Don’t wait for the year-end write-off. These five metrics help you flag glass SKUs that are dragging you down.
In the glass distribution business, inventory is both asset and liability. Float glass, tempered safety panes, insulated units, laminated options—each comes in multiple thicknesses, dimensions, coatings, and edge finishes. The result? SKU explosion. And when inventory sits idle, the costs stack up: storage, shrinkage, insurance, and lost opportunity.
That’s why rationalizing low-turn glass inventory is essential. But it’s not just about “gut feel.” Smart distributors rely on hard metrics to separate the dead weight from the workhorses.
1. Inventory Turnover Ratio (ITR)
This classic metric measures how many times a SKU is sold and replaced over a set period—usually 12 months. For fast-moving SKUs like 1/4” clear annealed sheets, a healthy turnover might be 6–8x/year. For obscure tinted laminates, anything below 1x/year should raise concern.
Low ITR = excess inventory tying up cash without return. Use this to identify SKUs for deeper review.
2. Days on Hand (DOH)
DOH tells you how long your current inventory of a SKU would last at historical usage rates. A pane that hasn’t sold in 180+ days? That’s a red flag. If your typical lead time for replenishment is 2–3 weeks, there’s no need to hold 6 months of supply.
DOH can be especially useful when paired with forecast variance. Are you consistently overestimating demand for a product line?
3. Gross Margin Return on Inventory Investment (GMROII)
This metric balances volume with profit. A SKU that moves slowly might still earn its keep—if it has a high margin. But if you’re carrying obscure tinted glass that moves once every nine months and nets under 10% margin, GMROII will spotlight that inefficiency.
Aim for GMROII benchmarks aligned with your product category. Specialty coated glass should perform better than standard sheet goods due to price point and handling costs.
4. Line Item Fill Rate
Even if a glass SKU moves slowly overall, it might be critical for fulfilling full orders. If removing that SKU drops your fill rate from 96% to 80%, you need a mitigation strategy—such as a custom-order fallback or vendor drop-ship.
Line item fill rate shows how often you can complete orders without substitution or delay. It’s an operational lens on rationalization.
5. Customer Dependency Index
Track how many unique customers have bought a SKU in the last 12 months. If only one or two clients ever purchase a 6.4mm solar control panel, and they haven’t re-ordered in six months, it may be time to delist.
Pair this with customer forecast data if available—especially if they’re high-value accounts.
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Rationalizing low-turn inventory isn’t about cutting—it’s about reallocating. These metrics help glass distributors make informed decisions, prevent overstock, and free up capital for SKUs that truly earn their shelf space. In a business where every inch of warehouse space costs money, metrics turn inventory from guesswork into performance.
