ROI, or Return on Investment, measures how effectively a business turns resources into measurable results. This guide explains what ROI means, how to calculate it, and why it matters for decision-making in inventory management. Drawing on insights from Investopedia, the Corporate Finance Institute, and our own experience, it explores both financial and operational benefits. You’ll learn how to interpret different ROI types, from annualised to social, and how to use them to assess long-term value. See how companies improved efficiency, visibility, and profitability through smarter, data-driven investment decisions.