GITNUXREPORT 2025

Inventory Statistics

Global inventory management market grows, driven by automation, analytics, and efficiency.

Jannik Linder

Co-Founder of Gitnux, specialized in content and tech since 2016.

First published: April 29, 2025

Our Commitment to Accuracy

Rigorous fact-checking • Reputable sources • Regular updatesLearn more

Statistic 1

Just 35% of businesses feel confident in their inventory forecast accuracy.

Statistic 2

Inventory accuracy levels are only around 63% on average across industries.

Statistic 3

48% of small to medium-sized retailers experience difficulty in accurate inventory tracking.

Statistic 4

Inventory errors can lead to lost sales ranging from 3% to 10% annually.

Statistic 5

Up to 70% of inventory data in companies can be inaccurate or outdated.

Statistic 6

The implementation of automated inventory systems has been shown to improve order accuracy by 99.5%.

Statistic 7

Approximately 70% of supply chain delays are caused by inaccurate or incomplete inventory data.

Statistic 8

The average number of stock-keeping units (SKUs) in a major retail chain is over 30,000.

Statistic 9

Businesses that implement RFID technology experience a 98% accuracy rate in inventory tracking.

Statistic 10

Around 80% of inventory data in companies is collected manually, leading to higher error rates.

Statistic 11

Global inventory management market size was valued at USD 10.63 billion in 2021 and is expected to grow at a compound annual growth rate (CAGR) of 6.4% from 2022 to 2028.

Statistic 12

The global RFID inventory tracking market was valued at approximately USD 2.29 billion in 2020 and projected to grow.

Statistic 13

The global inventory management software market is expected to reach USD 10.23 billion by 2027, growing at a CAGR of 14.9% from 2020 to 2027.

Statistic 14

Use of machine learning algorithms in inventory management is anticipated to grow by over 50% in the next five years.

Statistic 15

The use of drone technology for inventory counting in warehouses is expected to increase by 25% annually.

Statistic 16

43% of companies say inefficient inventory management has caused stockouts and oversupply problems.

Statistic 17

Retail inventory shrinkage due to theft, fraud, or administrative error costs U.S. retailers over $50 billion annually.

Statistic 18

The average warehouse holds approximately 30% more inventory than is needed for daily operations.

Statistic 19

52% of inventory managers report that they regularly face challenges in maintaining optimal stock levels.

Statistic 20

The e-commerce sector’s inventory turnover ratio is approximately 4.5, indicating the number of times inventory is sold and replaced per year.

Statistic 21

The cost of holding inventory includes warehousing, obsolescence, depreciation, and insurance, which can total up to 25-30% of inventory value annually.

Statistic 22

40% of manufacturing companies report that inventory inaccuracies delay production schedules.

Statistic 23

The retail industry has a typical inventory turnover rate of roughly 5 to 8 times per year.

Statistic 24

Implementing just-in-time (JIT) inventory systems can reduce inventory levels by up to 40% but requires precise demand forecasting.

Statistic 25

Inventory metrics such as turnover ratio, gross margin return on investment (GMROI), and days of inventory are critical for assessing supply chain health.

Statistic 26

The average inventory-to-sales ratio in the manufacturing sector is approximately 1.4, indicating inventory levels relative to sales.

Statistic 27

62% of warehouses are manually managing inventory, which can lead to errors and inefficiencies.

Statistic 28

The use of automated inventory management systems can reduce stockouts by up to 80%.

Statistic 29

30% of inventory in retail stores is often dead stock that does not generate revenue.

Statistic 30

The average supply chain carries about 43 days’ worth of inventory as safety stock.

Statistic 31

Companies can reduce their inventory holding costs by 10-15% annually through improved data accuracy and automation.

Statistic 32

Inventory shrinkage is responsible for approximately 1.4% of sales loss in retail.

Statistic 33

The average lead time for replenishing inventory in retail is around 10 to 14 days.

Statistic 34

Around 20% to 25% of inventory is typically lost due to spoilage or obsolescence in the food and beverage industry.

Statistic 35

Approximately 55% of companies use manual processes for inventory management, despite the availability of digital solutions.

Statistic 36

Just 25% of companies feel their inventory management systems are fully integrated across departments.

Statistic 37

Inventory optimization can help reduce excess stock by up to 25-30%.

Statistic 38

45% of manufacturers report stockouts affecting their production plans.

Statistic 39

The average age of inventory in warehouses is around 75 days.

Statistic 40

Inventory turnover rate varies by industry, with high-tech manufacturing averaging around 5.4 times per year.

Statistic 41

E-commerce businesses with real-time inventory tracking see a 15-20% decrease in stockouts.

Statistic 42

Inventory turnover ratio is a critical key performance indicator (KPI) for assessing inventory efficiency, with optimal ratios varying between 4 and 6 in most industries.

Statistic 43

During the holiday season, inventory shrinkage can increase by up to 5%, leading to significant revenue loss.

Statistic 44

Poor inventory management can lead to an increase in working capital requirements by up to 20%, affecting overall financial health.

Statistic 45

Companies that adopt advanced inventory analytics see a reduction in excess inventory by about 20%, freeing up capital.

Statistic 46

The use of barcoding in warehouses increases operational efficiency by approximately 25-30%.

Statistic 47

Inventory buffer stock typically accounts for 10-15% of total inventory to mitigate demand variability.

Statistic 48

The average cold storage inventory in the food industry is held for about 12 days.

Statistic 49

22% of supply chain costs are attributed to excess inventory.

Statistic 50

Inventory carrying costs globally are estimated to be around $1.1 trillion annually.

Statistic 51

About 65% of companies have experienced disruptions in their supply chain due to inventory shortages during the pandemic.

Statistic 52

During the holiday season, retailers often increase inventory levels by 20-30% to meet demand.

Statistic 53

During inflationary periods, companies often increase safety stock levels by as much as 20-25% to buffer against price volatility.

Statistic 54

The cost of inventory errors can result in loss of up to 10% of a company’s gross profit.

Statistic 55

The average lead time for new product launches impacting inventory levels is 6 to 9 months.

Statistic 56

For every dollar invested in inventory management technologies, companies see an average return of $4.50 in cost savings.

Statistic 57

Approximately 45% of companies report that inventory costs are a significant factor in their overall supply chain expenses.

Statistic 58

Just 29% of companies use advanced predictive analytics to optimize inventory levels.

Statistic 59

58% of companies adopt cloud-based inventory management solutions to improve scalability and accessibility.

Statistic 60

64% of retail companies report high or very high interest in adopting blockchain technology for inventory transparency.

Statistic 61

Over 30% of companies plan to invest in AI-driven inventory management solutions in the next three years.

Statistic 62

Approximately 60% of manufacturers use ERP (Enterprise Resource Planning) systems to manage inventory.

Statistic 63

90% of companies aim to implement more automation in their inventory management processes over the next five years.

Slide 1 of 63

Sources

Our Reports have been cited by:

Trust Badges - Publications that have cited our reports

Key Highlights

Global inventory management market size was valued at USD 10.63 billion in 2021 and is expected to grow at a compound annual growth rate (CAGR) of 6.4% from 2022 to 2028.
43% of companies say inefficient inventory management has caused stockouts and oversupply problems.
Just 35% of businesses feel confident in their inventory forecast accuracy.
Inventory accuracy levels are only around 63% on average across industries.
22% of supply chain costs are attributed to excess inventory.
Retail inventory shrinkage due to theft, fraud, or administrative error costs U.S. retailers over $50 billion annually.
The average warehouse holds approximately 30% more inventory than is needed for daily operations.
52% of inventory managers report that they regularly face challenges in maintaining optimal stock levels.
The e-commerce sector’s inventory turnover ratio is approximately 4.5, indicating the number of times inventory is sold and replaced per year.
Just 29% of companies use advanced predictive analytics to optimize inventory levels.
48% of small to medium-sized retailers experience difficulty in accurate inventory tracking.
The cost of holding inventory includes warehousing, obsolescence, depreciation, and insurance, which can total up to 25-30% of inventory value annually.
Inventory carrying costs globally are estimated to be around $1.1 trillion annually.

With the global inventory management market valued at over $10 billion and projected to grow steadily, it’s clear that optimizing inventory is crucial—yet nearly half of companies still grapple with inaccuracies, inefficiencies, and costly stockouts that threaten their bottom line.

Inventory Accuracy & Data Management

Just 35% of businesses feel confident in their inventory forecast accuracy.
Inventory accuracy levels are only around 63% on average across industries.
48% of small to medium-sized retailers experience difficulty in accurate inventory tracking.
Inventory errors can lead to lost sales ranging from 3% to 10% annually.
Up to 70% of inventory data in companies can be inaccurate or outdated.
The implementation of automated inventory systems has been shown to improve order accuracy by 99.5%.
Approximately 70% of supply chain delays are caused by inaccurate or incomplete inventory data.
The average number of stock-keeping units (SKUs) in a major retail chain is over 30,000.
Businesses that implement RFID technology experience a 98% accuracy rate in inventory tracking.
Around 80% of inventory data in companies is collected manually, leading to higher error rates.

Inventory Accuracy & Data Management Interpretation

With only a third of businesses confident in their inventory forecasts and nearly 80% relying on manual data collection, the reality is clear: outdated and inaccurate inventory data not only hampers sales and delays supply chains but also underscores the urgent need for automated, RFID-driven solutions to turn inventory chaos into clarity.

Market Size & Growth

Global inventory management market size was valued at USD 10.63 billion in 2021 and is expected to grow at a compound annual growth rate (CAGR) of 6.4% from 2022 to 2028.
The global RFID inventory tracking market was valued at approximately USD 2.29 billion in 2020 and projected to grow.
The global inventory management software market is expected to reach USD 10.23 billion by 2027, growing at a CAGR of 14.9% from 2020 to 2027.
Use of machine learning algorithms in inventory management is anticipated to grow by over 50% in the next five years.
The use of drone technology for inventory counting in warehouses is expected to increase by 25% annually.

Market Size & Growth Interpretation

As inventory management evolves into a high-tech battleground of RFID tags, AI algorithms, and drone surveillance, the global market’s steady ascent—projected to surpass $10 billion and accelerate at double digits—underline that in the race to optimize stock, it’s those who innovate fast who truly hold the inventory of the future.

Operational Efficiency & Challenges

43% of companies say inefficient inventory management has caused stockouts and oversupply problems.
Retail inventory shrinkage due to theft, fraud, or administrative error costs U.S. retailers over $50 billion annually.
The average warehouse holds approximately 30% more inventory than is needed for daily operations.
52% of inventory managers report that they regularly face challenges in maintaining optimal stock levels.
The e-commerce sector’s inventory turnover ratio is approximately 4.5, indicating the number of times inventory is sold and replaced per year.
The cost of holding inventory includes warehousing, obsolescence, depreciation, and insurance, which can total up to 25-30% of inventory value annually.
40% of manufacturing companies report that inventory inaccuracies delay production schedules.
The retail industry has a typical inventory turnover rate of roughly 5 to 8 times per year.
Implementing just-in-time (JIT) inventory systems can reduce inventory levels by up to 40% but requires precise demand forecasting.
Inventory metrics such as turnover ratio, gross margin return on investment (GMROI), and days of inventory are critical for assessing supply chain health.
The average inventory-to-sales ratio in the manufacturing sector is approximately 1.4, indicating inventory levels relative to sales.
62% of warehouses are manually managing inventory, which can lead to errors and inefficiencies.
The use of automated inventory management systems can reduce stockouts by up to 80%.
30% of inventory in retail stores is often dead stock that does not generate revenue.
The average supply chain carries about 43 days’ worth of inventory as safety stock.
Companies can reduce their inventory holding costs by 10-15% annually through improved data accuracy and automation.
Inventory shrinkage is responsible for approximately 1.4% of sales loss in retail.
The average lead time for replenishing inventory in retail is around 10 to 14 days.
Around 20% to 25% of inventory is typically lost due to spoilage or obsolescence in the food and beverage industry.
Approximately 55% of companies use manual processes for inventory management, despite the availability of digital solutions.
Just 25% of companies feel their inventory management systems are fully integrated across departments.
Inventory optimization can help reduce excess stock by up to 25-30%.
45% of manufacturers report stockouts affecting their production plans.
The average age of inventory in warehouses is around 75 days.
Inventory turnover rate varies by industry, with high-tech manufacturing averaging around 5.4 times per year.
E-commerce businesses with real-time inventory tracking see a 15-20% decrease in stockouts.
Inventory turnover ratio is a critical key performance indicator (KPI) for assessing inventory efficiency, with optimal ratios varying between 4 and 6 in most industries.
During the holiday season, inventory shrinkage can increase by up to 5%, leading to significant revenue loss.
Poor inventory management can lead to an increase in working capital requirements by up to 20%, affecting overall financial health.
Companies that adopt advanced inventory analytics see a reduction in excess inventory by about 20%, freeing up capital.
The use of barcoding in warehouses increases operational efficiency by approximately 25-30%.
Inventory buffer stock typically accounts for 10-15% of total inventory to mitigate demand variability.
The average cold storage inventory in the food industry is held for about 12 days.

Operational Efficiency & Challenges Interpretation

Despite extensive technological advancements, over half of companies continue to grapple with inventory mismanagement—causing stockouts, overstock, and billions in losses—highlighting that in the world of supply chains, being digitally savvy isn't enough if you're still manually counting beans.

Supply Chain & Cost Impacts

22% of supply chain costs are attributed to excess inventory.
Inventory carrying costs globally are estimated to be around $1.1 trillion annually.
About 65% of companies have experienced disruptions in their supply chain due to inventory shortages during the pandemic.
During the holiday season, retailers often increase inventory levels by 20-30% to meet demand.
During inflationary periods, companies often increase safety stock levels by as much as 20-25% to buffer against price volatility.
The cost of inventory errors can result in loss of up to 10% of a company’s gross profit.
The average lead time for new product launches impacting inventory levels is 6 to 9 months.
For every dollar invested in inventory management technologies, companies see an average return of $4.50 in cost savings.
Approximately 45% of companies report that inventory costs are a significant factor in their overall supply chain expenses.

Supply Chain & Cost Impacts Interpretation

With inventory costs soaring to over a trillion dollars annually and nearly a quarter of supply chain expenses tied to excess stock, it's clear that a misstep in inventory management can turn a company's profit into a costly holiday for inefficiency, especially when disruptions and inflation-induced safety stock inflate both stock levels and stress—but leveraging smarter tech might just turn the tide and trim those staggering figures.

Technological Adoption & Innovations

Just 29% of companies use advanced predictive analytics to optimize inventory levels.
58% of companies adopt cloud-based inventory management solutions to improve scalability and accessibility.
64% of retail companies report high or very high interest in adopting blockchain technology for inventory transparency.
Over 30% of companies plan to invest in AI-driven inventory management solutions in the next three years.
Approximately 60% of manufacturers use ERP (Enterprise Resource Planning) systems to manage inventory.
90% of companies aim to implement more automation in their inventory management processes over the next five years.

Technological Adoption & Innovations Interpretation

Despite a majority eyeing automation and emerging technologies like AI and blockchain, only a small fraction are currently leveraging advanced predictive analytics, revealing a cautious yet forward-looking approach to transforming inventory management from traditional to tech-savvy.