Increasing the stock turnover rate

How can the stock turnover rate be increased?

The stock turnover rate for the storage of goods is a key figure that can be used to measure the movement of goods. It indicates how often the total stock or the stock of an item has turned over for a defined period (e.g. a year or month).

The lower the inventory turnover rate of a stock, the more capital is tied up, as goods are then stored for longer periods of time. It is therefore important for companies to maintain or increase the stock turnover rate as much as possible. The following can help:

• Reduction of the safety stock
• Shorter procurement times
• More attractive product range for customers so that demand increases
• Implementation of just-in-time deliveries

What are the advantages of increasing the stock turnover rate?

If goods are handled more frequently, the storage costs and the capital tied up in them are reduced. This brings financial benefits for companies, also because the product range can be turned back into cash more quickly through sales.