Inventory of Goods and Materials: How to Minimize Losses in International Supplies

International trade is a complex multi-stage process that requires attention to detail, as it involves quite large sums of money. But even with clear organization, it is impossible to predict all force majeure events, so the risk of losses due to loss or damage of goods in transit during storage and transportation is very high. The causes of losses can vary: from weather to negligence of service personnel.

Types of risks in international supplies

• Transport losses can occur at any stage: during picking, loading, transportation. The later the goods lose their appearance and properties, the greater the financial damage. After all, if the products are damaged already at the final warehouse, the costs of their packaging, storage, and transportation are taken into account. Currently, transportation between countries is regulated by the INCOTERMS Rules. This document contains eleven rules that fix the rights and obligations of the parties and regulate disputes regarding transportation, loading, unloading, customs clearance, and transfer of risks.
• Losses due to pricing arise from fluctuations in currency exchange rates and require separate accounting, as the price can change both upwards and downwards at different stages of the transaction.

Losses can be quantitative and qualitative. The former can be measured physically: these are weight, quantity, dimensions. They can be normalized and non-normalized, as norms for write-off are established for them.

Risk management

Managing foreign trade risks includes:

• Identifying and assessing a problematic situation.
• Analyzing the circumstances.
• Searching for methods to minimize negative consequences.

To reduce risks in international delivery, first of all, you need to ensure the competence and reliability of the supplier. To do this, it is necessary to perform the following actions:

• Study ratings and reviews on trading platforms such as Alibaba or Made-in-China, analyze how the seller responds to customer comments and complaints.
• Request the necessary documents and certificates (export permit, safety and compliance certificates) before shipping the goods. This will confirm that the company operates legally.
• If possible, visit the factory in China or order an inspection involving an independent inspection company. This will allow you to assess the production conditions.
• By placing a trial order for samples, you can check the products themselves, as well as the level of service and adherence to delivery deadlines. This will give an idea of how the manufacturer works in practice.

Enterprises working with international supply chains often face the problem: how to keep a sufficient amount of goods in the warehouse without accumulating excess stocks that will become “dead weight.” For this, the concept of timely inventory “just in time” (JIT) was developed, helping to minimize waste and increase profit from supplies.

How to optimize warehouse logistics to reduce costs

To always be one step ahead of competitors, it is important to use various methods to improve storage and delivery processes. Determining the volume of supplies requires demand analysis. This involves studying data on past sales, taking into account market trends and other external factors.

Based on the needs map, inventory plans are drawn up, and the frequency of supplies is determined with a schedule. Another condition is the competent use of space. This task is solved by inventory. Based on its results:

1. Accurate lists of goods stored in the warehouse are compiled;
2. Misgrading, surpluses, and shortages are identified;
3. The actual quantity of products is compared with the documentation data;
4. The appearance of the products is assessed.

Identified shortcomings are eliminated right in the warehouse, which helps minimize delays in forming subsequent orders. Therefore, inventory must be carried out very thoroughly and regularly.

Stages of timely inventory

“Just in time” inventory is a modern strategy used to optimize warehouse stocks. It is relevant for various fields, including international trade, where the company’s profit depends on the speed of decision-making and timely response to customer requests. JIT inventory management includes:

• Forecasting. Procurement departments analyze consumer demand considering market trends, season, and other data to determine the exact quantity and types of goods that will sell best in a particular situation.
• Establishing partnerships with suppliers. This is an important condition for uninterrupted supply of goods.
• Accelerating order fulfillment time by developing routes, reducing processing time through automation.
• Minimum inventory levels. This way, storage costs are reduced.
• Kanban systems for inventory control and management.

By competently using racks and shelves, you can use warehouse space effectively and rationally. Dividing the premises into separate zones simplifies the processes of moving goods and reduces the time to find the right items. Proper labeling and packaging also successfully accomplish this task.

To increase the speed of logistics operations, automation is used, which is a set of specialized programs and robotic systems for data processing. The implementation of information technology makes warehouse processes more transparent and controllable and allows reducing the time for preparing goods for shipment by speeding up the processing of each order. Automated systems minimize the number of errors made during manual data entry. Based on the inventory results, the effectiveness of warehouse logistics is assessed, “bottlenecks” are identified, and changes are made to the processes of acceptance, transportation, and shipment of goods.

By frequency, inventories can be mandatory or planned (their procedure is regulated by law), unscheduled (carried out by decision of the company’s management), and selective (carried out without stopping the warehouse operation for pre-selected goods).

How inventory is conducted in a warehouse

1. The warehouse is prepared for the event in advance: the necessary equipment and technical means are provided, and suitable lighting is ensured. Responsible persons are assigned to check goods by groups, categories, or rows.
2. First of all, goods in the shipping area are checked, they are marked with barcodes, measured, counted, and weighed on scales.
3. Expiration dates, condition, and characteristics are checked.
4. Upon completion of the inspection, a detailed report is compiled.

Our company conducts a full audit and analysis of goods, materials, and company assets for accounting and identifying losses. We use precise equipment and progressive methods that guarantee an accurate result. We help identify shortages and prevent them in the future to reduce losses in international transportation and successfully manage resources. We will conduct an office inventory to check the condition of property, quickly inspect the warehouse, and provide a detailed report. To order the service, call us by phone. We will provide detailed consultation and answer any questions.