6 Tips for Effectively Managing Goods in Transit
Monitoring goods in transit is crucial for effective inventory control. To support you in properly managing the goods that aren’t in your warehouse, here are some best practices.
#1. Implement Inventory Management Software
Manually monitoring inventory can be time-consuming, inefficient, and inaccurate. A better solution is inventory management software for automatically monitoring inventory levels and receiving stock updates.
However, inventory management solutions are not equal. If you want an easy-to-use tool that provides accurate, fast, and valuable insights, you can’t go wrong with Logiwa WMS. The platform can double as your real-time ecommerce inventory management and cloud order fulfillment software.
The platform will sync inventory levels between goods in transit and goods within your warehouse so you know everything going on with your inventory. Whether you are a B2B, 3PL, or D2C warehouse, Logiwa has solutions for optimizing stock levels and avoiding costly stockouts or overstocking.
#2. Take Advantage of Automation
The best inventory management tools, such as Logiwa, provide automation solutions for monitoring goods in transit. For instance, Logiwa can automatically compare carrier rates and providers, so you can pick the most effective and affordable shipping option to complete orders and reduce transit times.
You can also use the platform as your ecommerce shipping software to provide customers with automatic shipping status and location updates.
#3. Integrate All Inventory Data
A WMS like Logiwa can serve as your single source of truth where you can monitor and leverage inventory data from various systems. Having all your data in one location simplifies finding the information you need.
Also, integrating Logiwa with other warehouse systems ensures continuous data synchronization, giving you access to only up-to-date, real-time data. Plus, the automatic and continuous synchronization between systems connected to a single source of truth eliminates issues caused by double or wrong data entries.
Up-to-date and accurate data will support you in tracking goods in transit, providing customer updates, and accounting for inventory.
#4. Understand Who Owns Goods in Transit
Who owns goods in transit depends on if you have a freight on-board (FOB) shipping point or freight on-board (FOB) destination arrangement. A FOB shipping point setup transfers ownership to the purchaser once the goods leave your warehouse for shipping.
On the other hand, an FOB destination setup means your warehouse owns and is liable for goods in transit until the purchasers take possession.
The owner of goods in transit is responsible for losses that may occur during transportation due to accidents, errors, or theft. The owner must also financially account for their goods in transit, so it’s critical to understand who’s responsible.
#5. Carefully Account for Goods in Transit
Accounting for goods in transit is two-fold. First, you must “account” for them financially on your financial statements. Goods in transit are considered to be current assets, so you’ll need to be sure and list them on your books for accurate accounting.
Second, you must “account” for them as part of your inventory for accurate inventory management. While goods in transit are still considered a part of your inventory, they’re not available for new orders. You’ll need an inventory management system that can track goods in transit to ensure accuracy.
#6. Utilize Transit Warehouses
Transit warehouses offer a temporary place to hold or store shipped goods before sending them to their final destination. You can leverage transit warehouses to consolidate orders before sending them to purchasers.
For example, if a purchaser’s order contains items from multiple facilities, you can ship orders from the facilities and consolidate them at the transit warehouse. After consolidation, you can send the ordered items together to the purchaser.
Consolidating goods in transit simplifies tracking and managing multiple items heading to one place. It’s also cheaper than shipping order items separately to fulfill one order.
Manage Your Inventory with Ease with Logiwa WMS
Effectively managing goods in transit can be a challenge, especially for large warehouses. Fortunately, with a WMS like Logiwa, you can easily monitor goods in transit and get automated updates regarding orders. Plus, Logiwa WMS offers valuable, easy-to-understand insights for improving inventory management and shipping.
But don’t just take our word for it. Request a demo of Logiwa WMS today to see its abilities within your own warehouse.
FAQs about What are Goods in Transit
What are goods in transit?
Goods in transit are purchased, processed, and shipped products on the way to customers from warehouses or distribution centers. These products remain goods in transit until the client or purchaser receives them.
Who owns goods in transit?
Who owns goods in transit depends on the freight on-board (FOB) shipping point or freight on-board (FOB) destination arrangement. A FOB shipping point setup transfers ownership to the purchaser once the goods leave your warehouse for shipping. A FOB destination setup means your warehouse owns and is liable for goods in transit until the purchasers take possession.
Are goods in transit included in a purchase inventory?
Yes, goods in transit are part of a warehouse’s purchased inventory. Operators should track and account for goods in transit just as they would for inventory within their facility. Otherwise, issues like inventory miscalculations or losses arise.
What is an example of goods in transit?
Finished goods in transit to a warehouse from a supplier, purchased merchandise that has left a warehouse on its way to a seller location, and packaged orders on its way to consumers via carrier can all be considered examples of goods in transit.
