Old stock in NetSuite refers to inventory items that have been in stock for an extended period and are not moving or selling as expected. This can include slow-moving, excess, or obsolete inventory.
Definition:
Slow-Moving Inventory: Items that have a low turnover rate and remain in stock for a long time without being sold.
Excess Inventory: Items that exceed the current demand and are more than what is needed for regular sales.
Obsolete Inventory: Items that are no longer in demand, often due to changes in market trends, technology, or customer preferences
Causes:
Poor Forecasting: Inaccurate demand forecasting can lead to overstocking of items that are not needed.
Faulty Design: Products that do not meet customer expectations or have design flaws may not sell well.
Imprecise Purchasing: Ordering too much stock without considering actual demand can result in excess inventory.
Outdated Inventory Management Systems: Lack of real-time inventory visibility and outdated systems can lead to poor inventory management.
Market Changes: Shifts in market trends, customer preferences, or technological advancements can render certain products obsolete.