Inventory velocity, also known as inventory turnover, refers to the frequency at which a company sells and replenishes its inventory within a specific period, typically one year. It serves as a measure for brands to assess whether their stock levels are in line with demand. Ideally, a healthy inventory turnover rate falls between 2 and 4, indicating a balanced supply and demand relationship. A turnover rate lower than 2 suggests an excess of stagnant inventory, while a rate higher than 4 indicates a potential risk of stockouts. Additionally, inventory velocity refers to the speed at which products flow through the supply chain, from sourcing raw materials to customer delivery and returns. Accelerating this flow offers competitive advantages by reducing inventory requirements, improving responsiveness to market shifts, minimizing transactional friction, and mitigating errors. However, maintaining control and oversight becomes crucial to prevent a high-speed supply chain from becoming uncontrollable.