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Processes in Warehouse Management 251

Figure 7-29: Inventory impact—fulfi llment

Plan Warehouse Movement
Figure 7-30 illustrates the steps in the fulfi llment process, including both IM
and WM activities. In this case, the creation of an outbound delivery for a
sales order triggers the WM activities. Whereas in the case of procurement the
transfer requirement served as the information link between the procure-
ment process (IM) and the WM process, in fulfi llment the delivery document
serves this role. In our scenario, GBI fi rst generates a sales order in response to
RMB’s purchase order. The company then creates an outbound delivery, which
triggers the need to move 50 bikes from storage bins to the interim (shipping)
storage area, for shipment to RMB. A review of the storage location and the
bin inventory will not indicate any change in the quantity of materials because no
physical movement has occurred yet (see Figure 7-29, column 3).

Figure 7-30: IM and WM steps in fulfi llment

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