SKU Velocity Metric
Essential knowledge
Intended Audience:
Business User
Author:
Movyn John
Changed on:
20 Oct 2025
Overview
Learn about the SKU Velocity Metric in Fluent Analytics
Key points
- High-velocity items require frequent replenishment and prime locations
- Low-velocity items may need promotional support or discontinuation
- Seasonal products show expected velocity variations
What it measures
The rate at which products are selling over time.
When to use this metric
- 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
How to interpret
- 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
Technical details
Formula:
SUM(inventoryQuantity.qty where type = {TYPE_SALE}) / number_of_days
grouped by SKU within the selected time period
Configurable elements:
- TYPE_SALE: Type definitions for inventory quantity sales (default: SALE)
