TermiKnowledge - Supply Chain, Procurement and Inventory Terminologies
Wire Transfer is a powerful concept in Supply Chain Management. Supply chain is a sequence of events leading from inception to completion in a manufacturing or assembly process, with a view to achieving maximum value creation at the lowest possible cost. The entire sequence of events and activities can be described using discrete time steps, i.e., events occur in specific time intervals. Each of these activities is characterized by a unique set of physical and/or financial considerations.
Wire Transfer in Supply Chain Management refers to the automation of processes involving physical transfers of resources between locations. This term is widely used in numerous business sectors and therefore, it covers all aspects of the supply chain. For example, it takes the form of direct and indirect transfers of material, including stock, to the specified location, where goods are later completed and delivered to the final users. Wire transfers can also involve the movement of inventory from one location to another.
Wire Transfer can also be regarded as internal transfer of inventory or goods from a lower level of the production hierarchy to a higher level in the organization. For example, internal transfers may consist of manufacturer purchases from the supplier who then delivers goods to the manufacturer. Other internal transfers could comprise purchases from suppliers who deliver finished goods to the manufacturer, or the supplier delivering components to the manufacturer. The term Wire Transfer could also apply to the process whereby raw materials are moved from a lower level in the production hierarchy, such as the receiving plant to a higher level in the manufacturing process, such as the destination plant.
