Quick Summary: Identify and classify New Items to understand why they initially appear as unclassified on the Dashboard and manage them to ensure accurate KPI contributions.
What Are New Item?
New Items represent products that have entered your system recently but lack sufficient data for classification. Because these items have limited sales history and setup information, the system cannot yet assign them a more suitable stock status like OK or Excess.
By properly classifying or linking new items, you help the system predict demand more accurately and maintain balanced stock levels.
How New Items Are Identified
An item is classified as New when it meets the following conditions:
It is marked as a stocked item.
It has stock on hand or on order.
It has no minimum stock level.
It does not have a demand forecast.
It does not supply other locations.
It is not part of a bill of materials (BOM).
It is less than 12 months old in the system.
Because the item lacks forecasting data and history, the system cannot determine whether it is understocked or overstocked, so it remains in the New category until it can be classified into another status.
App Classification vs ERP New Item Categories
The app uses its own logic to classify New Items based on data availability and stock behavior. This classification is independent of any "New Item" category or flag that may exist in your ERP system.
If your ERP includes a category or grouping that marks items as new, you can use it for reporting purposes. For example, users can apply this ERP category as a filter in the Full Stock Holding report to analyze items based on their own business definition of “new.” However, the Dashboard New status is always driven by the app’s internal classification rules.
Your Goal: Take Action to Classify New Items
The goal is to remove items from the New list by taking an appropriate action based on the item’s role in your business. Common actions include:
Make it non-stocked or obsolete: If you do not plan to keep the item in stock going forward.
Link it in a supersession: If the new item is a replacement for an older item.
Add a manual forecast: If it is a brand-new item, add a forecast based on your sales expectations.
Add it to a Bill of Materials (BOM): If the item is a component used to produce a finished good.
Set the source of supply: If the item is purchased centrally and supplied to other locations, set the source of supply at the sub-locations to the distribution center (DC).
Once sufficient information exists, the item will automatically transition out of the New status and into an appropriate category (e.g., OK, Stocked Out, or Excess).
How New Items Affect KPIs
Because New Items are not yet classified, they do not contribute to the accuracy of KPIs like Fill Rate or Stock Holding in a meaningful way.
However, their presence can inflate total stock value or distort the balance between healthy and unhealthy inventory.
Properly managing these items ensures that:
Fill Rate reflects true service performance.
Stock Holding and Stock Turns remain meaningful.
How To: Interpret Stock Statuses on the Dashboard
⚠️ Watchouts
Unclassified risk: Leaving items in the New category for extended periods can make performance metrics appear more stable than they are.
Forecast absence: Without a forecast, the system cannot recommend replenishment or detect potential stockouts.
💡 Tips
First classification: Once an item has been classified correctly, it will automatically drop off the New list and appear under its true status, such as OK, Excess, etc.
Cross-checks: Link new items to old ones via supersession whenever a product replacement occurs to preserve historical insight.
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