This article explains the transfer order process used when inventory components are sent to a co-packer, assembled into final products, and then transferred to fulfillment warehouses for distribution.
Below is a flowchart and Process Steps of a typical Transfer Order SOP in Supply Chain.
Process Steps:
Purchase Orders to Suppliers
A PO is written to Supplier A
A PO is written to Supplier B
Inventory Received at Co-Packer
Both components from Supplier A and B are shipped to and received at the Co-Packer.
Assembly Order Created
Once all components are received, an Assembly (Manufacturring) Order is created and completed.
The Co-Packer assembles the final product using the received components.
Transfer Order to Fulfillment Warehouse
After assembly is complete, a Transfer Order (TO) is generated to move finished goods from the Co-Packer to the Fulfillment Warehouse.
Shipments to Fulfillment Warehouses
The inventory is then shipped from the Co-Packer to one or more fulfillment warehouses, such as:
Warehouse 1
Warehouse 2