Inventory, warehouse & supply chain
Stock transfer process between warehouses and branches
A controlled stock transfer process: requests, dispatch, in-transit stock, receiving confirmation, discrepancies and the reports that stop transfer losses.
Stock transfers move inventory between locations of the same company: from a central warehouse to stores, between branches, or from a plant to a distribution center. They are routine, frequent and one of the biggest sources of unexplained inventory differences in multi-branch companies. A good transfer process makes every unit traceable from the moment it leaves one location until it is confirmed at the other.
The transfer process
- Request. A branch requests stock, or head office creates a replenishment plan. The request lists items and quantities and is approved according to policy.
- Picking. The sending location picks the approved items.
- Dispatch. A transfer document is issued, stock is deducted from the sender and moved to in transit. The document travels with the goods, signed by the dispatcher and driver.
- Delivery. Goods are delivered, ideally with seal numbers or crate counts recorded.
- Receiving. The receiving location counts the goods against the transfer document and confirms quantities received, recording any shortage, overage or damage.
- Discrepancy resolution. Differences are investigated by the sender, receiver and logistics within a set time.
- Closure. Stock moves from in transit to the receiver's inventory; discrepancies are adjusted with approval.
Why "in transit" matters
Without an in-transit status, stock either disappears from the sender before the receiver has it, or appears at the receiver before it arrives. Both create false stock-outs or phantom stock. In-transit stock should:
- Belong to the company but neither location
- Be visible in a report with age (days in transit)
- Be cleared only by receiving confirmation
Transfers older than the normal delivery time should trigger follow-up.
Handling discrepancies
| Situation | Action |
|---|---|
| Receiver gets less than dispatched | Record shortage on receipt; logistics and sender investigate; adjustment approved after investigation |
| Receiver gets more than dispatched | Record overage; sender checks for picking error |
| Damaged in transit | Record damage with photos; decide on return, disposal or claim |
| Wrong item | Receive as actually delivered; correct the transfer with approval |
Set a rule such as "discrepancies must be resolved within seven days" and report unresolved ones weekly.
Controls that reduce transfer losses
- Blind receiving: the receiver counts without seeing the expected quantity, then the system compares
- Sealed containers or crate counts for high-value goods
- Separate dispatch and receiving users, so nobody confirms both sides
- Gate passes for goods leaving the premises (gate pass guide)
- Transfer accuracy by route and branch, reviewed monthly
Transfers between companies
When stock moves between different legal entities in a group, it is not a transfer but a sale and purchase, with invoices and tax implications. The system should treat intercompany movements differently from internal transfers. See multi-company financial consolidation.
Useful transfer reports
- Transfers in transit by age
- Transfer discrepancies by branch, route and item
- Transfer volume by lane, to plan logistics
- Requested vs. approved vs. delivered quantities, to measure fill rate
Where Cirquolus fits
Cirquolus Warehousing & logistics handles branch inventory and product transfers, logistics and deliveries, and inventory management gives branch stock visibility and product movement. Gatekeeping adds property control for goods leaving facilities. Related: multi-branch inventory management.
Frequently asked questions
What is a stock transfer?
The movement of inventory between locations of the same company, such as from a warehouse to a branch.
When should transferred stock appear at the receiving branch?
Only after the receiving branch confirms the quantities received. Until then, it should be in transit.
Who is responsible for transfer discrepancies?
The sender, logistics and receiver investigate together; policy should define who bears the loss based on where the difference arose.
Is a transfer between two companies in a group a stock transfer?
No. Movement between separate legal entities is a sale and purchase that needs invoicing and proper tax treatment.
Bring this workflow to a Cirquolus demo.
Show us your current process, companies and branches. We will map it to the modules you need and propose a realistic rollout.