How MurrCloud Works - Inventory & Operations

Eight warehouses. One inventory model that actually reflects reality.

Owned warehouses, Amazon-managed FBA stock, goods still on the water, trade show inventory, and units waiting on repair - all behave differently, and all need to be modeled differently. Here's how MurrCloud routes orders and stock across a real multi-warehouse network without blending things that shouldn't be blended.

Reading time: 8 min | Best for: importers, distributors, multichannel sellers with physical inventory | Setup time: Half a day (one-time)

01 - The Problem

Not all inventory is the same kind of inventory.

Take Apex Industrial Supply, an importer running owned warehouses in two countries, Amazon FBA in both, goods in transit from an overseas supplier, a trade show circuit, and a repair operation for returns.

A single "Inventory" number in most systems blends all of that together - stock that can ship today, stock Amazon controls, stock still on a container ship, stock sitting at a trade show booth, and stock that might be defective. None of those should be treated the same way, and treating them the same way quietly corrupts your numbers.

Unsellable stock looks sellable

Goods in transit or awaiting repair show up in available inventory if there's no dedicated location for them.

Defective units blend into good cost

Without quarantine, a unit needing repair gets averaged into the cost of inventory that's actually fine.

Channel costing gets murky

Trade show and Amazon-fulfilled sales need their own stock source to get accurate, defensible COGS.

02 - The Warehouse Model

Eight locations. Two fundamentally different roles.

Every warehouse falls into one of two categories: sellable stock that can ship directly to a customer, or non-sellable stock that must move through an internal transfer before it can be sold. Getting this split right is the foundation everything else in this page builds on.

#WarehouseTypeRole
1 Domestic Warehouse - Canada Owned Sellable Fulfills Canadian customer orders
2 Domestic Warehouse - US Owned Sellable Fulfills US customer orders
3 Amazon FBA - Canada External Sellable Amazon-managed, deducted via order sync only
4 Amazon FBA - US External Sellable Amazon-managed, deducted via order sync only
5 In-Transit - Canada Owned Non-sellable Goods purchased overseas, en route to the Canada warehouse
6 In-Transit - US Owned Non-sellable Goods purchased overseas, en route to the US warehouse
7 Trade Show Owned Sellable Stock allocated for trade show / sample cash sales
8 Repair Centre Owned Non-sellable until repaired Returned/defective units, refurbished, then returned to sellable stock
03 - Routing Customer Orders

Orders route by country. Automatically.

Domestic orders route between the Canada and US warehouses based on the customer's country - set once, applied forever. On the customer record, under Sales & Purchase, a default warehouse is configured per customer: Canadian customers default to the Canada warehouse, US customers default to the US warehouse.

The sales order's warehouse field then defaults automatically from that customer setting - no one has to remember to pick the right warehouse order by order. For a large customer base, this default can be set in the same pass as fiscal position assignment, so the rollout happens once.

04 - In-Transit Warehouses

Goods that have left the supplier but haven't arrived yet - split by destination.

Rather than one shared location for goods en route from an overseas supplier, each destination gets its own dedicated In-Transit warehouse: In-Transit - Canada and In-Transit - US. The destination is known the moment the purchase order is placed, so there's no ambiguity to track later, and reporting on in-transit value by destination is a direct query instead of a manual split.

01
PO placed with the overseas supplier The destination warehouse is set on the purchase order from the start - Canada or US - same as any other PO.
02
Goods received into the correct In-Transit warehouse The receipt posts into In-Transit - Canada or In-Transit - US, matching the PO's destination, instead of directly into a domestic warehouse.
03
Landed costs applied while in transit Once freight and duty bills arrive, they're processed while stock is still in its destination-specific In-Transit warehouse - before any of it has had a chance to sell.
04
Internal transfer on arrival When the shipment reaches port, an internal transfer moves stock from In-Transit - Canada to the Canada warehouse, or from In-Transit - US to the US warehouse. No splitting required, since each warehouse only ever holds stock bound for one destination.
Why this matters for COGS. Applying landed costs while stock sits in its destination-specific In-Transit warehouse - before the internal transfer to a domestic warehouse - largely eliminates the "already sold before the freight bill arrived" variance issue covered in the companion Landed Cost & Automatic COGS page. The cost bump happens before the stock is anywhere near being sold, and splitting by destination means in-transit valuation for Canada-bound versus US-bound goods is never blended together.
05 - Trade Show Warehouse

Show inventory, tracked separately, ties directly to channel COGS.

Stock allocated to a trade show gets its own warehouse - and because sales from the show pull from a dedicated location, channel-level cost of goods sold for cash sales becomes a real number pulled straight from warehouse valuation, not an estimate.

Before the show
Internal transfer out

Units being brought to the show move from a domestic warehouse to the Trade Show warehouse.

During the show
Cash sales fulfilled on-site

Sales post to the Cash Sales channel; cost of goods sold posts at average cost directly from Trade Show warehouse stock.

After the show
Internal transfer back

Unsold units transfer back to the domestic warehouse, re-entering normal sellable inventory instead of sitting untracked.

A tighter number than allocation. Because trade show sales ship from a dedicated warehouse, channel-level COGS for those sales comes directly from that warehouse's stock valuation - a more precise figure than the revenue-share approximation often used for channel costing elsewhere.
06 - Repair Centre

Returns get quarantined before they touch sellable stock.

Customer returns route directly into the Repair Centre - never back into a domestic warehouse - so potentially defective units never mix into sellable inventory before they've been inspected.

01
Customer return received Routes directly into the Repair Centre, isolated from sellable stock.
02
Refurbishment performed Parts and labor costs are added via a rework or repair order, increasing the unit's average cost before it can return to sellable stock.
03
Repaired -> internal transfer back, or scrapped If repaired successfully, an internal transfer moves the unit to a domestic warehouse at the new repair-inclusive cost. If not repairable, it's scrapped, writing the remaining value off to a loss account rather than letting it sit in inventory indefinitely.
Why quarantine matters for cost accuracy. Routing returns through a dedicated Repair Centre before they rejoin sellable stock keeps average unit cost accurate. A defective unit needing $30 of parts doesn't get blended into the average cost of otherwise-good inventory until that repair cost has actually been added.
07 - Routing Summary

Which warehouses route automatically - and which don't.

Only two of the eight warehouses participate in automatic, order-by-order routing. The rest are manual or operational transfers by design - they should never be a source of automatic order fulfillment.

WarehouseAuto-routing?Set by
Domestic - Canada Yes - default for CA Customer default + automation rule
Domestic - US Yes - default for US Customer default + automation rule
Amazon FBA - CA / US No Amazon order sync only
In-Transit - Canada No - never a fulfillment source Manual, on PO receipt only
In-Transit - US No - never a fulfillment source Manual, on PO receipt only
Trade Show No - manual only Manual, during show dates only
Repair Centre No - never a fulfillment source Manual, on return receipt only
Worth verifying on setup. The Amazon connector's order sync must deduct stock from the FBA-CA or FBA-US warehouse specifically - never from a domestic warehouse. If this isn't configured correctly, FBA inventory levels and channel COGS will silently drift from what Amazon actually holds.

Map your real warehouse network into MurrCloud.

Book a 30-minute walkthrough and we'll model your actual locations - owned, FBA, in-transit, and everything between.

Book a Demo Read: Landed Cost & COGS