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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.

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