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Here's a Creative Exercise You Probably Won't Miss in Allocating Inventory in Transit Using Microsoft Dynamics GP

by Mariano Gomez
Chief Technology Officer, Mekorma

"In the beginning there was chaos and dark..."

This is how I felt about Microsoft Dynamics GP's inventory and distribution modules prior to Microsoft Dynamics GP 10--in particular because of the way everyday business operations like cross-docks and warehouse transfers had to be performed. Clients and consultants would scratch their heads, engineering all sorts of workarounds to get inventory from warehouse A to warehouse B and still manage to accurately track the whereabouts of products during the process.

To those of you with moderately complex distribution processes, the nightmare was simple: how to keep inventory from being allocated while in transit from warehouse A to warehouse B?

Some of the solutions were pretty creative, I have to admit, ranging between

a) setup warehouse A and B as customers, then play with Sales Order Processing to "sell" to these while allocating the merchandise, which would make it unavailable for sale;

b) create an IN-TRANSIT site and make successive transfers hoping in the process that no one would sell out of IN-TRANSIT;

c) acquire an expensive warehouse management system and spend thousands of dollars integrating it.

All these approaches had a problem: they were extremely time-consuming, unreliable, and sometimes, downright expensive.

"Let there be light..." With the introduction of In-Transit Transfer Transactions in Microsoft Dynamics GP 10, Microsoft scored big with distribution companies, since it created a solid and controlled way of transferring products between warehouses with the ability to include landed costs and all the intrinsic details related to getting merchandise from point A to point B within the company. If only I had this available when implementing Dynamics GP at an $800M wholesale grocery distributor a few years ago.

The storyline goes ...

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About Mariano Gomez
More about Mariano Gomez