Planning transfer orders in Microsoft Dynamics 365 Business Central lets you move inventory between locations and fill your trucks to their full weight and volume capacity. You do this by combining the planning worksheet with the direct replenishment journal.
You start by running an MRP calculation with a transfer order template that triggers on zero inventory. This finds the locations where you go below zero with existing orders, so you know where you need to replenish.
You filter on stockkeeping units with the transfer order replenishment system, excluding your production location. This way you only plan transfers across your distribution and sales locations.
You use the direct replenishment journal to calculate up to reorder point or maximum inventory for a specific destination location. Calculate to maximum when you want to fill up a shop’s shelves. Calculate to reorder point when you just want to utilize the capacity of a truck.
If you set up weight and volume on the item cards and stockkeeping units, the worksheet shows you the total weight and total volume of the planned lines. You can export this to Excel and adjust quantities until the truck is filled efficiently.
This method requires manual handling. You add lines, change quantities, and check the totals yourself to fill the truck the way you want.
Planning transfer orders across multiple locations
If you run a larger company, you probably have inventory spread across several locations. A typical setup includes a main office, one or two production sites, third-party logistics (3PL) inventories, sales hubs and shops. You move items around the country, and often across several countries.
When you do your planning, you want to plan transfer orders back through the supply chain. The goal is to fill up an incoming truck and utilize the available weight and volume, so you get the full use of every truck you send out.
Running an MRP calculation for transfer orders in Business Central
You start in a simple MRP calculation and pick a template for transfer orders. In this example, the template is set up to trigger on zero inventory. You do this because you need to find the locations where you are actually going below zero with the existing orders.
You exclude production items by filtering on items that are not on your production location code. That means you only plan on stockkeeping units across your different locations, and only with transfer orders. Specifically, you plan the stockkeeping units that have the transfer order replenishment system.
The location filter is set to everything except production, which covers your main location and all the stockkeeping units. The calculation gives you a list of items with demand that is not fulfilled on the ending inventory.
Filling up a single truck to a distribution location
To create a transfer, focus on one location at a time. Take an external distribution location, for example one in the middle of Europe that you want to fill up. You have a truck driving down there, and you want to load it with city bikes and lamps.
The planning calculation might suggest, say, 140 bikes and 68 lamps. Those quantities have weights and volumes that may not fill the truck precisely. So you set the action message on the relevant lines, transferring from your production location to the external location, and carry out the actions. The lines then appear in your planning worksheet.
Using the direct replenishment journal to optimise the load
The next step is the direct replenishment journal. Here you calculate direct replenishment for the destination location. You can calculate to reorder quantity, or even up to maximum inventory.
If the destination is a shop and you want to fill all the shelves, plan up to maximum. In this case the goal is just to utilize the weight and volume in the truck, so you calculate to reorder point for the external location.
The calculation uses only transfer orders and only the stockkeeping units on the external location code. It then suggests quantities to order. Some lines need nothing because they are already fine, while others need replenishment.
You compare the suggested items against what you have available on your production inventory. You can lower some quantities, for example if you only want to move part of the stock, then carry out the action on the lines you select. The remaining lines stay in the journal.
Tracking weight and volume to maximise truck utilization
In the planning worksheet you can see the lines building up for the truck. If you scroll right, you see the total volume and total weight. In standard demo data these values are empty because they are not set up on the item card.
Once you set up volume and weights on the items and the stockkeeping units, the worksheet shows you the totals. You can export them to Excel to see how much the load weighs and how much space it takes.
If you have more weight or volume available, you add more lines and continue. You figure out how to fill the truck, carry out the action, and adjust quantities. If a line has too much, you change it directly in the worksheet and the weight and volume update automatically.
This gives you a practical way to utilize the full potential of the trucks you are running. It does take some manual handling to fill a truck this way, but it gives you control over how each load is composed.
Q&A
How do you plan transfer orders across multiple locations in Business Central?
Run an MRP calculation with a transfer order template that triggers on zero inventory. Filter on stockkeeping units that use the transfer order replenishment system and exclude your production location. The calculation lists items where demand is not fulfilled on the ending inventory, so you know which locations need replenishment.
What is the difference between calculating to reorder point and to maximum in the direct replenishment journal?
Calculate to maximum when you want to fully fill a location, for example a shop where you want to fill all the shelves. Calculate to reorder point when you just want to utilize the available weight and volume in a truck without overfilling the destination.
How can you see the total weight and volume of a planned truck load?
Set up weight and volume on the item cards and stockkeeping units. The planning worksheet then shows the total volume and total weight of the planned lines when you scroll right. You can export these totals to Excel to check how much the load weighs and how much space it takes.
Can you adjust the quantities on a planned truck load?
Yes. You add lines, change quantities directly in the worksheet, and the weight and volume update automatically. If a line has too much, change it in the worksheet to rebalance the load.
Does optimising truck utilization with transfer orders require manual work?
Yes. While the calculation suggests quantities and tracks weight and volume, you still add lines, adjust quantities and carry out actions yourself to compose each truck load the way you want.