the amount of inventory stock which was wrongly produced

KPI Definition

Inventory Value Wrongly Procured, as a pivotal metric within the domain of supply chain Key Performance Indicators (KPIs), refers to the monetary worth of inventory items that have been acquired or procured erroneously, either in terms of quantity, specification, quality, or timing, resulting in misalignment with organizational requirements, operational objectives, or customer demand. This metric encompasses the financial value of inventory assets that do not meet the intended procurement criteria or fail to fulfill the expected purpose within the supply chain network. Inventory value wrongly procured serves as a critical indicator of procurement inefficiencies, supply chain mismanagement, or deficiencies in supplier management practices, which can lead to increased carrying costs, excess inventory levels, operational disruptions, and compromised customer satisfaction.

Business Value

This metric helps businesses analyses the amount associated with inventory that was wrongly procured