Selecting an inventory organization for a third-party logistics company

As discussed in the previous example, the inventory organizations in this model can be ABC, XYZ Sales-Electronics, and XYZ Sales-Entertainment because XYZ does not want its sales organization to see inventory of the other sales organization.

In situations such as third-party logistics, where the same physical location is shared across multiple clients, each client must be designated as an Inventory organization. If 3PL is dealing with multiple organizations of the same client, it can make choices of inventory organizations based on the segmentation levels that are mandated by the client or client organizations.