Ways to protect your stock

Ways to protect your stock

Stocks are an integral part any manufacturing process be it industrial goods or fast moving consumer goods. Textile industry is no different and as long as your manufacturing company is selling to retailer, domestic or international, you know that you have a warehouse where stocks are kept and it is a painful reminder of lost value or as some managers may justify, it could be unrealized value. In any case, the money is not in your bank account.

How do you protect your stocks from depreciating, value-wise or even physically? How to protect stocks will emerge from determining what can harm them.
Quality of a warehouse is not of strategic importance in India. Most warehouses are compromised constructions which were not intended to be warehouses. A large number of them are frequently affected by flooding, humidity, pests etc. India is yet to develop high tech warehouses. Nevertheless, it is needless to say that packaging goes a long way in preserving what is inside. This is true for everything right from steel sheets to vegetables.

Simplest thing to do would be to hand the stocks over to professionally-managed warehousing facilities although some numbers will have to be crunched to judge the financial viability of the option. A good quality warehouse with installed security systems may be expensive.

As far as consumer textiles in India are concerned, sometimes goods are dumped in the warehouse as a result of excess packing or rejection in the same form at the time of packing. That packing is designed to withstand only about a month of shipping in protected and fumigated containers. Packaging is rarely designed to contain this contingency of having to store the goods in the same packing material for over 6 months. Hence in most cases, carton packing breaks down, deforming the goods inside. If the polythene wrapping is not strong enough, water, dust, humidity or insects spoil the goods which are then rendered worthless. Investing a relatively insignificant amount to repack or bulk-pack the goods to be warehoused may prove to be a good idea if the goods are to be sold at some point of time in future.
Financially securing the stocks is another way of protecting them. Paying for insurance for the stocks is also a good idea for their protection. Such provisions have been exploited in the past although off hand, I have no evidence to prove it.

Or better yet, how about simply selling them off? This is precisely what we are trying to achieve. www.textilestock.in is focused on selling stocks of textile goods present in India by providing high visibility on the web. We maintain a comprehensive and updated list of textile stocks that gets exposed when customer search for products or supplier. List your stocks with us and we will ensure that they are sold at the best value possible at the earliest.

Samarth Sangal