What is Volume Velocity in Retail? Explained

Volume velocity, in the context of retail and supply chain management, pertains to the speed or rate at which products move through the distribution or supply chain. This metric measures the quantity of goods that are shipped, sold, or otherwise processed within a specific timeframe. Monitoring volume velocity is essential for retailers and supply chain managers to optimize inventory levels, enhance operational efficiency, and meet customer demand effectively. A high volume velocity indicates a smooth and efficient flow of products through the supply chain, contributing to overall operational success.