The disclosed embodiments provide a system for detecting and managing inefficiency in local storage. During operation, the system obtains a first snapshot of data in local storage of a computer system, wherein the first snapshot comprises a first set of data elements in the local storage at a first time. Next, the system applies a compression technique to the first snapshot to obtain a first set of inefficiency metrics for the first set of data elements. The system then outputs the first set of inefficiency metrics with additional attributes of the data to improve management of inefficiency in the data.