Blog

Factory Surplus 101: “New Old Stock” and How It Meets “New Equipment” Client Mandates

Why CROs should understand factory surplus

Some CRO contracts and client audits include language like:

• “new equipment only”
• “unused instrumentation”
• “manufacturer-sealed components”

That can create a bottleneck, because “new” often means:

• high capital cost
• long lead times
• delays to contract start

Factory surplus (often called New Old Stock) can be a strategic solution when you need “new/unused” status without waiting for standard supply chains.

Definitions (clear and audit-friendly)

Factory surplus

Equipment that is unused but available outside the standard new-sales pipeline. Reasons can include:

• overproduction
• canceled orders
• distribution changes
• end-of-line inventory

New old stock (NOS)

Typically means:

• unused equipment from previous production runs
• may have older packaging or discontinued model years
• often still “new” in the sense of being unused

Open-box

Often unused or minimally handled inventory where packaging was opened. Condition varies, documentation matters.

Refurbished

Previously owned/used equipment that has been inspected, tested, and restored to working condition.

Key CRO point: if your client demands “new,” factory surplus/NOS may fit better than refurbished, depending on how the mandate is written and what documentation you can provide. Explore our inventory.

How factory surplus can support client mandates

Client mandates usually focus on one or more of these:

• condition (unused vs previously used)
• documentation (proof of status)
• performance (meets method requirements)
• traceability (serial numbers and records)

Factory surplus can help because it may offer:

• unused condition
• faster availability than ordered-new
• cost savings without “used” status

What documentation CROs should request

To support audits and reduce disputes, request:

• serial number records
• condition statement (unused / factory surplus)
• included manuals and accessories list
• photos of the unit and packaging
• any available provenance (when and why it became surplus)

You don’t need a 30-page report—just enough to defend the claim.

Common misconceptions

“Factory surplus is the same as refurbished.”
No, refurbished is typically previously used. Factory surplus/NOS is generally unused.

“NOS must be obsolete.”
Not necessarily. Many labs run highly productive workflows on proven platforms.

“Open-box always means used.”
Not always. But you should treat “open-box” as a category that needs clear documentation.

When factory surplus is the best CRO play

• You need “new/unused” status for a contract
• You need equipment deployed quickly
• You want to protect capital while meeting client requirements
• You want to standardize across multiple benches faster

CRO takeaway

Factory surplus/NOS helps CROs solve a common problem: meeting “new equipment” requirements without slowing down contract start dates.

Let us help
If a client mandate requires “new equipment,” share the exact wording and the instrument category (HPLC, incubator, freezer, etc.). HiTechTrader can help identify factory surplus options and the documentation you’ll want for client sign-off. Click here to contact HiTechTrader.