- Split inventory
- Inventory must be allocated and shipped into foreign warehouses.
- Bulk importing
- Inventory enters the country before the customer order exists.
- VAT + customs infrastructure
- Additional registrations, filings and import processes may be required.
- Additional 3PL
- Another provider, contract, SLA and operating relationship.
- Additional systems
- Potentially another WMS, inventory feed and reconciliation process.
- Forecast by country
- Decide where inventory will sell before actual demand is known.
- Working capital overseas
- Cash is tied up in inventory sitting in foreign markets.
- Stranded inventory risk
- Slow-moving SKUs can become trapped in the wrong market.
- More accounting + compliance
- Additional tax, customs, regulatory and professional-service overhead.