Liability Check: On-site Stock Assessment before Payment to Suppliers
Surplus stocks of fabrics, trims, accessories, and finished goods are building up at mills and factories due to COVID-19 delayed shipments and shutdowns.
Travel restrictions mean that brand teams cannot go on-site to check that the quality and quantity of these stocks match with what was initially ordered. This means brands could potentially lose money and time spent on materials they may not be able to use in their manufacturing process or sell to their customers. This could also impact their supplier relationship and lead to potential litigation.
To head off this potential threat, SgT’s teams have created a specific program of 10 technical and objective steps that cover the entire risk process related to managing their stock during this time:
- Fabric production, storage and delivery
- Product manufacturing elements
- Additional specific points of controls
Additionally, poor warehouse conditions such as humidity may also affect stock. SgT’s experts can assist in assessing the physical condition of raw materials and finished goods as well as temperature, security and best practice on-site, ensuring brands can keep stock at the mills or factories as per their expectations.
Interested in learning more about our liability check solutions?
