Value Proposition: Instead of reviewing inventory and sales separately, this template consolidates them into a single file that provides you with the inventory sell-through rate for each SKU over a specified period, along with ready-made “decision lists” before excess stock becomes stagnant or before stockouts occur.

Practical Definition: Sell-through for inventory is a metric used in retail/e-commerce to assess
“how much of the available inventory for the period has actually been sold,” thus helping you in analyzing turnover speed
and interpreting product performance analysis in a trackable numerical format for ERP reports.

In 20 seconds: What will you get?

• Calculation of sell-through rate by SKU/category/channel/store with a customizable reference period.
• Turnover Speed Analysis: Ranking products from fastest to slowest with clear thresholds.
• Linking sales to inventory via “Available for Sale” instead of comparing disparate figures.
• Reorder and Clearance Decision Lists: Items recommended for reorder + items recommended for clearance/markdown (according to your company policy).
• Inventory Sell-through Analysis by categories shows where inventory is “moving” and where cash is “tied up.”
• Ready-made exceptions: SKUs with no sales, SKUs with no stock but existing sales, missing receipts, illogical dates.
• 1-page executive summary: Top/Bottom performers + impact of proposed decisions (quantities) rather than general statements.

The button is linked to the outputs: Sell-through Dashboard + Velocity Ranking + Reorder/Clearance Lists + Exceptions.

Suitable for

• Category / Merchandising (with Finance): Reading product performance and determining what to reorder and what goes into markdown.
• Inventory/Cost Accountant: Logical justification for clearance/discount decisions linked to trackable turnover indicators.
• Supply Chain Planner: Transforming sales and stock data into decision lists (Reorder vs Hold vs Clearance).

Not Suitable for

• If there are no receipt data or if “Available for Sale” cannot be determined for the period — the sell-through will become uninformative.
• If you need real-time BI connected directly to the system — this is an Excel tool relying on periodic exports.

Without the Template / With the Sell-through for Inventory Template (Quick Comparison)

Before Use: 5 Symptoms That Inventory Decisions Are Made Without Turnover Indicators

• You reorder because “demand is high” while the item is actually not achieving appropriate turnover compared to available inventory.
• You start markdowns too late (the season is over/inventory has increased) because you do not clearly see the inventory sell-through rate.
• Stockouts occur repeatedly on fast-moving items without knowing “is the problem low stock or turnover speed higher than expected.”
• There is no single file proving available-for-sale for the period, thus any comparison between sales and inventory is incomplete.
• During management review: “Why is this item still here?” and there is no clear ranking of performance.

How Sell-through for Inventory Works Practically from Export to Decision List?

The operation begins by defining a reference period (e.g., the last 4 weeks/month/season), then entering sales of SKU units during the period,
and linking it to the inventory available for sale during the same period via the concept of Available for Sale (beginning balance + receipts during the period).
After that, the sell-through rate is calculated, and turnover speed ranking is generated with “decision rules” based on thresholds that you set (not default figures).
The final output is not a theoretical explanation, but actionable SKU lists: what to reorder, what to stop purchasing, and what goes into clearance/markdown.

Implementation Method (3 Steps)

Step 1: Preparation and Report Collection

• Sales of SKU units for the period (from POS/ERP/E‑com) with dates.
• Beginning on-hand inventory (or snapshot at the start of the period).
• Receipts during the period (PO receipts / GRN / Inventory receipts).
• (Optional) Categories/Brands/Channels + Price/Margin to expand product performance analysis.

Step 2: Linking and Calculation (Available for Sale → Sell-through)

• Unified mapping for SKU (and channel/store if applicable).
• Calculate Available for Sale = Beginning Inventory + Receipts for the period.
• Calculate Sell-through = Units Sold / Available for Sale with documentation of the equation definition in Assumptions.
• Run checks: sales without available stock, available stock without sales, missing receipts, dates outside the period.

Step 3: Performance Dashboard + Decision Lists + Archiving

• Dashboard: Sell-through by SKU/Category/Channel.
• Velocity Ranking: Ranking of fastest/slowest items + classification of “Fast/Medium/Slow” based on thresholds.
• Decision Lists: Reorder Candidates / Hold & Monitor / Clearance Candidates.
• Archive snapshot and inputs for the period + output copy, as a reviewable decision guide.

Product Components (Clear Inventory)

1. Sales Loader (Units Sold)
   • Practical Purpose: Input Units Sold by SKU (and channel/store) for the reference period.
   • When to Use: Weekly/Monthly or for each season/campaign.
   • Resulting Evidence: A unified sales file linked to the POS/ERP report.
2. Inventory Snapshot + Receipts Loader (Available for Sale)
   • Practical Purpose: Proving “Available for Sale” for the period (balance + receipts).
   • When to Use: With every Sell-through analysis cycle.
   • Resulting Evidence: Available-for-sale tab with its sources (Snapshot/Receipts).
3. Sell-through Engine (Core Calculation)
   • Practical Purpose: Calculate the sell-through rate based on a single fixed definition within the company.
   • When to Use: Immediately after data entry.
   • Resulting Evidence: A traceable Sell-through table per SKU for inputs.
4. Velocity Analysis (Turnover Speed Analysis)
   • Practical Purpose: Rank items by turnover speed and show performance compared to category/channel.
   • When to Use: Before reorder decisions or the start of markdowns.
   • Resulting Evidence: Ranking + Segmentation (Fast/Medium/Slow) based on thresholds.
5. Product Performance Dashboard (Product Performance Analysis)
   • Practical Purpose: Display SKU and category performance: Sell-through, units sold, available for sale, contribution of each category.
   • When to Use: In Category/Finance meetings and executive summaries.
   • Resulting Evidence: Dashboard with drill-down + 1-page summary.
6. Decision Lists (Reorder and Clearance Decisions)
   • Practical Purpose: Transform analysis into actionable SKU lists: Reorder / Hold / Clearance.
   • When to Use: Weekly for fast-moving items + monthly for review + at the end of the season.
   • Resulting Evidence: Decision lists + reason for each classification (Sell-through + available + sales).
7. Exceptions Log (Exceptions Record)
   • Practical Purpose: Identify data issues that disrupt the indicator (sales without stock/receipts missing/mapping).
   • When to Use: Before approving any dashboard or sending a summary to management.
   • Resulting Evidence: Exceptions log with processing status (Open/Fixed).
8. Assumptions & Governance (Definitions and Limits)
   • Practical Purpose: Document the definition of sell-through and classification limits (thresholds) and reference period.
   • When to Use: First run and then reviewed when policy/seasonality changes.
   • Resulting Evidence: Assumptions page that can be signed/approved internally.

What Should Be Included in the Delivery?

• Main Excel File containing tabs: Sales / Inventory Snapshot / Receipts / Mapping / Assumptions / Sell-through Calculation / Velocity / Decision Lists / Exceptions / Dashboard.
• Sales Import Template (SKU, Units, Date, Channel/Store optional).
• Inventory Snapshot Template (SKU, On-hand, Snapshot Date, Warehouse/Channel optional).
• Receipts Template (SKU, Units Received, Receipt Date) to prove available for sale for the period.
• Assumptions Page to define sell-through and limits for Fast/Medium/Slow and reference period.
• Concise Runbook: Import → Refresh → Review Exceptions → Approve Thresholds → Export Lists → Archive.
• Archiving Structure to secure snapshots and period summaries as decision evidence (Period packs).

After Implementation (Just Two Points)

• Operational Outcome for the Team: The inventory/category meeting shifts from “good/bad sales” to a numerical ranking of performance with ready Reorder/Clearance lists by SKU.
• Audit/Control Outcome: Any clearance or reorder decision can be traced back to the sell-through for the period + equation definition + snapshot + receipts (Traceable Decision Evidence).

FAQ — Questions Before Purchase

Is it compatible with any ERP / POS / E-commerce platform?

Yes, provided it can export sales units + on-hand snapshot + receipts during the period to Excel/CSV.

What is the definition of sell-through used in the template?

The default definition: Units Sold ÷ (Beginning Inventory + Receipts) for the period. This definition can be documented/modified in the Assumptions tab according to your company policy, but it is important to maintain a single definition.

Does it support multiple channels (online/stores)?

Yes, if the sales and inventory data carry channel/store information, sell-through can be extracted for each channel and then compared.

Can it be used for seasons and campaigns?

Yes, it is practically best for seasons: you define the campaign period and extract sell-through and turnover ranking before markdown or reorder decisions.

What is the minimum data required to get started?

Sales units + beginning inventory snapshot + receipts during the period. Without receipts/available-for-sale, the indicator becomes incomplete.

Does it replace Days on Hand or Turnover?

No. Sell-through measures “turnover against available for the period” while DOH/Turnover measures coverage/turnover based on consumption. They are often used together depending on the decision goal.

Does it provide automatic purchase orders?

No. It provides candidate lists for reorder/clearance with numerical reasons. PO execution or markdown is done through your company’s procedures and system.

Are there outputs that can be presented to management or saved as evidence?

Yes: Dashboard + Velocity Ranking + Decision Lists + Exceptions + Snapshot/Assumptions, all of which can be archived within the Period Pack.

Ready to Transform “Stock + Sales” into a Single Decision Indicator?

Outputs: Sell-through Rate + Velocity Ranking + Reorder/Clearance Lists + Exceptions.