Case Study: How to Organize Distribution in the Destination Country?

While many local traders are still figuring out how to trade on CIF terms, one of our clients has gone even further down the supply chain.

Today, we’ll share a case where, after the cargo arrives in the destination country, it is delivered directly from the vessel to a warehouse, from where it is gradually distributed in small batches to end buyers.

Disclaimer: We never disclose our clients’ data. All figures in this material are auto-generated, but the report formats and real-world cases reflect actual business operations.

How the Business Process Works:

1️⃣ The cargo is shipped and delivered to the destination country.
2️⃣ The goods are then transferred to a terminal warehouse.
3️⃣ End buyers reserve small batches of the product.
4️⃣ After a certain period, they arrive to pick up their reserved goods from the warehouse.

Throughout this process, the client needs precise tracking of key metrics:
✅ Stock levels for each commodity at the warehouse.
✅ Reserved volumes for specific buyers.
✅ Actual dispatched volumes.
✅ Final financial results.

The purchasing process and CIF/DPU sales are standard, so we won’t dive into them here. Instead, let’s focus on the missing puzzle piece—distribution.

How We Set Up the System:

1️⃣ When the cargo arrives at the port, a warehouse receipt logs the goods into inventory.
2️⃣ When buyers reserve stock, a sales contract is created and linked to the entire supply chain. Since there are multiple contracts with different prices, dates, and volumes, consolidating them all is crucial for accurate P&L calculations.
3️⃣ The client immediately sees if stock is available for reservation.
4️⃣ Once a buyer collects their goods, a warehouse receipt or a logistics document (for transport) deducts the stock accordingly.

How It Works in Practice:

1️⃣ Warehouse movement and buyer insights:

• All incoming stock.
• All outgoing stock.
• Reserved quantities.
• Real-time balance.

2️⃣ Daily tracking of stock inflows and outflows.

3️⃣ Warehouse stock levels at any given time.

4️⃣ Visual analytics by buyer, warehouse, and commodity.

5️⃣ Automated P&L calculations by deal, commodity, and month, displayed on a dedicated dashboard.

Key Results Achieved:

✅ The client efficiently manages distribution for dozens of buyers daily.
✅ P&L is calculated automatically, eliminating manual reporting.
✅ The client avoids the risk of buyers arriving to pick up goods that aren’t actually in stock.

This episode covered the inventory side of the process. If you’re interested, we can also explore how invoicing, payments, and receivables are managed within the same case. Let us know! 🚀