DYK: Low inventory turn rates = higher inventory costs
Historically, the medical device industry's inventory turn rate is 3x per year. Some portions of the industry, like the greater orthopedics market, turn significantly more slowly. In contrast, the automotive industry's turn rate is 15x per year, and the retail industry turns approximately 8x per year. With billions of dollars of medical device inventory sitting idle in the field, a slight increase in turns could take millions of dollars out of the cost of healthcare.