A recent Forbes article
reveals poor inventory management has caused retailers worldwide to loose $1.8 trillion
That might include you!
Proper inventory management is one of the most important parts of ensuring the longevity of your business. If you overstock on inventory, you risk wasting your cash flow- but if you don't carry enough stock, you risk running out of a product consumers love and losing out on potential revenue!
Measuring inventory days can help you manage this delicate tightrope.
Inventory days looks at the average time, in days, it takes for a business to turn stock into sales. This varies depending on industry: fast-moving consumer goods and perishables have much lower inventory days than companies selling larger products, such as apparel and luxury items.