Inventory
5 inventory mistakes distributors make, and how to avoid them
Running several warehouses multiplies small errors. Here's how to keep stock accurate across every location.
By Faisal Al-Mutairi
Product Manager, Inventory · · 4 min read
For distributors with warehouses in Riyadh, Jeddah and Dammam, inventory accuracy is the difference between profit and write-offs. These are the mistakes we see most often, and what to do instead.
1. Transfers that live on paper
When stock leaves one warehouse but isn't received in another, it disappears from the books. Record transfers in the system with an in-transit warehouse so nothing goes missing.
2. No batch or expiry tracking
For food, pharma and chemicals, batch and expiry tracking is essential. Enable it per item and pick stock first-expiry, first-out.
3. Counting once a year
Annual counts hide problems for months. Cycle counting fast-moving items every week catches issues early.
4. Reordering by gut feeling
Set reorder levels based on lead time and average consumption, and let the system raise requests automatically.
5. Valuation nobody understands
Choose FIFO or moving average deliberately and apply it consistently. Your margins and balance sheet depend on it.