If you are a company that imports, exports or distributes merchandise, you are likely always on the lookout for opportunities to exert more control over inventory risks, from the point of origin all the way through to your merch’s final stop. One way to do this, and to garner a better, overall coverage of your goods, is through a stock throughput policy.
After all, supply chain volatility is at an all-time high. There are far more links along the chain that can cause issues with merchandise, lowering or destroying its value. Links like global outsourcing, government regulations and more. A stock throughput policy can help alleviate many of the worries associated with this process.
This specific policy covers inventory (or movable goods). That can include everything from raw materials through finished products. Not only that, but that inventory is covered when it is on the move when it is “undergoing the process,” and while it’s stored, either in a third-party location or a facility you own. Some policies even cover the merchandise while it’s sitting on shop shelves. It does not, however, cover damages caused by a normal manufacturing process.
Most manufacturers choose this policy type because it provides a bit more seamless coverage for goods than either a transit and storage or property policy can. A little research and asking the right questions from companies like David Sayles (www.davidsayles.com) can help interested organizations find the right stock throughput policy to fit their needs.