Controlling Inventory Movement
Inventory transfers between locations or subsidiaries can impact COGS and stock levels. Approval workflows ensure transfers are authorized and properly documented.
Step 1: Define Transfer Rules
Transfers under X units or $Y: warehouse manager approval. Above: operations director. Inter-subsidiary transfers may require additional approval.
Step 2: Create Workflow on Item Fulfillment or Transfer Order
Depending on your setup, use Transfer Order or Item Fulfillment (for transfers). Trigger on create or submit. Add conditions based on quantity, value, or location.
Step 3: Approver Routing
Route to location manager or inventory controller. Use subsidiary or location fields to find the right approver.
Step 4: Post-Approval Processing
On approval: allow transfer to proceed, create receiving request at destination. Notify both locations of transfer status.
Best Practices
- Require transfer reason or reference number
- Validate availability at source before approval
- Reconcile inter-company transfer pricing
Process optimization from YRK Consulting includes inventory and supply chain workflow design.