Inventory turnover is a key indicator used in the retail supply chain to measure the effectiveness of stock management. A high stock turnover rate indicates efficient inventory management and suggests that a company is able to sell its inventory quickly, minimizing the risk of products obsolete or outdated.
On the other hand, a low stock turnover rate may indicate inefficiencies in inventory management, such as overstocking or slow-moving products. A low turnover rate may signal problems such as poor product assortment, demand problems or poor planning.
