Warehouse management is important for the company but the management of bonded warehouses which are object to constant control from state authorities might be a real challenge. The successful management of bonded warehouses requires:

1. Competent manager

The competent manager is a key figure who knows in details the customs and tax legislation and continuously updates his knowledge. Since Bulgaria entered EU, the turnover of goods passing through customs and related to customs formalities dropped down. On other hand the customs upgraded its electronic system and employees and continue to invest in this upgrade. The checks became more often, more detailed, the results come faster and the sanctions are not delayed. Thus, if you want your business to be 100% legal, you’d better invest in right employee or partner who to manage your bonded warehouse. If you prefer to invest in your employee, check if you have given him conditions for work and trainings. This investment is paid back if you keep the employee. If you prefer to outsource, ensure that you can inspect your partner at any time. The control is very important because if there is any violation, apart from the fees and negative image, your activity might be interrupted or stopped. The competent manager is the one who protects your interests using the levers Knowledge, Skills, Loyalty.

2. Clear working process

This requirement concerns every department, but the constant control on warehouses is absolutely obligatory. Apart from fixing who is doing what, it is very important to set the material and administrative responsibility. The occupation of every employee should be written in details in the warehouse procedure, while the job description points the main streams of obligations. Please pay attention that all warehouse workers should bare material and administrative responsibility.

3. Accurate records and availability

It is not acceptable mistakes in records (like names, codes, origin, quantity, ect.), mixed products, lack or surplus of goods to be registered in bonded warehouses. In majority of the cases if such problems exist, they are treated as violations of the law by the firm. If you find any of the above mentioned issues, take immediate measures. The first step is to review the procedure, the second step is to fend off the intruders and keep them accountable. And because technical mistakes happen, the competent manager should solve the problem fast and to explain the mistake to the customs. And don’t forget to insure the company against professional mistakes.

4. Reporting

Reporting is the fastest way to register if the warehouse functions according the laws and company politics. Apart from the daily operational records, the warehouse manager has the task to systemize the information quickly and to provide it to customs in the required formats. As well as for all reports, there are deadlines here too, and if these deadlines are impaired, the sanctions come quickly. Thus it is not ok to wait for the last moment for reporting. Usually the last three days before the dead-line are rather busy and often (unfortunately) the customs system blocks and you cannot submit the report due to technical issues. The unpleasant moment here is that if you do not succeed to submit the report on time, you would be sanctioned. Another problem is that if you try to send the report in the last moment, the customs would not be able to process it and the report stays open. So if you have amounts for reimbursement, the payment will be delayed.

Before you send any report, check it at least twice – don’t trust blindly a colleague or the system.

5. Steady hand

Every warehouse should be arranged perfectly and function effectively. On one hand this is important to serve better the customers. On other hand it should be possible to make an inventory check at any time of the total or part of the stored goods and the inventory check to show full compliance between documents and availability. In order to achieve this, your competent manager should be a pedant with steady hand and power. The frequent internal checks of goods and documents, applying sanctions for non-compliance with the procedures accelerate the faster implementation of certain order and keep it for a longer period. From customs point of view, the most important is to be able to check you at any time. And when the customs finds that your bonded warehouse is constantly kept in a perfect condition, you can receive easier and faster other licenses for expanding your business.