Overview
This article explains how to properly receive inventory from copackers into a 3PL warehouse using transfer orders in Luminous. This workflow helps ensure accurate inventory tracking during the transition from raw materials to finished goods, and ultimately into your warehouse system via 3PL.
This guide is ideal if:
You manufacture goods via copackers
You use a third-party logistics provider (3PL) for warehousing
You need to track inventory during transit
Workflow Breakdown
1. Create a Purchase Order (PO)
Start by creating a PO in Luminous and sending it to your supplier. This initiates the raw materials purchase process.
2. Receive PO Shipments at the Copacker
When raw materials arrive at the copacker, log them in Luminous by manually creating a receiving report. This ensures accurate tracking of inbound stock.
Tip: Even if your copacker handles receiving on your behalf, a receiving report must still be created in Luminous. You can either have your copackers log in to complete the report or do it yourself manually.
3. Create and Send Assembly Order
Generate an Assembly Order in Luminous and send it to your copacker. This outlines what finished goods need to be created.
4. Complete the Assembly Order
Once the copacker completes production, mark the Assembly Order as complete in Luminous. This will:
Deplete raw materials
Add finished goods to inventory at the copacker’s location
5. Create a Transfer Order
Create a Transfer Order to move inventory from the copacker to your 3PL warehouse.
In Luminous:
Go to Inventory > Transfer Orders > Add New Transfer Order
Set the Source Warehouse (copacker) and Destination Warehouse (3PL)
Include projected arrival date, shipping method, and item quantities
Use “Auto receive transfer order on arrival date” if you want inventory automatically received on the scheduled date.
Or use “Open receiving report form on close” to manually receive items after transfer completion.
6. Ship and Mark Transfer Order as Shipped
Once the goods are shipped:
Go to the associated Sales Order (automatically created for the source warehouse)
Mark it as Shipped to deduct inventory from the copacker
7. 3PL Receives Inventory
When your inventory physically arrives at the 3PL, they receive it into their system. To ensure accurate inventory tracking in Luminous, you need to import their inbound shipments and reconcile them within Luminous.
8. Reconcile and Import Inbound Shipments
In Luminous:
Import inbound shipments from the 3PL
Reconcile them against the Transfer Order, not the original PO
Since the PO was received at the copacker, the 3PL shipment should match the transfer order.
FAQs
Q: What’s the difference between a transfer order and a basic inventory transfer?
A: A basic inventory transfer is instant. A transfer order accounts for lead time between warehouses and enables tracking of shipments in transit.
Q: Can I automate receiving at the 3PL?
A: Yes. Use the “Auto receive transfer order on arrival date” setting during transfer order creation.
Q: How do I know inventory is in transit?
A: Visit the Stock page in Luminous to view pending shipments and incoming quantities based on transfer orders.
Need Help?
Reach out to the support team via Intercom if help is needed creating or reconciling transfer orders.