Inventory In Transit
Inventory in transit is inventory that is being transported from one location to another. This could refer to inventory that a company is shipping to its customers or inventory that a retailer is receiving from its suppliers.
- Inventory in transit can be either finished goods or raw materials. Finished goods are products that have been completed and are ready to be sold to customers. Raw materials are the components or ingredients that are used to create a finished product.
- Inventory in transit can be owned by either the seller or the buyer. If the inventory is owned by the seller, it is referred to as consignment stock. If the inventory is owned by the buyer, it is referred to as vendor-managed inventory (VMI).
- Inventory in transit can be either inbound or outbound. Inbound inventory is inventory that is being shipped to the company. Outbound inventory is inventory that is being shipped from the company.
Inventory in transit is a key part of the supply chain and can have a major impact on a company’s financials. If managed properly, it can help improve customer satisfaction and reduce costs. However, if not managed properly, it can lead to excessive storage costs, stock-outs, and other problems.
Related Links
Inventory in Transit Definition – Operations & Supply Chain Dictionary
in-transit inventory – Demand Solutions
Goods in transit — AccountingTools
A Guide to Understanding Inventory and its Management
Related Videos
What Is Inventory In Transit?
Inventory Basics - Whiteboard Wednesday
BTA 202 Goods in Transit and Consignment Goods
-
What Is Inventory In Transit?
-
Inventory Basics - Whiteboard Wednesday
-
BTA 202 Goods in Transit and Consignment Goods