The matrix can be analyzed with several key performance indicators; for example stock value, stock turnover ratio, percen- tage or value of stock-outs or warehousing costs can be used to determine possible main focus areas. The case company decided to analyze the data with two KPIs: service performance (Fig. 7) and stock-out costs (Fig. 8). The data was collected from three months period. Service performance was calculated on sales order line level per material according to customer’s requested delivery date. If the requested quantity could not be delivered by this date, the order line was considered to be late. Based on the criticality of the order (urgent for orders where equipment had broken or site visit was required and nonThe matrix can be analyzed with several key performance indicators; for example stock value, stock turnover ratio, percen- tage or value of stock-outs or warehousing costs can be used to determine possible main focus areas. The case company decided to analyze the data with two KPIs: service performance (Fig. 7) and stock-out costs (Fig. 8). The data was collected from three months period. Service performance was calculated on sales order line level per material according to customer’s requested delivery date. If the requested quantity could not be delivered by this date, the order line was considered to be late. Based on the criticality of the order (urgent for orders where equipment had broken or site visit was required and non was required and non-urgent for standard stock replenish- ment orders), there were two different costs determined for the stock-out.