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Inventory and
Warehouse Processes
Introduction

Inventory and warehouse management are
closely related to the fulfillment and
production processes


Warehouses often supply raw materials to
manufacturing
Warehouses store and move finished and semifinished good
Inventory Models
Inventory With OFBiz
Facility warehouse
Area
Area
Aisle
Aisle
Level
Level
High rack
Picking
Position
Position
Position
01
02
Inventory with OFBiz
Types of Goods Movement

Receipt from production or procurement


Goods issue to production or fulfillment




Increases finished goods or trading goods
inventory
Or destruction (disposal)
Decreases raw material inventory
Transfer postings change the status of a good
Stock transfers

Move goods from plant to plant or storage
location
Types of Goods (OFBiz Status)

Inventory status varies based on whether it is
serialized or not
Goods Status (Discussion)





We can sell unrestricted stock
Transit/Transf stock is stock in motion
Restricted use stock includes reservations
Blocked stock is stock received “conditionally”
pending acceptance
A batch is a subset of stock managed
separately from the material itself
Goods Receipt


Remember it’s a receipt of goods into
inventory from a vendor
Goods receipts are triggered by





Goods received from vendor from purchase
Unplanned receipts
Customer returns
THERE IS AN ACCOUNTING CONSEQUENCE
Logistics / Materials Management / Inventory
Management / Goods Movement
Goods Issue

To review, goods are leaving inventory
typically sold to a customer


THERE IS AN ACCOUNTING CONSEQUENCE
Goods issue event is triggered by


Planned resulting from a sales order
Unplanned

Scrap / internal consumption / sampling
Internal Warehouse Processes

What happens in the warehouse stays in the
warehouse



THERE IS NO CONSEQUENCE
We are just moving goods around. We are
not revaluing them, buying them, or selling
them
We will discuss in 2 parts


The organizational units
The processes of moving goods
WM Organizational Units
WM Organizational Units

Type







Configured as Pick/Primary and High rack but
we could add others
Area
Asile
Section
Level
Position
Preferred stock levels
WM Organizational Units
WM Organization

Doors are locations where goods are received
or shipped
Transfer Postings

Change the status of a material in stock





Unrestricted use
QA / QC
Blocked
In transit
Transfer postings do not always result in the
physical movement of goods

They might just change the logical status of a
good
Transfer Postings (Examples)

From vendor owned inventory to company
owned inventory



The vendor stores their materials in our
warehouse (consignment stock)
Change a material’s characteristics over time
OFBiz does not fully support all of these
Stock Transfers

Use to physically move materials from one
organizational level to another



Plant
Storage location
Etc.
OFBiz Stock Transfer
Fulfillment Steps

After outbound delivery and before goods
issue

Warehouse issues transfer orders


Create and confirm
Goods physically move from storage bins
(locations) to interim storage
Production (steps)

The same confirmations are made


When raw materials are issued to production
When finished goods are transferred back to the
warehouse
WH Controlling
Processes Warehouse
automation videos

Process change


Picking and return


http://www.youtube.com/watch?v=Q20nhhT07f
0
http://vimeo.com/12948899
Automated pharma

http://vimeo.com/72337318
Warehouse Automation
(Implementation)

SSI Schneider is designed to operate with
SAP


Web Services?
Other systems have APIs for picking and
goods movement

OFBiz custom code?