Hold and Release Program - How do I transfer products on quarantine?

The majority of our customers are requesting that we implement a Hold and Release Program, where all finished product produced will be placed on automatic quarantine, to prevent it from shipping to a customer, until we receive verification from our 3rd party lab regarding micro results. Once we receive verification, QA will “release” the finished product making it available to ship.

Here is our dilemma. The facility that we produce the finished product has a small warehouse and cannot hold all our finished products. We have a larger warehouse down the road a few miles, that we transfer finished product to until an order is placed and then it will ship to the customer from this warehouse. Currently, when we transfer product from our manufacturing facilty to our storage facility we perform a Transfer Order (TO). I’m being told that if this product is on quarantine status, we will not be able to execute a transfer order.

If this is true, how can we move finished product that is on quarantine to our warehouse? What options do we have?

How are you sugesting you put the item on quarantine hold? If teh item is not finished until it is inspected this is presumably a routing step, so then it is not actually in stock to enable it to be put on a transfer order in Navision.

Non-Nav’s perspective : At your bigger warehouse u will have to create a visible physical bifurcation that which one is in quarantine. Kind of a line specifying material on one side is to be sold and on other side is the quarantine.

Nav’s perspective : Rename ur Intransit location to Quarantine Location just rename it will work same as it does. Just post a shipment and let it stay in Quarantine warehouse (physically as well as, NAV’s Intransit named as Quarantine).

But this is not a complete solution, now after this u have to deal with what if after the quarantine product fails the quality tests. It is being sold or scrapped or what is done with the product. Can u share what u do in this case and do you carry serialized or lot no. based inventory ? In NAV u will have issue if material fails and u have to receive material to another location as intended and filled in Transfer Order originally.

Without these two last questions answer will not be complete.

Our finished product inventory is by Lot.

Each production run is a unique lot number for traceability.

Rarely does our product fail the micro tests, but it does happen on occasion. Because our products are food based, failures with these tests lead to us needing to destroy the product. However, there are times when we incur damage to the packaging materials, in which case we would like to put the items on HOLD until we have the opportunity to repackage them. Having the ability to place these damaged items on Hold would help provide us with AVAILABLE inventory vs just inventory.