# 10 Shocking Inventory Management Statistics | Capterra > 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: https://www.capterra.com/resources/inventory-management-statistics --- # 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 - [Help Desk Software for IT Support: Features and Benefits 1,300+ Users Value](https://www.capterra.com/resources/it-help-desk-software-features-benefits/) - [AI in Talent Management Software: The Bridge Between Recruiting and Retention](https://www.capterra.com/resources/ai-talent-management-software/) - [Switching Accounting Software: Common Risks to Avoid in 2026](https://www.capterra.com/resources/switching-accounting-software-problems-risks/) - [Why Projects Fail, and What Actually Helps Teams Fix Them](https://www.capterra.com/resources/4-steps-to-completely-recover-from-project-failure/) - [Checklist for SMBs: How to Choose the Right Customer Service Help Desk Software for Your Business Size](https://www.capterra.com/resources/choosing-customer-support-help-desk-software/) - [E‑Filing Taxes as a Small Business: Where Software Adds Value and When It’s Necessary](https://www.capterra.com/resources/efile-tax-software-small-business-guidelines/) - [How To Choose a Manufacturing Software With Confidence: Insights From Real Buyers](https://www.capterra.com/resources/manufacturing-software-buyer-insights-report/) - [What is CRM Software and What Does a CRM System Do?](https://www.capterra.com/resources/what-is-crm-software/) - [Payroll Software vs. HR Software: What’s the Difference](https://www.capterra.com/resources/payroll-vs-hr-software-difference/)