Mastering Inventory Turnover: How to Prevent Dead Stock in Multi-Branch Retail

Working capital tied up in dead or slow-moving stock is one of the leading causes of cash flow failure among SME retailers and FMCG distributors.

What is Inventory Turnover Ratio?

Your inventory turnover ratio is calculated by dividing your Cost of Goods Sold (COGS) by your average inventory value during a given period. A higher ratio indicates strong sales and efficient purchasing, while a low ratio warns of overstocking or obsolescence.

Automated Shelf Reorder Points

Using Zynveo Cloud ERP, businesses set automated reorder thresholds based on historical velocity. When a stock item drops below a critical velocity index, automated purchase orders (GRNs) are queued for supplier approval, preventing costly stockouts on best-sellers.