This is one of the most commonly used indicators in warehouse management and reflects the global efficiency of the logistics chain, from supplier to customer.
The calculation of the indicator is obtained by comparing sales in a given period with the average stock in the same period.
From the correlation between time (usually one year) and the availability of goods, a lot of useful information is obtained to optimize the entire logistic process, such as how often the stock of a certain product runs out and how often reorders are planned.
Thanks to this index it is possible to keep the stock period under control, i.e. how long products remain on the shelves before being distributed or relocated, but also to establish a hierarchy between the goods with the highest turnover rate and those with the highest stock, speeding up logistics and reducing costs.
The warehouse rotation index, in fact, offers a series of information that favours better operational efficiency, because it allows strategic actions to be taken, for example:
The inventory turnover index is just one of the elements that need to be evaluated to understand the state of the logistics area: to find out how to reorganize processes and increase performance contact us now and request LogiCheck, our audit that allows you to understand what and how can be done to make your warehouse more efficient.
