What is Inventory Turnover?

Definition: Inventory turnover is a key metric in warehouse management that indicates how often inventory is fully sold and replenished within a given period. It provides insights into the efficiency of inventory flows and demand alignment.

Why is Inventory Turnover Important?

High inventory turnover reflects a fast goods rotation and indicates effective warehouse management. This helps avoid overstocking and reduce storage costs. Conversely, low inventory turnover may signal inefficient inventory handling or low demand.

Businesses can leverage this metric to optimize their warehouse strategies, lower costs, and enhance customer satisfaction through better product availability.