Operations
Rate of Inventory Sold and Replaced
Inventory turnover measures how many times a company sells and replaces its inventory in a given period. Higher turnover means less cash trapped in unsold goods.
Why It Matters
Slow inventory turnover ties up cash, increases storage costs, and leads to markdowns. Fast turnover means your assortment matches demand and your supply chain is responsive.
How Novastra Helps
Novastra rebuilds demand forecasting, rationalizes SKU counts, and designs procurement systems that match buying to selling velocity.
Cost of Goods Sold / Average Inventory
Framework Phase
5
Re-engineer
Rebuild the machine while it runs