📊 Understanding Your Inventory Value and Growth
Optiply provides accurate, purchase-related financial metrics on your dashboard and analytics pages to give you real-time insight into the capital tied up in your inventory. These metrics are updated nightly based on the latest data.
1. Inventory Value (Stock Value)
The Inventory Value (or Stock Value) is the total financial value of all inventory currently managed and purchased through Optiply. This figure is displayed on your Analytics Page.
Calculation and Definition
Optiply calculates this value by summing the cost of all available stock across all active, purchasable products:
Inventory Value = ∑ (Free Stock x Current Purchase Price)
Free Stock: Refers to the positive stock quantity available for sale.
Current Purchase Price: The cost of the product at its active supplier.
Inventory Inclusion Criteria (What is Counted)
For a product's value to be included in the total Inventory Value, it must meet the following criteria:
The product must be connected to an active supplier (not ignored).
The supplier must have a completed Lead Time and Reorder Period.
The product must not be disabled or an assembled product.
Only positive stock value is counted (products with negative stock are excluded from the positive value summation).
Note: The Inventory Value in Optiply will often differ from the value reported in other accounting systems because each system uses different criteria (e.g., Optiply excludes assembled products and only includes products actively linked to purchase planning).
2. Inventory Growth Percentage
The Inventory Growth Percentage shows the month-over-month change in your total Inventory Value. This metric is a key indicator of whether your strategy is successfully reducing unnecessary stock or if you are accumulating more capital in inventory.
This percentage is displayed on your Analytics page.
Calculation
The metric is calculated by comparing the current month’s Inventory Value to the value from the previous month:
Positive Percentage: Indicates an increase in the total capital tied up in inventory.
Negative Percentage: Indicates a decrease (reduction) in the total inventory value.
This value is updated nightly based on the latest inventory data.
❓ Frequently Asked Questions (FAQs)
Why is my Inventory Value in Optiply different from my accounting system?
Optiply calculates Inventory Value based strictly on positive Free Stock and active, purchasable products (excluding disabled or assembled items). Accounting systems often use different valuation methods (e.g., historical cost, FIFO) and include all physical stock, which leads to differences in the final total.
If a product has negative stock, is that value included in the Inventory Value?
No. Optiply only includes positive Free Stock in the calculation. Negative stock is treated as a liability and is excluded from the total Inventory Value displayed on the dashboard.
What is the Inventory Growth Percentage used for?
It is a health metric used to track the capital efficiency of your inventory strategy. A negative percentage shows you are successfully reducing the total capital tied up in stock, while a positive percentage shows the capital is increasing.
How often are the Inventory Value and Growth metrics updated?
Both the Inventory Value and the Inventory Growth Percentage are reevaluated and updated nightly based on the latest inventory movements and pricing data.
Why are assembled products excluded from the Inventory Value calculation?
Assembled products are excluded because their value is already represented by the sum of their individual component parts. Including the assembled product itself would lead to double-counting the inventory value.
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