Today, we’re going to explore some of the most valuable Inventory Management statistics for 2023.
Let’s get started.
Key Inventory Management Statistics 2023 – MY Choice
- Inventory, accounts receivable, and accounts payable account to $1.1 trillion in assets. That’s about 7% of the US GDP.
- Warehouse space in the United States costs about $5.08 per square foot.
- American retailers carry about $1.43 in inventory for every $1 of sales.
- A top ten reason for startups to fall is that they do not manage their inventory.
- 75% of all supply chain management professionals want to improve their inventory management practices.
- 48% supply chain management and transportation executives state that they need to reevaluate their warehouses locations.
- 24% of small businesses track their inventory with a pen and paper.
- As a result of these and other statistics, many retailers and manufacturers are investing in better inventory management solutions.
- 67% of warehouses plan to use mobile devices to speed up their inventory management.
- Warehouse management solutions are a must today. 25% more retailers are investing in new systems.
- he top issue in 46% of warehouses today is human error.
- 7% of small businesses don’t track inventory at all!
Inventory Management Statistics 2023
- Inventory, along with accounts receivable and accounts payable, have tied up $1.1 trillion in cash.
- Currently, US-based retailers sit on approximately $1.43 in inventory for each $1 of sales they make.
- Only 43% of small businesses track and manage their inventory.
- The amount of inventory on hand based on average daily sales has increased by 8.3% over the previous five years.
Warehouse Management Statistics 2023
- Up to 73% of warehouses plan on using a mobile device for inventory management purposes.
- The number of warehouses in the United States has increased by 6.8% in the past five years.
- A square foot of warehouse and distribution centers in the United States costs about $5.08.
- Approximately 42% of warehouses and distribution centers are expected to invest in technology and automation.
- US-based retailers are trying to increase in-store pickups and lower the burden of inventory from warehouses (i.e. 15% of Target’s online purchases are marked for in-store pickup).
- Around 54% of warehouses are planning to expand the number of inventory stock-keeping units over the upcoming five years.
- Human error was reduced by 43.5% percent by using barcode technology on medication at an academic medical center.
Supply Chain Management Statistics 2023
- The global supply chain industry is worth a whopping $15.85 billion.
- Only 22% of businesses and companies currently have a proactive supply chain network.
- The estimated value of out-of-stock items in 2020 was estimated to be more than $1 trillion due to the COVID19 pandemic.
- The Transportation Management System (TMS) is expected to have a compound annual growth rate of 11.2% from 2020 until 2027.
- 38.8% of small businesses based in the US experienced supply chain delays due to the pandemic.
Supply Chain Disruptions Statistics 2023
- Supply chain disruptions cause significant loss in terms of reputation (54%), logistics (54%), and finances (62%).
- The most frequent cause of supply chain disruptions within the US are unplanned IT outages (68%).
- Up to 30% of companies do not analyze the cause and source of their supply chain disruptions.
- The most common event that can lead to global supply chain disruption are mergers and acquisitions (66%).
Inventory Accuracy and Visibility Statistics 2023
- 69% of companies do not have full visibility of their supply chain, whereas only 6% have full visibility.
- The global supply chain market is set to experience a compound annual growth rate of 11% until 2027.21
- Supply chain visibility is one of the top strategic priorities for companies around the globe.
- According to some estimates, proper item-level tagging can increase inventory accuracy to up to 95%.
- The average United States retail business has an inventory accuracy of just 63%.
- Approximately 34% of retail businesses shipped an order late because they sold a product that was out of stock.
- The most commonly used KPI for supply chain monitoring is daily performance (40%).
Inventory Management Software Statistics 2023
- Around 17% of small businesses use inventory tracking software such as Quickbooks to manage their inventory.28
- An astounding 67.4% of managers at supply chains use Microsoft Excel to keep track of and manage their inventory.
- Approximately 46% of small-to-medium businesses don’t track inventory or use a manual method instead.
How Can These Inventory Management Statistics Help You or Your Business in 2023?
Supply chain management and having a robust inventory management system are of utmost importance for any modern company or business. However, supply chain disruptions and the lack of visibility continue to persist as issues.
Inventory management systems and supply chain monitoring are constantly evolving, despite the fact that the COVID19 pandemic impacted them on a global level. Since supply chains have such a huge impact on company profits, cost reduction and optimization are very valuable.
Reducing supply chain costs from 9% to 4% has the potential to double a company’s profits, which is exactly why 57% of companies believe that supply chain management gives them a more competitive edge within their respective industry.
To sum everything up, these inventory management and supply chain statistics send one clear message, and that is that effective supply chain management is necessary in order for a business to grow and thrive.