SKU Velocity Metric

The rate at which products are selling over time.

• Identify fast and slow-moving products for inventory optimization
• Plan product assortment and merchandising strategies
• Optimize location layout and picking processes
• Guide purchasing and replenishment decisions

• Good performance: Velocity aligns with business expectations and margins
• Potential issues: Very low velocity indicates potential obsolescence
• Benchmark guidance: Varies significantly by product category and business model

• High-velocity items require frequent replenishment and prime locations
• Low-velocity items may need promotional support or discontinuation
• Seasonal products show expected velocity variations

Formula: 

SUM(inventoryQuantity.qty where type = {SALE_TYPE}) / number_of_days grouped by SKU within the selected time period

Configurable elements:

• SALE_TYPE: Type definitions for inventory quantity sales (default: SALE)