Inventory turnover
Σύντομη απάντηση
How many times stock is fully sold and replenished in a period - a measure of capital efficiency.
Βασικά συμπεράσματα
- High turnover - fast sales, capital freed, but stockout risk
- Low turnover - overstock, locked capital, expiry/obsolescence risk
What inventory turnover is
Inventory turnover shows how many times stock is sold and renewed in a period. Common formula: Cost of goods sold / Average inventory. High turnover = efficient capital; low turnover = money locked in goods.
How to interpret it
- High turnover - fast sales, capital freed, but stockout risk
- Low turnover - overstock, locked capital, expiry/obsolescence risk
The benchmark varies widely by industry (fast FMCG vs slow equipment).
Link to cash flow
Turnover is a direct cash-flow lever: each extra day of stock means locked capital. Reducing DIO (days inventory outstanding) frees money without lowering sales, if done per SKU.
How CRMconnect helps
Combining sales from all channels with WMS stock, CRMconnect computes turnover per SKU, identifies slow movers (dead stock) and fast movers, and optimises replenishment to maximise turnover without stockouts.
Πραγματικό παράδειγμα
A distributor with average 4x/year turnover had 30% of capital locked in SKUs turning below 1x. Per-SKU analysis in CRMconnect enabled liquidating dead stock and rebalancing purchasing; turnover rose to 6.5x, freeing ~220,000 RON.
Ενημέρωση:
Συχνές ερωτήσεις
How is inventory turnover calculated?+
Turnover = Cost of goods sold (COGS) / Average inventory over the period. It can also be expressed in days: DIO = 365 / turnover = how many days goods stay in stock on average.
Is high turnover always good?+
Not necessarily. Too high can mean insufficient safety stock and stockouts. The goal is balance: good turnover without compromising service level.
How do I improve turnover without stockouts?+
By analysing per SKU, not globally: cut stock on slow movers, keep a buffer on fast movers, and sync replenishment with real demand across all channels.
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Σχετικοί όροι
Dead stock
Goods unsold for a long period that lock capital and space, with little prospect of selling at normal price.
LogisticsSafety stock
Extra buffer inventory held to prevent stockouts caused by demand or supply variability.
ΟικονομικάCash flow
The actual movement of money in and out of a company over a period - a measure of liquidity, not profit.
LogisticsSlotting
Strategically assigning products to warehouse locations based on rotation, size and affinity to minimise picking effort.