In the fast-moving world of logistics and supply chain management, visibility is everything. One of the most frequently overlooked areas of inventory tracking is inventory in transit—the goods moving between locations that haven’t yet arrived at their destination. But just because you can’t see or touch it doesn’t mean it isn’t costing you money. Lastly, if you’re scaling your operations or juggling multiple suppliers and locations, managing your in-transit inventory can be a game-changer.
What Is Inventory in Transit?
Inventory in transit (also called transit inventory or in-transit stock) refers to goods that have been shipped from a supplier or warehouse but haven’t yet arrived at their final destination. These could be raw materials on the way to a manufacturing site or finished goods heading to a distribution center or customer.
Even though they’re not physically present in your facility, these items still:
- Belong to your company
- Represent monetary value
- Impact your available stock and cash flow
In many cases, transit inventory can account for a significant portion of your total stock.
Why Is Inventory in Transit Important?
Inventory in transit plays a key role in how smoothly your operations run. Here’s why managing it matters:
1. Cash Flow and Accounting
These goods tie up capital. You’ve paid for them (or will soon), so they impact your balance sheet. Tracking them accurately ensures your financial reporting reflects the true state of your inventory assets.
2. Customer Satisfaction
Delays or lost shipments can directly affect fulfillment timelines. If you don’t know where your products are, you can’t give customers reliable delivery estimates.
3. Demand Planning and Reordering
Failing to consider transit inventory can lead to double-ordering, overstocking, or stockouts. For example, if your purchasing system doesn’t show that 5,000 units are already on the way, you might reorder unnecessarily.
4. Supply Chain Optimization
Understanding lead times, carrier performance, and supplier reliability depends on knowing how long goods stay in transit. Lastly, without that data, it’s hard to identify bottlenecks or negotiate better terms.
The Challenges of Tracking Inventory in Transit
Tracking transit inventory isn’t as simple as logging a delivery date. Some common issues include:
- Lack of real-time visibility: Traditional systems may not show updates until goods are received.
- Disjointed systems: Data may be scattered between your ERP, logistics providers, and spreadsheets.
- Manual errors: Without automation, shipments can be logged incorrectly or missed entirely.
- Global complexity: International shipping introduces customs delays, multiple carriers, and variable timelines.
That’s where robust inventory management software comes in—and where Megaventory shines.
How to Manage Inventory in Transit Effectively
Effective in-transit inventory management requires a blend of good processes and the right tools. Here are some best practices to follow:
1. Digitize Your Supply Chain
Manual tracking with spreadsheets is error-prone and slow. A Cloud-based inventory management software, such as Megaventory, centralizes all inventory data—including in-transit stock—for real-time insights.
2. Use Transfer Orders for Internal Movement
When transferring stock between locations (e.g., warehouse A to warehouse B), use internal transfer orders to formally track the movement. Megaventory lets you create these with just a few clicks and with the assistance of a barcode scanner.
You’ll be able to see:
- What’s in transit
- When it was shipped
- Where it was shipped from and where it ships to
- Which products are included
This gives you accountability across your internal supply chain.
3. Enable Supplier Shipment Tracking
For inbound stock from suppliers, you can record expected delivery dates, shipment details, and product quantities. Megaventory allows suppliers to confirm shipments and lets you track what’s in transit before it hits your docks.
4. Integrate with Logistics Providers
Megaventory integrates with leading shipping platforms and logistics services. This means you can pull in tracking numbers and statuses to keep everyone informed—without jumping between systems.
5. Leverage Reporting and Alerts
With Megaventory, you can run reports that show how long inventory stays in transit, which suppliers or routes cause delays, and where your in-transit value is concentrated. Plus, you can set alerts to notify your team of overdue shipments.
Why Megaventory Is the Best Software for Inventory in Transit
At Megaventory, we know how critical visibility is in modern supply chains. That’s why we’ve built tools specifically to track and manage inventory in transit—so you’re never caught off guard.
Here’s how we help!
- Automatically update stock levels when shipments are received
- Customize shipping workflows based on your specific supply chain
- Access multi-location inventory data in real time, from anywhere
- Assign user roles for warehouse teams, purchasing managers, and suppliers
- Integrate with shipping, eCommerce, and ERP platforms seamlessly
Real-Life Example: Managing Transit Inventory Across Warehouses
Let’s say you’re transferring 1,000 units of product from your central warehouse in Germany to a regional one in Spain. With Megaventory, you can:
- Create a Transfer Order from Warehouse A to Warehouse B.
- Mark the products as “In Transit” in your inventory dashboard.
- Track the movement and estimated delivery date.
- Automatically update Warehouse B’s stock levels upon receipt.
- Analyze the transfer time in your reporting dashboard.
Now imagine doing that across five locations and multiple product lines. That’s where centralized software saves you hours of manual work and prevents costly mistakes.
Final Thoughts: Don’t Let Transit Inventory Slip Through the Cracks
If you’re not actively tracking inventory in transit, you’re flying blind. Also, you might think your warehouse is understocked when goods are just a few days away. Or worse, you may promise customers products that haven’t even arrived yet. Megaventory brings clarity to the chaos, giving you the tools to manage every part of your inventory, including what’s on the move. Lastly, if you’re scaling operations, managing multi-location warehouses, or simply tired of losing track of what’s en route, it’s time to level up your inventory management.
Spiridoula Karkani is a Digital Marketer for Megaventory the online inventory management system that can assist medium-sized businesses in coordinating supplies across multiple stores. She is navigating the ever-shifting world of marketing and social media.