In-Transit Inventory

In-transit inventory is the material that is moving between two or more locations, usually separated geographically. This could be finished goods being shipped from a plant to a distribution center. In-transit inventory is an easily overlooked component of total supply chain availability. By understanding in-transit inventory, businesses can optimize their operations and better utilize their resources.

In-transit inventory can tie up working capital and lead to storage and handling costs. Therefore, it is important to carefully manage in-transit inventory levels. Businesses should track in-transit inventory levels and monitor trends over time. They can use this information to make adjustments to their operations as needed.

Overall, in-transit inventory is a crucial part of the logistics process. By understanding in-transit inventory, businesses can optimize their operations and better utilize their resources. This leads to improved efficiency and effectiveness in the supply chain. In-transit inventory management is a key part of supply chain management and should be given the attention it deserves.

Related Links

Inventory in Transit Definition – Operations & Supply Chain Dictionary
in-transit inventory – Demand Solutions

Related Videos