Efficient Inventory Turns

摘要

It's easy to get excited about the next big trend. New product arguably drives the industry and drives customers into retail craft stores. But what about the stuff you already own? Whether it flies off the shelf or sits idle (a major buying boo-boo glaring at you), effectively managing your inventory is paramount to a profitable business. So what is that fancy-dancy term 'inventory turns' anyway? According to Computerworld Inc., a source for critical information needs of IT management at Fortune 1,000 companies, it is defined as a measure of how quickly a company replenishes its stock of materials or merchandise annually. The more product turns over, the less time inventory sits idle, which helps improve cash flow. "Businesses like to convert merchandise and materials into cash as quickly as possible," explains their Web site.