It's easiest to explain what Product Types do by providing some examples. The following are a few common scenarios in which Product Types are used.
Example 1 - Different Temperate Zones
For example, you may have a temperature controlled facility in which you store and deliver products in three different temperature zones:
These three temperature zones can be implemented as different Product Types.
Then, when creating products each product must be of a specific type (either Chilled, Frozen or Ambient).
When Adding Warehouse Locations you can also specify which type they are (either Chilled, Frozen or Ambient), which by default will prevent a Chilled Product from being able to be allocated to a Frozen Location (however this can be overwritten by allowing the Warehouse Location to accept multiple Product Types, this is really useful if you want to allow your Chilled locations to store Ambient product for example. for more information on this see: Warehouse Location Product Types).
Different Product Types can then be used to affect Storage Charges, whereby you may charge different rates for Chilled Storage vs Frozen Storage.
In addition, Consignments also use Product Types as a field to control their charging (and sometimes allocation logic). Differing rates can be loaded depending on the Consignments Product Type. For more information on this see: How Transport Rates are Calculated
Example 2 - Different rates for Inside / Outside storage
Product Types can be used to charge different storage rates depending on whether an item is stored inside or outside.
In this case, three product types would be created:
- Inside Storage
- Outside Storage
All products would then be loaded as type General.
For the Warehouse Locations; outdoor locations should be loaded as "Outside Storage", while indoor locations as "Inside Storage". However, both should allow products of type "General".
Now, as both types of location can accept General products, the products coming in can be stored in either the Outside or the Inside locations, however the Storage Charges can differ for the different types.
Lastly, within the Customers Customer Charges, modify the "Charge Type Product Option" to "Warehouse Location" so storage is charged based on the type of the Location rather than the type of the product.
Example 3 - Dangerous Goods Handling
Similar to different temperature zones, you may have two types of products: Dangerous Goods and Non-Dangerous Goods, each of which need to be stored in specific areas.
Start by creating the two Product Types:
- Dangerous Goods
- Non-Dangerous Goods
Now, create both products and warehouse locations of the different types. Make sure when adding the Warehouse Locations that you do not allow them to store stock of the other type, for example: A Non-Dangerous Goods location should not be allowed to store a Dangerous Good.
Example 4 - Different rates for different pallet sizes
If you have a customer or customers with different sized pallets that can be stored throughout your warehouse, you can use product type to manage this requirement. Firstly, create the following product types;
- Standard Pallet
- Oversized Pallet
Now update the products to reflect the new product types for that customer or customers.
Make sure that the customer or customers setting in Customer Charges for the Charge Product Type option is set to products.
Then add the customers storage charges for each product type as below;