Quick Summary: The Stock Holding KPI compares actual inventory value against the ideal Model stock value to help balance service levels with working capital.
Why Stock Holding Matters
The Stock Holding KPI is a direct measure of your capital efficiency. It answers the question: “How much money do I have tied up in inventory, and is it the right amount?”
The ultimate goal is to bring your Actual Stock value as close as possible to the Model Stock value. Achieving this balance means you are not holding unnecessary excess stock, which frees up cash that can be better invested elsewhere in the business.
➜ For more on this topic, read: Model Stock Explained
Understanding the Stock Holding Panel
On the Dashboard, the Stock Holding panel displays:
Actual value: The current total stock value for the selected location.
Model value: The ideal stock value calculated from forecast demand, lead times, and service targets.
Variance: The percentage difference between the starting (benchmark) actual value and the current actual value.
Trend line: A visual indication of how the stock value is changing over time.
Your goal: To review the items with the highest stock holding and find ways to potentially reduce their Actual stock value without putting it at risk of stocking out, thereby negatively impacting your Fill Rate KPI.
Note: When improving your Fill Rate KPI, Stock Holding may temporarily increase as additional orders are placed to resolve stockouts or potential stockouts. Compare Stock Holding results with Fill Rate to ensure inventory reductions do not lower service levels.
➜ For more on this topic, read: Fill Rate and Fill Rate Impact Explained
The Stock Holding KPI shows the historical trend of both your actual and model stock values. To view how your Stock Holding, Fill Rate, and other KPIs are expected to change based on current forecasts and policy settings, use the Stock Projection feature.
➜ For more on this topic, read: Stock Projection Feature
How To: Access the Full Stock Holding Report
How To: Download All Items
➜ Read: How To: Download All Items
Stock Projection Feature
➜ Read: Stock Projection Feature
💡 Tips
High-impact focus: Use the Top 5 list on the Stock Holding panel to identify the items contributing most to your Actual Stock value. Reducing inventory for these few items is the quickest way to align your Actual and Model values.
Balanced improvement: Compare changes in Stock Holding with the Fill Rate panel to confirm that stock reductions do not reduce service levels.
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