Spot winners and dead stock fast
Sell-through rate answers a simple question: of what you bought, how much actually sold. A high rate says the product is a winner and you may be losing sales by understocking it. A low rate says cash is frozen on the shelf.
Checked regularly, it turns your shelves into a ranked list: reorder the fast movers, discount or clear the slow ones, and stop reordering what does not move. It is one of the quickest reads on where your working capital is working.