stock is moving quickly; higher DOH means you may be over-stocked. Computed as `Average Inventory / COGS × 365`. Read more →

Section titled “Days on hand (DOH)”
  • Definition: How many days of sales your average inventory covers.
  • Formula: (Average inventory ÷ total units sold) × days in period.
  • Interpretation: 30 days = a month of cover. Lower = tighter inventory; higher = more cushion.
  • Where: KPIs tab → KPI tile. Also the Days of Stock column on the Forecast page.

Inactive items

Section titled “Inactive items”
  • Definition: Count of variants currently marked inactive.
  • Formula: Snapshot count.
  • Interpretation: A high number isn’t necessarily a problem — it just means you’ve archived a lot of variants. Worth a glance after big catalog cleanups.
  • Where: KPIs tab → Inventory Health Status card.

Inventory gap

Section titled “Inventory gap”
  • Definition: Variance between expected and actual inventory.
  • Formula: (expected − actual) summed across variants, expressed as a percentage.
  • Interpretation: Persistent gaps mean drift; investigate via Incoming Reconciliation or stock takes.
  • Where: KPIs tab → KPI tile.

Inventory turnover rate

Section titled “Inventory turnover rate”
  • Definition: How many times your inventory cycles in a period.
  • Formula: Total units sold ÷ average inventory.
  • Interpretation: Higher = leaner; lower = more cushion. Compare to your category benchmark.
  • Where: KPIs tab → KPI tile.

Missing costs

Section titled “Missing costs”
  • Definition: Count of variants without a unit cost set.
  • Formula: Snapshot count.
  • Interpretation: Reorder math and profit metrics need a cost. Worth resolving early.
  • Where: KPIs tab → Inventory Health Status card. The View link opens a Forecast view filtered to those variants.

Missing SKUs

Section titled “Missing SKUs”
  • Definition: Count of variants without a SKU set in Shopify.
  • Formula: Snapshot count.
  • Interpretation: Without a SKU, variants are hard to match in CSV imports and supplier mappings. Fix in Shopify.
  • Where: KPIs tab → Inventory Health Status card.

Out of stock

Section titled “Out of stock”
  • Definition: Count of variants currently at zero total on-hand.
  • Formula: Snapshot count of variants where on-hand = 0.
  • Interpretation: The most heavily weighted issue in the inventory health score. Stock-outs cost sales.
  • Where: KPIs tab → Inventory Health Status card.

Revenue per unit

Section titled “Revenue per unit”
  • Definition: Average revenue per unit sold.
  • Formula: Total revenue ÷ total units sold.
  • Interpretation: Mix indicator. Drops if low-margin SKUs are taking volume share.
  • Where: KPIs tab → KPI tile.

Sell-through rate

Section titled “Sell-through rate”
  • Definition: Percentage of inventory sold in a period.
  • Formula: (units sold ÷ units available) × 100.
  • Interpretation: Higher = faster-moving. Compare across products to identify dogs.
  • Where: KPIs tab → KPI tile.

SKU revenue distribution

Section titled “SKU revenue distribution”
  • Definition: Revenue concentration across variants.
  • Formula: Per-SKU revenue ÷ total revenue, charted as a pie.
  • Interpretation: Pareto check — usually 20% of SKUs drive 80% of revenue.
  • Where: KPIs tab → SKU Revenue Distribution chart (full-width pie).

Stock-to-sales ratio

Section titled “Stock-to-sales ratio”
  • Definition: Inventory carrying weight relative to demand.
  • Formula: Inventory at end of period ÷ units sold during the period.
  • Interpretation: Higher = more days of cover; lower = tighter. Target depends on lead time.
  • Where: KPIs tab → KPI tile.

See also

Section titled “See also”

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