The adjustments and transfer processes of a Warehouse Management System (WMS) help your warehouse work like a well-oiled machine. Adjustments are the fine-tuning of gears, ensuring that every part is working correctly and efficiently. Transfers are the conveyor belts, moving parts from one section to another seamlessly. Together, they keep both the machine and warehouse operating efficiently, with every piece functioning properly in its place.

Altering Inventory

Using a WMS to record inventory adjustments and transfers is essential to keeping an organized and well-functioning warehouse. When the operator records every change of quantity or status, the rest of the workers are up to date, guaranteeing a smooth and efficient fulfillment process. 

Adjustments allow for the correction of inconsistencies, such as damaged goods or miscounts, ensuring that inventory levels reflect the actual stock on hand. Transfers facilitate movement of inventory between “buckets”  in the ERP and for status changes in the system. These actions almost always confirm changes to the ERP, keeping the system up to date. Operators also use these functions for order fulfillment and improving workflow efficiency by making the best use of space.

There are three types of inventory modification processes that can occur within the warehouse:

• Inventory Adjustment
• Inventory Transfer & Status Change
• Inventory Build/Unbuild

 Inventory Adjustment

In the WMS, inventory adjustments refer to changes in the quantity of inventory for a specific item in a specific bin. The WMS will walk the operator through a series of steps in order to correctly remove or add inventory to a specific bin and record the final quantity.

To initiate any adjustment, the warehouse operator must select the reason code from a list of circumstances configured based on your business’s needs. This configuration can be edited or changed to best accommodate the demands of your business. Some of the most common reason codes include:

• Lost item
• Found item
• Damaged item
• Repaired item
• Quality Assurance
• Manufacturing

The operator will then enter the item ID, bin, quantity and status to complete the adjustment and record it in the WMS.

Inventory Transfer

Sometimes, your business may decide to move inventory between warehouses or change status within the same warehouse. The transfer process most often refers to the movement of inventory between different inventory “buckets” in the ERP. In this process, both a shipping order from one warehouse and a receipt from another are created to track the “movement” of the item. The initiating warehouse fulfills and ships the transfer order sent from the ERP and confirms it, which creates a receipt at the receiving warehouse that is completed when the physical order arrives.

Operators can use inventory transfer to move items individually, but the process is also often used to transfer items in bulk, like in circumstances where warehouse operations require placing items on hold. 

The initial steps for an inventory transfer are similar to adjustments. The operator will select the reason code and enter the item ID. From there, the WMS will prompt the operator to enter the original bin where the item is being taken from, as well as the quantity of the item to be transferred. Finally, the operator will record the new site if transferred to another warehouse, the destination bin within that location, and the final status of that item.

Inventory Build/Unbuild

The final actions, inventory build and unbuild, are used to manufacture a new item or disassemble a finished product back into components.

To initiate this process, the operator enters the reason code “manufacturing” or another relevant code. They will then identify the assemble or disassemble action and enter the item ID, quantity and target bin.

Inventory build is differentiated from kits by when they are assembled and their status. Kits are assembled upon order, while inventory build stores an assembly together as a new unit of inventory.

Streamline Your Adjust and Transfer Processes Using ShipHawk WMS

ShipHawk WMS provides an effective platform for performing adjustments, transfers and status changes under one simple interface. Warehouse operators can easily complete actions in a few easy steps, always keeping inventory status up to date in real time. Take the first step to optimizing your warehouse operations and schedule a time to speak to a shipping expert at ShipHawk today!