How can users identify excess inventory situations in Dynamics 365?

Identifying excess inventory situations is crucial for effective inventory management, and inventory aging reports play a significant role in this process. These reports provide insights into how long specific inventory items have been held in stock, highlighting items that have not moved for a considerable period. This information is essential for businesses to assess which products are becoming obsolete or slowing down sales, allowing them to take corrective actions, such as discounting, promotions, or inventory clearance strategies.

While sales forecasting reports can help predict future demand, they do not directly indicate current excess or obsolete inventory levels. Supplier performance reports focus on the efficiency and effectiveness of suppliers rather than inventory levels. Customer feedback analysis can inform product improvement and sales strategy, but it does not directly relate to identifying excess inventory situations. Therefore, inventory aging reports are the most relevant tool for users to identify excess inventory within Dynamics 365.