SKU Velocity refers to how quickly specific products (SKUs - Stock Keeping Units) move through a warehouse, from arrival to shipment. Think of it like tracking how fast different items sell and move out of the warehouse. It's an important measure in warehouses because it helps managers decide where to place items (fast-moving items need to be easily accessible), how much staff is needed, and how to organize the space efficiently. This concept is also sometimes called "inventory turnover rate" or "stock movement speed."
Improved SKU Velocity by 40% through strategic product placement in the warehouse
Analyzed SKU Velocity patterns to optimize picking routes and reduce fulfillment time
Created reports tracking SKU Velocity and Stock Movement to enhance inventory management
Typical job title: "Warehouse Managers"
Also try searching for:
Q: How would you use SKU velocity data to improve warehouse layout and operations?
Expected Answer: A strong answer should explain how they would analyze movement patterns to place fast-moving items in easily accessible locations, adjust staffing based on busy periods, and optimize picking routes to reduce travel time.
Q: How do you balance SKU velocity with other warehouse management priorities?
Expected Answer: Look for answers that discuss considering storage space, labor costs, seasonal changes, and how to maintain efficiency while keeping both fast and slow-moving items organized effectively.
Q: What metrics do you use to track SKU velocity?
Expected Answer: Candidate should mention tracking time from receipt to shipment, number of units moved per day/week/month, and how they use this information to make practical warehouse decisions.
Q: How do you handle seasonal changes in SKU velocity?
Expected Answer: Should discuss planning for busy seasons, adjusting storage locations based on expected demand, and maintaining flexible space allocation.
Q: What is SKU velocity and why is it important?
Expected Answer: Should be able to explain that it measures how quickly products move through the warehouse and why this matters for organization and efficiency.
Q: How do you identify fast-moving versus slow-moving items?
Expected Answer: Should demonstrate basic understanding of tracking product movement and using simple reports or systems to monitor which items move quickly or slowly.