Stock / Inventory refers to the total of raw materials, work-in-progress, semi-finished goods, and finished goods held by an enterprise for sale or production. In foreign trade, it specifically means goods that have been fully produced, stored in a warehouse, and are ready for delivery at any time. Usage scenarios include: stating availability from stock in quotations, confirming lead time from stock, stock taking, and inventory cost accounting. Notes: In foreign trade, it is necessary to distinguish 'stock' from 'stock on hand', 'safety stock', and 'dead stock'; inventory levels directly affect delivery lead time and capital occupation. If a quotation claims goods are available from stock, it is essential to ensure they can actually be shipped to avoid overselling. Unlike make to order, stock goods can usually be shipped immediately, but may face risks such as outdated styles, exchange rate fluctuations, and storage costs. In addition, under FOB or CIF, ownership of the stock transfers at the ship's rail at the port of shipment, but the storage location may affect inspection and insurance arrangements.
📝 Examples
1. We currently have 5,000 units in stock and can arrange shipment immediately; the lead time is two weeks faster than for a new order. (Illustrates that stock availability can shorten lead time.)
2. Due to a decline in seasonal demand, this batch of stock has been sitting for over 180 days; we recommend clearing it at a discounted price. (Highlights the capital pressure of dead stock and how to handle it.)
💡 Foreign Trade Tips
Foreign trade terms are the foundation of international business communication
Trade practices may vary slightly by country; pay attention when using them
When using terms in contracts, specify the applicable version (e.g., Incoterms 2020)
For unfamiliar terms, use GlobalSync's multilingual email helper to confirm with your partner