Inventory Incharge KRA/KPI

Key Responsibility Areas (KRA) & Key Performance Indicators (KPI) for Inventory Incharge

1. Inventory Management

KRA: Ensuring accurate tracking and management of inventory levels to meet operational needs efficiently.

Short Description: Efficiently manage inventory levels.

• KPI 1: Inventory turnover rate
• KPI 2: Stock-out rate
• KPI 3: Order fulfillment accuracy
• KPI 4: Inventory carrying costs

2. Stock Replenishment

KRA: Timely replenishment of stock to prevent stockouts and minimize excess inventory.

Short Description: Ensure timely stock replenishment.

• KPI 1: Reorder point accuracy
• KPI 2: Lead time for stock replenishment
• KPI 3: Percentage of emergency orders
• KPI 4: Stock replenishment cycle time

3. Inventory Accuracy

KRA: Maintaining high levels of inventory accuracy through regular audits and reconciliation.

Short Description: Ensure inventory accuracy through audits.

• KPI 1: Inventory count accuracy
• KPI 2: Inventory shrinkage rate
• KPI 3: Cycle count accuracy
• KPI 4: Root cause analysis of discrepancies

4. Supplier Management

KRA: Establishing and maintaining strong relationships with suppliers to ensure timely deliveries and favorable terms.

Short Description: Manage relationships with suppliers.

• KPI 1: Supplier lead time compliance
• KPI 2: Supplier quality ratings
• KPI 3: Percentage of on-time deliveries
• KPI 4: Contract negotiation success rate

5. Demand Forecasting

KRA: Analyzing market trends and historical data to forecast demand accurately.

Short Description: Accurately forecast demand.

• KPI 1: Forecast accuracy rate
• KPI 2: Forecast bias analysis
• KPI 3: Demand variance analysis
• KPI 4: Sales forecast alignment

6. Cost Control

KRA: Implementing cost-effective measures to control inventory-related expenses.

Short Description: Control inventory costs efficiently.

• KPI 1: Inventory turnover ratio
• KPI 2: Cost per unit of inventory
• KPI 3: Cost savings through optimization
• KPI 4: Cost of goods sold (COGS) reduction

7. Warehouse Management

KRA: Ensuring efficient warehouse operations and layout for optimal inventory handling.

Short Description: Optimize warehouse operations.

• KPI 1: Warehouse capacity utilization
• KPI 2: Order picking accuracy
• KPI 3: Warehouse turnover rate
• KPI 4: Warehouse labor productivity

8. Risk Management

KRA: Identifying and mitigating inventory-related risks to minimize disruptions.

Short Description: Identify and mitigate inventory risks.

• KPI 1: Risk assessment completion rate
• KPI 2: Inventory loss prevention measures
• KPI 3: Compliance with regulatory requirements
• KPI 4: Business continuity plan effectiveness

9. Performance Reporting

KRA: Generating regular reports on key inventory metrics for management review and decision-making.

Short Description: Provide insightful inventory reports.

• KPI 1: Report accuracy and timeliness
• KPI 2: Key performance indicator dashboard development
• KPI 3: Management utilization of reports
• KPI 4: Actionable insights from reports

10. Continuous Improvement

KRA: Proactively identifying areas for process improvement and implementing efficiency enhancements.

Short Description: Drive continuous improvement initiatives.

• KPI 1: Number of process improvement initiatives implemented
• KPI 2: Employee engagement in improvement projects
• KPI 3: Cost savings from improvement projects
• KPI 4: Reduction in inventory-related errors