// ROBOTICS AND SMART FACTORIES TERM
Inventory Turnover
Inventory turnover is a financial ratio that measures how many times a company has sold and replaced its inventory during a specific period.
TECHNICAL DEFINITION
Inventory turnover is a financial efficiency ratio calculated by dividing the cost of goods sold by average inventory, indicating how many times a company has sold and replenished its entire inventory stock within a given period.
BACKGROUND
Inventory or stock is a quantity of the goods and materials that a business holds for the ultimate goal of resale, production or utilisation.
READ MORE ON WIKIPEDIASYNONYMS & ALIASES
- Stock turn
- inventory turns
- sales-to-inventory ratio
- stock rotation
USAGE NOTE
A high inventory turnover generally indicates efficient sales and inventory management, while a low turnover might suggest overstocking or weak sales.
DEVELOPERS
Organizations developing technology related to Inventory Turnover.
A global leader in ERP and supply chain software, SAP offers solutions like S/4HANA and Integrated Business Planning that provide real-time inventory visibility, demand forecasting, and production planning tools essential for optimizing inventory turnover in manufacturing environments, aligning with Industry 5.0's data-driven approach.
Oracle provides a comprehensive suite of cloud applications, including ERP, SCM, and manufacturing solutions. Their inventory management, demand planning, and logistics tools help manufacturers improve inventory accuracy, reduce carrying costs, and accelerate inventory turnover.
Specializing in digital supply chain and fulfillment solutions, Blue Yonder's AI/ML-driven platforms for demand forecasting, inventory optimization, and warehouse management directly enable manufacturers to enhance inventory turnover by precisely matching supply with fluctuating demand.
A prominent provider of supply chain and omnichannel commerce solutions, Manhattan Associates offers Warehouse Management Systems (WMS) and Inventory Optimization solutions that help manufacturers achieve precise inventory control, optimize stock levels, and improve the speed and efficiency of inventory movement, thereby boosting turnover.
Known for its concurrent planning platform, Kinaxis allows manufacturers to synchronize demand, inventory, and supply planning in real-time, providing the agility and visibility needed to proactively manage inventory levels and significantly improve turnover efficiency, crucial for Industry 5.0 resilience.
Infor delivers industry-specific cloud software, including ERP and supply chain management for manufacturing. Their solutions offer advanced inventory control, demand planning, and production scheduling capabilities designed to optimize stock levels and accelerate inventory turnover for complex manufacturing operations.
E2open provides a network-based platform for connected supply chains. Their applications for demand sensing, inventory optimization, and collaborative planning help manufacturers gain end-to-end visibility and control over their inventory, leading to improved turnover rates and reduced waste in line with Industry 5.0 principles.
Microsoft's Dynamics 365 Supply Chain Management offers a comprehensive ERP solution with robust capabilities for manufacturing, warehouse management, and inventory control. It helps businesses streamline operations, gain insights into inventory performance, and optimize stock levels to improve turnover efficiently.