KPI of the Day – Sales: # Inventory to sales ratio (ISR)
Definition
Measures the ratio between the retailer’s inventory value and the sales revenue.
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Measures the ratio between the retailer’s inventory value and the sales revenue.
Measures the percentage of items or products that are delivered on time to customers.
Nowadays, supplier services and purchasing power are of major strategic importance to most companies.
In the past years, the buyer-supplier relationship has been skewed a bit, favouring the latter more often. There are a number of reason that have led to this shift.
There are two main things in stake for suppliers who pursue the opportunity of being enlisted in the large supplier panel of 1st class global companies like IKEA, or H&M: increasing revenue and strengthening their clients’ portfolio.