Parent Child Company Hierarchy

A parent company is typically defined as the Business Entity that is owning the business. This business could operate in the following ways which can be modeled in WMS.

a) A Typical business which owns/leases and runs multiple Warehouses where the business’s inventory is stored and distributed.

b) A logistics service provide (LSP) or also commonly referred to as 3PL ( 3rd Party Logistics ) service provider. In this case the parent company or business owns a number of warehouses and operates them to provides services to other companies/businesses who want to store, manage and distribute their inventory.

Parent Company

The following diagram shows the structure for a Parent Company:

3PL Parent Company

The following diagram shows the structure for a 3PL Parent Company:

Depending on the number of customers and the DCs, this structure helps the 3PL to view and manage their warehouses accordingly through eligible Companies in facility at the Facility level.

You can view and manage the company’s inventory to be stored in the DC via Companies in facility action button in the Facilities UI.

To add company to the facility, select the facility > Companies in facility. If the facility has multiple company, you can choose the child company from the Company Code drop down.

In the following figure, the first drop-down denotes a facility (DC), while the second drop-down denotes the companies in the environments.