Over several years, businesses have done warehouse stock transfers. Adding additional storage facilities, relocating to new sites, and expanding are regular occurrences. Moving goods might be complicated if you don’t have the right information. SMBs are missing the appropriate inventory tracking tools or don’t use them at all. The stock transfer is simply the movement of commodities from one storage place to another.
Types of Transfer of Stock
There are two broad categories of stock transfers used in the sector. In the first instance, it depends on where the process takes place. The procedure is carried out in a second way. Let’s go right to it and figure out what they’re saying:
1. Inter-Company Transfer
In this case, two distinct firms are involved in the inventory transfer. Many company divisions must work together to do this, including sales, purchasing, logistics, and liaison. The usage of unique identifiers for each company further complicates the situation.
2. Intra-Company Transfer
The stock is transferred between two sites of the same corporation. The operations are straightforward since just one party is involved. However, documentation is just as important to keep things running smoothly. When the two companies’ factories and warehouses are put together in various ways, both may occur. Taking a step back to consider the implementation process, let’s move on to the more important categorization.
3. One-Step Process
The transaction is completed in one step, from issuance to reception. A single STO is used to deliver the chosen products to their final destination (Storck Transfer Order.) This mechanism is usually utilised for transactions inside the same business. As a result, the company’s inventory value stays unaltered. The only thing that changes is the amount at each site. The sites should be close to one another if this is used, even within the same company.
4. A Two-Step Method
Tracking efficiency and using it between two independent companies is a better approach to handling activities. Both sides of the STO document are released. The item will be removed from the first warehouse/plant and marked “in-transit.” The STO paperwork indicates that the transaction is “finished” after the product has been delivered to the designated place. A change in value and quantity has occurred after the transfer has been completed. This makes tracking the effectiveness of goods movement and inventory management easier.
Stock Transfer Order’s Purpose
Many merchants and businesses still use Excel spreadsheets and handwritten paperwork to transfer stock. To some extent, these tools are useful, but as the firm expands, they become more difficult to use. Theft, undiscovered damage, misplacement, and procedural inefficiencies fall under this category. These deficiencies in supply chain ecosystems negatively impact multiple firms because of the short lead periods. When it comes to stock transfer orders, firms employ warehouse management software to produce them.
Steps To Transfer Stock in Excel
- Modify the Stocks tab
- Click on the Stock management tab, then choose Stock Transfer in the Stock Movement section.
- To add a new item, click the Add New button.
- To begin the transfer, choose a starting point and an ending point.
- Select Import Lines from File.
- To import an Excel spreadsheet, click Load Import File and choose the file.
- Create lines by clicking Link Columns and then creating lines.
- Click Save after the transfer batch has been filled out.