Goods-in-transit inventory refers to items that have been shipped by a supplier or manufacturer but have not yet reached their final destination, such as a warehouse or customer. These goods are technically owned by the receiving party (depending on the Incoterms and shipping terms), but are not yet available for use or sale. Accurately accounting for goods-in-transit is essential for inventory visibility and financial reporting. Delays in transit can impact inventory planning, customer service levels, and replenishment cycles, so companies often use tracking systems to monitor and manage in-transit inventory effectively.
