01
Use states that answer different questions
Ordered tells purchasing what the supplier accepted. In transit tells operations what is moving. Received tells inventory what has reached the location.
02
Do not sell incoming stock as available
Incoming units should become available only after the receiving step and the product is active at the destination location.
Business example
Track eighty lamps through two delivery stages
The supplier accepted 80 lamps, shipped 50 and the warehouse has received 20 of those shipped units.
| Stage | Quantity |
|---|---|
| Ordered | 80 |
| Shipped | 50 |
| Received | 20 |
| Still with supplier | 30 |
| In transit | 30 |
- Keep the ordered quantity visible
- Update the shipment when the supplier confirms it
- Add stock only for the twenty lamps received
Sources
Further reading
Questions, answered
Frequently asked questions
What should I check first?
Ordered tells purchasing what the supplier accepted. In transit tells operations what is moving. Received tells inventory what has reached the location.
What result should I aim for?
Keep supplier commitment, goods in transit and physically available stock as separate quantities.