What does foreign trade inventory mean? How to deal with it?

Foreign trade refers to foreign trade, which can be called foreign trade or import and export trade. Anyway, it refers to the exchange of goods or services between one country and another. So what does foreign trade inventory mean?

1. What does foreign trade inventory mean?

Foreign trade inventory is actually the goods purchased by foreign trade companies or produced by factories for export, which cannot be exported normally due to various reasons, resulting in inventory backlog. (More than 99% of foreign trade inventory is caused by customers refusing to accept the goods due to poor product quality. This is especially the so-called clothing and textiles that are exported and then sold domestically.)

2. How to deal with foreign trade inventory?

1. Receive foreign exchange in a timely manner.

Inventory, especially bulk inventory, is mostly caused by customers canceling or delaying shipments, so whether it is a deposit or a final payment, you must closely track and collect the payment in time. With money in hand, even if the inventory is sold at a discount, you can reduce losses.

2. Measure the loading quantity accurately.

Although the inventory generated by the lack of space in the cabinet is not much, it is annoying to look at. Once there is such inventory, it is best to ask the customer if there are other suppliers who want to ship it. Even if you pay a little freight to send it there, it is better than leaving it in the warehouse.

3. The order information is accurate.

The production orders issued to suppliers must be accurate in terms of color, specifications, descriptions, marks, labels, barcodes, and other information. We have a customer whose products are sold to countries in the Middle East, and different destinations are distinguished by color labels. Once, the factory mixed up the labels of three countries, and all the products had to be reworked. Factories hate rework the most. First, it affects the production schedule, and second, rework is not piece-rate, so workers are not happy to do it.

To sum up, foreign trade inventory refers to the goods that are piled up in the warehouse when import and export transactions cannot be carried out normally due to certain reasons.