This KPI aims to calculate how many days of new vehicle supply you currently have in stock.
Example:
A) Days in Period = 90 B) Units Sold = 39 C) Units in Stock = 21 D) Sales:Stock Ratio = 1.86 (B ÷ C) E) Days Supply = 48 days (A ÷ D)
This illustration is showing that if you carry on selling at your current Sales:Stock ratio, then you have enough stock to continue trading for 48 days.
Discussion:
Vehicle supply varies considerably between franchise manufacturers, which is the main influence on this KPI.