--- title: "10 Shocking Inventory Management Statistics | Capterra" description: "The inventory management space is shifting. The future is mobile and streamlined, but things still have a ways to go, according to these statistics." source_url: "https://www.capterra.com/resources/inventory-management-statistics/" page_type: "article" language: "en" --- # 10 Shocking Inventory Management Statistics By Andrew Marder Andrew Marder Andrew Marder is a former Capterra analyst. [See bio & all articles](https://www.capterra.com/resources/author/amarder/) Published June 17, 2015 3 min read Table of Contents - [Conclusion](#conclusion) The U.S. economy is on the upswing, but a huge amount of cash is still tied up in inventory. American businesses have yet to get on the [inventory management](https://www.capterra.com/inventory-management-software/) boat, leading to errors, lost opportunity, and increased costs. This article discusses 10 statistics related to inventory management. If you need free solutions for your business, these [free inventory management software](https://www.capterra.com/inventory-management-software/s/free/) might be what you are looking for. These ten statistics show just how inventory management is being overlooked in the US. 1\. A shocking amount of capital is tied up in inventory. **Inventory along with accounts receivable and accounts payable has tied up $1.1 trillion in cash** – equivalent to 7% of the U.S. GDP. (Source: [REL](http://www.relconsultancy.com/working-capital/2013-US-Working-Capital-Survey.pdf)) >> [**Tweet this**](http://ctt.ec/8Zy1k) 2\. While inventory as a percentage of sales is down from its highs, it’s on the rise from its 2011 low. **U.S. retailers are currently sitting on about $1.43 in inventory for every $1 of sales they make.** (Source: Stifel via [SCDigest](http://www.scdigest.com/assets/newsviews/15-04-23-1.php?cid=9231)) >>[**Tweet this**](http://ctt.ec/VmkGt) 3\. The number of companies without a robust inventory management system in place is shocking. **46% of SMBs either don’t track inventory or use a manual method.** (Source: [Wasp Barcode](http://www.waspbarcode.com/small-business-report)) >>[**Tweet this**](http://ctt.ec/Pqyth) 4\. Even though shipping and manufacturing are getting more efficient and faster, companies are still holding on to more stuff. **“Days inventory outstanding” – the amount of inventory on hand based on average sales per day – has risen 8.3% over the past five years.** The highest sector is spirits, at 188 and the lowest is restaurants at 7. (Source: REL via [SCDigest](http://www.scdigest.com/assets/FirstThoughts/14-07-31.php?cid=8343)) >>[**Tweet this**](http://ctt.ec/kBlEZ) 5\. Warehouse space is still dirt cheap, compared to other buildings. **The average cost per square foot of warehouse and distribution centers in the U.S. is $5.08.** (Source: [Colliers International](http://www.colliers.com/en-us/insights/market-news/2014-q4-na-industrial-report#.VXHM5M9Viko)) >>[**Tweet this**](http://ctt.ec/faW4V) 6\. More and more businesses are increasing the range of products they stock in order to meet consumer “long tail” demands. **54% of warehouses plan to expand the number of inventory SKUs carried over the next five years.** (Source: [Motorola](https://secure.rm.motorolasolutions.com/forms/Future-of-Warehouse-Survey_2013/?cid=2954&mls=ws)) >>[**Tweet this**](http://ctt.ec/h3_zg) 7\. Retailers are trying to shift the burden of inventory from warehouses to stores. For example, **15% of Target’s online purchases are marked for pick up in-store.** (Source: [Target](https://corporate.target.com/article/2015/05/keri-jones-perspectives-RFID)) >>[**Tweet this**](http://ctt.ec/mx8ef) 8\. Almost everyone understands the value of working with mobile devices to increase speed and operational efficiency. **67% of warehouses plan to use mobile devices to manage inventory.** (Source: [Motorola](https://secure.rm.motorolasolutions.com/forms/Future-of-Warehouse-Survey_2013/?cid=2954&mls=ws)) >>[**Tweet this**](http://ctt.ec/ddcm8) 9\. The value of inventory tracking isn’t just in dollars and cents. **Using barcodes on medication reduced errors in administration by 41.4% at an academic medical center.** (Source: [New England Journal of Medicine](http://www.ncbi.nlm.nih.gov/pubmed/20445181)) >>[**Tweet this**](http://ctt.ec/6b7p1) 10\. Inventory and warehouse management is increasing in value and relevance. **The number of warehouses in the U.S. has risen 6.8% over the last five years.** (Source: [Bureau of Labor Statistics](http://data.bls.gov/timeseries/ENUUS000205493?data_tool=XGtable)) >>[**Tweet this**](http://ctt.ec/wW24U) ## Conclusion The move away from pen-and-paper inventory management is a huge step toward success. With the growth of RFID systems and alternative inventory management programs, companies are able to take their inventory processes back. You can find alternatives to software such as NetSuite and Quickbooks Desktop Enterprise to get the best solutions for your business. Check out Capterra’s full listings, if you’re looking for [inventory management software](https://www.capterra.com/inventory-management-software/) and need some help deciding. ## Capterra's 2026 Software Buying Trends Report ### Download our 2026 Software Buying Trends Report to see how successful software adopters avoid disappointment and how your business can, too. * * * Looking for Inventory Management software? Check out Capterra's list of the [best Inventory Management software](https://www.capterra.com/inventory-management-software/) solutions. ### Was this article helpful? * * * ## About the Author [### Andrew Marder](https://www.capterra.com/resources/author/amarder/) Andrew Marder is a former Capterra analyst. ### RELATED READING - [Best Vacation Rental Software in 2026: My Picks Based on 1,497 Capterra Reviews](https://www.capterra.com/resources/vacation-rental-software/) - [Resource Management Software Pricing in 2026: What Are Buyers Actually Paying?](https://www.capterra.com/resources/resource-management-software-pricing-models/) - [Workflow Management Software Pricing in 2026: What Are Buyers Actually Paying?](https://www.capterra.com/resources/workflow-management-software-pricing-models/) - [Clio vs. SmartAdvocate: Which Fits Your Law Firm's Case Management Needs?](https://www.capterra.com/resources/clio-vs-smartadvocate-reviews-comparison/) - [My 9 Best Construction Management Software Picks for 2026, Based on 7,903 Capterra Reviews](https://www.capterra.com/resources/best-construction-management-software-reviews-analysis/) - [Best Salon Booking Software in 2026: My Top Picks, Based on 2,015 Capterra Reviews](https://www.capterra.com/resources/salon-booking-software-reviews-analysis/) - [My Picks for the Best 10 Resource Management Software Based on My Analysis of 7,805 Capterra Reviews](https://www.capterra.com/resources/best-resource-management-software-reviews-analysis/) - [My Picks for the Best 8 Visitor Management Software Based on My Analysis of 522 Capterra Reviews](https://www.capterra.com/resources/best-visitor-management-software-reviews-analysis/) - [My Picks for the Best 10 Workflow Management Software Based on My Analysis of 4,007 Capterra Reviews](https://www.capterra.com/resources/best-workflow-management-software-reviews-analysis/)