What is meant by turnover rate?

The turnover rate is one of the key profitability indicators used to assess the efficiency of logistics. It reflects the overall inventory turnover and is considered a top-level KPI in logistics performance measurement. Specifically, inventory turnover is a relative metric that expresses the relationship between revenue and average inventory levels. Given the high proportion of material costs in total production costs, turnover rate has a decisive influence on business success. An increasing turnover rate means a shorter average storage duration and lower logistics costs, particularly related to capital tied up in inventory.