A complicated transportation flow
This is the most complicated transporation flow I could come up with as of now. Will add more complications as I think of them.
You would never want to take all of the steps in this scenario. When I get finished, I will do another scenario with what I think is the bare minimum.
I will assume a tightly controlled environment, where inventory is kept in locked storage.
- This flow would start with a transfer of goods from storage to shipping dock: a transfer of custody from the stock-keeping agent to the shipping agent.
- This transfer would decrement storage inventory and increment shipping dock inventory.
- Next, either shipping dock workers or transportation vehicle workers would load the goods onto the transportation vehicle. This is a load event on a new process for the transportation.
- At the same time, a transfer would change custody of the goods from the shipping dock agent to the transportation agent.
- The rights and responsibilities for custody of goods in shipment would probably be documented in fine print on the back of the shipping label...
- This transfer would decrement shipping dock inventory and increment transportation vehicle inventory, also called Cargo Manifest.
- Either providing or receiving agent would also add the goods to their Goods in Transit inventory.
- At the same time, a transfer would change custody of the goods from the shipping dock agent to the transportation agent.
- Goods in transit refers to merchandise and other types of inventory that have left the shipping dock of the seller, but not yet reached the receiving dock of the buyer. The concept is used to indicate whether the buyer or seller of goods has taken possession, and who is paying for transport. Ideally, either the seller or the buyer should record goods in transit in its accounting records. The rule for doing so is based on the shipping terms associated with the goods, which are: * FOB shipping point. If the shipment is designated as freight on board (FOB) shipping point, ownership transfers to the buyer as soon as the shipment departs the seller. * FOB destination. If the shipment is designated as freight on board (FOB) destination, ownership transfers to the buyer as soon as the shipment arrives at the buyer.
- Also, a transfer would change ownership of the goods from seller to buyer at the FOB point.
- At the destination, either transportation vehicle workers or shipping dock workers would unload the goods from the transportation vehicle. This is an unload event on the transportation process.
- Then a transfer would change custody from the transportation vehicle to the receiving doc.
- At the same time, goods-in-transit would be decremented (for whichever agent was responsible for tracking goods in transit).
- The transportation agent would log a transportation service event where the provider would be the transportation agent and the receiver would be whichever agent was responsible for paying for shipping.
- And finally, another transfer would change custody from the receiving dock to storage inventory.