Turnover rate – what is it and why is it so important?
One of the many advantages of an RFID-based logistics solution for your work clothes is that it helps to increase your clothes turnover rate. Depending on the solution used, the turnover rate can increase by up to 30%.
But what does that mean? And why is it good? Let’s explore the concept.
Turnover rate is the number of times a year a laundry item is washed. It’s the rate at which work clothes circulate between laundry and use. We use this formula to calculate an average of the turnover rate: the number of items delivered in one year divided by the total number of clothing items owned (delivered item / total number = turnover rate).
The faster the turnover rate, the faster the work clothes are circulated = they are washed more often.
On average, work clothes are washed only 10 times a year. For the rest of the time, they are not being used. They are on the shelf and collecting dust. Dusty clothes lead to a deterioration of hygiene. That’s why it’s important that clothes don’t lie unused.
Affects the economy
If you have a high turnover rate of work clothes, it helps you keep the volume of the textile stock low. In turn, this means a lower investment for you in the number of garments. Imagine you can have 50 garments, instead of 100 garments, that circulate between laundry and usage, but you can still cover the same staffing needs? That’s a bargain!
Affects the environment
For the same reason that a high turnover rate has a positive impact on the economy, it also has a positive impact on the environment. Almost half of a garment’s environmental impact occurs when it is manufactured. Therefore, it is important not to manufacture or buy more garments than necessary and to make sure that the garments are used as often as possible.
Now, the next time you read something about the turnover rate, you’ll know what it’s all about.