--- title: Which KPIs should you track to justify an investment in logistics automation? description: What indicators should you track to justify an investment in logistics automation? Discover the key KPIs to prove your ROI. image: https://blog.scallog.com/hubfs/indicateurs-justifier-investissemen-automatisation-logistique.jpg --- ![Logo Scallog Robot Logistique](https://blog.scallog.com/hubfs/Logo-1.png "Logo Scallog Robot Logistique") - SOLUTION - [Overview](https://www.scallog.com/en/robotizing-logistics/) - [Benefits](https://www.scallog.com/en/benefits/) - [Optimization of your height](https://www.scallog.com/en/optimization-warehouse-height/) - PRODUCTS - [Software](https://www.scallog.com/en/software/) - [Mobile Robot](https://www.scallog.com/en/mobile-boby-robot/) - [Mobile Shelves](https://www.scallog.com/en/scallog-shelves/) - [Workstation](https://www.scallog.com/en/workstation/) - SECTORS - [Consumer goods](https://www.scallog.com/en/consumer-goods/) - [Cosmetics & Pharmaceutical](https://www.scallog.com/en/cosmetics-pharmaceuticals/) - [E-commerce](https://www.scallog.com/en/e-commerce-2/) - [Fashion](https://www.scallog.com/fr/fashion/) - [Industry](https://www.scallog.com/en/manufacturing/) - [Retail](https://www.scallog.com/en/retail-2/) - APPLICATIONS - [Inventory](https://www.scallog.com/en/inventory/) - [Picking](https://www.scallog.com/en/logistics-picking/) - [Reverse logistics](https://www.scallog.com/en/reverse-logistics/) - [Replenishment](https://www.scallog.com/en/replenishment/) - [CUSTOMERS SUCCESSES](https://www.scallog.com/en/business-case-en/) - SCALLOG - [About us](https://www.scallog.com/en/history/) - [Partners](https://www.scallog.com/en/?page_id=6130) - [News](https://www.scallog.com/en/blog-2/) - [Magazine](https://blog.scallog.com/en) - [Events](https://www.scallog.com/en/events/) - [Support](https://www.scallog.com/en/scallogs-support/) - CONTACT - [Contact Us](https://www.scallog.com/en/contact-us/) - [Career](https://www.welcometothejungle.co/fr/companies/scallog) - [![Français](data:image/png;base64,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 "Français (fr_FR)")](https://www.scallog.com/fr/) - [![English](data:image/png;base64,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 "English (en_GB)")](https://www.scallog.com/en/) - [![Deutsch](data:image/png;base64,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 "Deutsch (de_DE)")](https://www.scallog.com/de/) # Which KPIs should you track to justify an investment in logistics automation? Par [SCALLOG Experts](https://blog.scallog.com/en/author/léquipe-marketing-et-communication) | le  13/07/2023 |  temps de lecture : 4 min *Supply chain performance is measured. Without reliable indicators, investment decisions rely on intuition rather than facts, exposing the company to a real risk of under-dimensioning or over-investing, and limiting opportunities to reduce costs through technology. Among available metrics, inventory turnover plays a central role: it directly reflects how efficiently an organization manages its goods flows, from procurement to customer delivery. Understanding this indicator, knowing how to calculate and interpret it correctly, sets the foundation for informed decision-making regarding solutions to deploy—particularly in terms of technology and cost reduction.* ![Which KPIs should you track to justify an investment in logistics automation?](https://blog.scallog.com/hs-fs/hubfs/indicateurs-justifier-investissemen-automatisation-logistique.jpg?width=1000&height=700&name=indicateurs-justifier-investissemen-automatisation-logistique.jpg) ## Inventory Turnover: Definition and Challenges Inventory turnover measures how frequently a company replaces its stock over a given period. A high turnover rate indicates that products do not sit stagnant in the warehouse: the supply chain functions, flows are smooth, and cash flow remains healthy. Conversely, a low rate can signal overstocking, dead stock, or a mismatch between forecasts and actual market demand. However, this indicator has a key limitation that should not be overlooked: it is an average. For seasonal or highly variable products, this average can mask peaks and troughs that distort analysis. Consequently, inventory turnover must always be viewed within its sector context before drawing operational conclusions. Variations across sectors are indeed considerable. A food supply chain inherently shows a very high turnover rate, as it handles fast-moving perishable goods. Fast fashion also experiences sustained turnover, with collections refreshed sometimes from week to week. In contrast, a company manufacturing long-cycle industrial equipment will have a structurally low turnover rate, without this revealing any failure in its supply chain. Comparing its rate to other players in the same market remains essential for the metric to be meaningful. ## How to Calculate Inventory Turnover The formula is precise. Divide average inventory by the cost of goods sold (COGS), then multiply the result by 365 to get annual turnover expressed in days. Pay close attention to the calculation of average inventory: it must include stock replenishments made over the reference period. The simplified formula "initial stock minus final stock" omits these movements and can lead to erroneous conclusions. Applied regularly, this calculation makes it possible to track performance over time and identify problematic SKUs. A [perpetual inventory system]([https://www.scallog.com/fr/inventaire-permanent/](https://www.scallog.com/fr/inventaire-permanent/)) greatly facilitates this tracking: by maintaining an up-to-date view of stock levels in real time, it avoids discrepancies between theoretical data and physical reality in the warehouse. ## Levers to Improve Inventory Turnover ### Optimize Procurement and the Transport Chain The first lever involves working on supplier responsiveness and transport conditions. Choosing suppliers capable of delivering faster, negotiating shorter lead times, or favoring partners geographically close to the distribution center reduces replenishment lead times and, as a result, the required safety stock levels. Transport plays a strategic role here: fast, reliable deliveries allow operations to run on leaner stock without increasing stockout risks. Reducing logistics transport costs often stems from better planning of inbound flows, directly linked to sales forecasts. ### Improve Service Level to Secure Flows The second lever focuses on service level—that is, the ability to fulfill orders without running out of stock during replenishment cycles. A customer who cannot find the product they are looking for does not wait: they turn to a competitor. Aiming for a high service level protects revenue while maintaining fluid logistics operations. This requires granular forecasting, a clear understanding of demand cycles, and an organization capable of adapting quickly to market changes. ## Stockout Rate: An Essential Complementary KPI Inventory turnover alone is not enough. The stockout rate complements it by measuring the actual capacity to deliver the right products at the right time. Its formula is simple: divide the number of unfulfilled orders due to stockouts by the total number of orders placed over the period. Unlike inventory turnover, this ratio must remain as low as possible. A stockout on a high-demand product or one with long replenishment lead times is particularly costly. It generates direct revenue loss and risks damaging customer relationships, especially in B2B contexts where a supplier's stockout can disrupt the customer's entire supply chain. Prioritizing SKUs based on criticality, replenishment lead time, and value allows efforts to be focused where the stakes are highest. ## From KPI Management to Automation Decisions These indicators are not just operational tracking tools; they also provide strategic arguments to justify warehouse automation investments. Low turnover across many SKUs combined with a high stockout rate on fast-moving items points to an organization struggling to manage vastly different stock profiles simultaneously. This is precisely where automated systems deliver maximum value. A goods-to-person system, for example, automates picking for slow-moving SKUs without assigning operators to long, unproductive trips. Integrated warehouse management systems paired with autonomous mobile robots help lower operational costs while improving order processing speed and accuracy. Embedded artificial intelligence in these solutions refines inventory forecasting and anticipates stockouts before they occur. Automating picking and replenishment processes also cuts costs tied to preparation errors and boosts overall distribution center productivity. As customer expectations for fast delivery intensify—especially in urban logistics spaces—this transformation becomes a real competitive edge. An integrated [logistics software]([https://www.scallog.com/fr/logiciel-logistique/](https://www.scallog.com/fr/logiciel-logistique/)) enables real-time management of these systems, optimizing flows and driving decisions based on reliable data rather than estimates. Evolving market demands are pushing companies toward greater automation to stay competitive. Inventory turnover and stockout rates, analyzed together, provide the framework needed to identify segments where technological investment makes the most sense. They enable a shift from a reactive approach to an anticipatory one—precisely the advantage offered by technology well-integrated into daily warehouse operations. ### Inscrivez vous a la newsletter ![SCALLOG Experts](https://blog.scallog.com/hubfs/em5kVUmy_400x400.jpg) ### [SCALLOG Experts](https://blog.scallog.com/en/author/léquipe-marketing-et-communication) #### [**Article précédent** How do you optimise your supply chain?](https://blog.scallog.com/en/how-do-you-optimise-your-supply-chain) #### [**Article suivant** What is logistics replenishment?](https://blog.scallog.com/en/what-is-logistics-replenishment) #### Ces articles peuvent vous intéresser ## [How do you implement optimal returns logistics?](https://blog.scallog.com/en/how-to-optimize-reverse-logistics) ## [How do you manage stock using Excel?](https://blog.scallog.com/en/gestion-stocks-excel) ## [Amazon Robotics and logistics robots in the supply chain](https://blog.scallog.com/en/amazon-robotics-robots-logistiques-supply-chain) ## [How do you implement optimal returns logistics?](https://blog.scallog.com/en/how-to-optimize-reverse-logistics) ## [Amazon Robotics and logistics robots in the supply chain](https://blog.scallog.com/en/amazon-robotics-robots-logistiques-supply-chain) ## [Dark stores: the future of urban logistics?](https://blog.scallog.com/en/dark-stores-the-future-of-urban-logistics) ## [How do you implement optimal returns logistics?](https://blog.scallog.com/en/how-to-optimize-reverse-logistics) ## [How do you manage stock using Excel?](https://blog.scallog.com/en/gestion-stocks-excel) ## [Amazon Robotics and logistics robots in the supply chain](https://blog.scallog.com/en/amazon-robotics-robots-logistiques-supply-chain) ### Laisser nous votre commentaire ## Articles les plus lus ### Thématiques - [Automatiser (37)](https://blog.scallog.com/tag/automatiser) - [Commandes (37)](https://blog.scallog.com/tag/commandes) - [Ecommerce (25)](https://blog.scallog.com/tag/ecommerce) - [Entrepôt (45)](https://blog.scallog.com/tag/entrepôt) - [Goods to man (27)](https://blog.scallog.com/tag/goods-to-man) - [Insider (5)](https://blog.scallog.com/tag/insider) - [kitting (1)](https://blog.scallog.com/tag/kitting) - [Logistique (45)](https://blog.scallog.com/tag/logistique) - [Omnicanal (11)](https://blog.scallog.com/tag/omnicanal) - [rse (1)](https://blog.scallog.com/tag/rse) See all ### Suivez nous sur : ![SCALLOG](https://blog.scallog.com/hubfs/Logo-1.png) @SCALLOG - 2025 ### Contactez - nous 15, rue du Port 92000 Nanterre France Tél. : + 33 (0)1 84 20 82 42 [Mentions Légales](https://www.scallog.com/fr/mentions-legales/) [Politique de Confidentialités](https://www.scallog.com/fr/mentions-legales/)