We are trying to do some improvements to our stock transfer process. One of the biggest bottlenecks is resolving shipping differences (or RSD). This process involves adjusting for short-shipments and over-shipments. Currently we use a two-step plant-to-plant transfer to adjust the differences. If too much was shipped, an additional plant-to-plant transfer is posted from the shipping location to the receiving location; vice-versa if the shipment was short. We use workflow to facilitate the two-step process and make sure that both steps are executed. We used to just have inventory control do a single step transfer but that was too onerous for the inventory control group. Why do we use this method? Two basic reasons:
1. Our accounting system tracks transfers as part of its allocation process so that the producing location (which normally sources the transfers) can have inventory accountability for the items it ships. If we were to just adjust the inventory at the receiving location, this would break the chain in the allocation tracking.
2. We have location-based security so only a handful of users can process an inventory adjustment at all locations. Therefore we use the two-step approach so that inventory control does not have to be involved on each adjustment 9and unfortunately there are a lot of them).
We are now rethinking all of this and if we can get a more efficient process, we should be able to convince accounting to allow alternate methods.
What are your thoughts on this process and how do you operations handle these discrepancies?
Thanks in advance for your feedback,
Reese Geigerman
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Message was edited by: Juergen L