Article Summary:

This article outlines the standard transfer order (TO) process used when inventory components are sent to a co-packer for assembly and then distributed to fulfillment warehouses. It covers each step from purchasing raw components to shipping finished goods, providing a clear view of how inventory flows through the supply chain. This process is commonly used in operations where multiple suppliers deliver parts that are combined into a final product before distribution.

Below is a flowchart and Process Steps of a typical Transfer Order SOP in Supply Chain.

Process Steps:

  1. Purchase Orders to Suppliers
    • A PO is written to Supplier A
    • A PO is written to Supplier B
  2. Inventory Received at Co-Packer
    • Both components from Supplier A and B are shipped to and received at the Co-Packer.
  3. 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.
  4. 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.
  5. 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