All the parts are purchased. A whilst we do have stock direct shipped to our other sites, our main warehouse transfers stock on a regular basis to other sites. There is a freight cost associated with that, which is different dependent on the destination. So the ideal situation is that freight charge is applied based on a matrix of costs for the transfer order and the Avg cost is recalculated for the specific part/plant(site) on receipt.
All we are really doing is moving stock around to ensure orders can be fulfilled from a particular site, call it a replenishment transfer for the sake of other terms.
What effect does setting the Part-Site-Type from purchased to transfer have apart from enabling the from site and transfer lead time fields?
I guess at the end of the day if you are using a replenishment model of inventory the need for performing transfer orders will be reduced over time, as the stock will be received from the supplier to the correct site and the correct quantities to meet demand between shipments arriving from the supplier. But the need will always be there particularly where we value add in our main site and ship out to the others.