Inventory Turnover Metrics: Understanding and Improving Stock Turnover Rates

By Alan Miklofsky | November 03, 2024

What is Inventory Turnover?:

Inventory turnover is a key metric that shows how often a retailer’s inventory is sold and replaced over a certain period. High turnover typically indicates strong demand, while low turnover may signal overstocking or product stagnation. Wholesale representatives who understand this metric can help retailers maintain optimal stock levels.

Improving Turnover Rates:

Improving inventory turnover can lead to better cash flow and reduced holding costs for retailers. Wholesale reps can assist by recommending high-demand products, suggesting seasonal promotions, or advising on order quantities to help retailers maintain efficient stock levels and increase turnover rates.

Adding Value with Turnover Insights:

Wholesale reps who provide retailers with turnover insights can support better inventory decisions. By analyzing turnover rates and identifying areas for improvement, wholesale representatives contribute to a more agile, responsive retail operation that aligns with customer demand.