Definition of obsolescence
The solution starts with getting agreement on the definition. When do we call a product or assortment exactly obsolete? Often there is the talk of obsolete stock, while in reality there is just too much stock. In that case, a product can still best meet the inventory criteria, which means that a place in the warehouse is just legitimate.
The final definition is specific to each company. You decide for yourself what you think is acceptable or not, depending on your market, customers, policy, and resources. For example, if you are a wholesaler who claims to have the widest range, you will be less likely to say goodbye to a slow mover. But when you have limited capital and limited warehouse space, you are forced to make stricter choices. Therefore, do not apply general guidelines, but pay sufficient attention to your definition of obsolescence. Topics that can be dealt with include issues such as start date, number of customers, development of sales and maximum stock levels in weeks, money or volume.
On the basis of such criteria you can determine your specific definition, for example: with us a product is out of order when it has been in stock for at least 6 months, fewer than 3 customers have been there before, the sales in the last 3 months were lower than the 3 months before and the current stock is more than 15 weeks, €10,000 or 1 pallet place.
Once you have defined a clear definition, you can run periodic reports and add nice pivot tables.