The warehouse receiving process is a pivotal part of the supply chain process because it sets the tone for all the subsequent operations, impacting the overall efficiency of your warehouse. It makes sure that all materials are accounted for and delivered to their specific locations. It helps with the efficiency of inventory management and fulfillment. And, last but not least, it is a critical part of the logistics process.
As businesses experience growth, they often face challenges that can complicate their warehouse receiving processes. This can result in issues with stock control and increased operational expenses. Unfortunately, these growing pains are all too common. However, in this article, we aim to provide guidance on how to navigate these challenges and optimize your warehouse receiving process. Read on to learn more about the importance of warehouse receiving, the standard process, common pitfalls, and how to enhance efficiency.
A breakdown of topics covered in this article:
Let’s start at the very beginning:
Understanding warehouse receiving
To begin, we must first take a look at what exactly warehousing receiving is - and why it is so important. So, gather around dear readers as we discuss what this process means and shine some light on why it is so impactful to businesses.
Though the term “warehouse receiving” sounds pretty self-explanatory, you can never really assume anything. So, with that said, let’s dig a little deeper into what this process entails …
Warehouse receiving is a fundamental step in the e-commerce fulfillment process. It involves delivering, unloading, and storing e-commerce inventory in a warehouse or fulfillment center. A well-established warehouse receiving process can simplify inventory management and make fulfillment more cost-effective and efficient.
Who doesn’t love saving some extra dough, am I right?
The standard warehouse receiving process
When it comes to the receiving process, did you know that warehouse receiving isn’t merely about ordering inventory and having it delivered to your warehouse?
In fact, warehouse receiving encompasses several crucial steps that must be executed correctly to ensure the delivery and storage of the right items in the correct quantities.
Now, what are we waiting for? Let’s take a look at those crucial steps.
#1 Documentation and inventory dispatch
Before ordering and delivering inventory, a business owner must complete pre-receiving tasks before dispatching inventory to a warehouse. During this stage, the business owner decides the quantity of each item to be shipped and determines the packaging requirements for each item. If you partner with a third-party logistics company (3PL), you will need to make sure to follow any of their pre-receiving requirements. #2 Match the delivery to a purchase order
Once the inventory reaches the warehouse, the warehouse receiving team must first make sure that the delivery has come to the right place. This is done by matching the details of the consignment note to the purchase order.
#3 Check the quantities delivered & make sure products are not damaged
The purchase order should also be used to check that the delivery matches both the products and the quantities listed.
Also, before accepting the delivery, it is important to conduct a quality check on the goods received to make sure that the items are not damaged or malfunctioning. Of course, it is not always possible to check every single item received, especially if the shipment is large. So, in those circumstances, a spot check can take the place of a review of every single product.
If any damaged items are found in the delivery. The receiving team will record the extent of the damage and notify the supplier so next steps can be taken.
#4 Update quantities received
Next, it is time to log the items received into whatever system, spreadsheet, or platform the business uses to keep track of inventory. Usually, businesses use a warehouse management system. But no matter how this information is recorded, it is best to do it sooner rather than later to ensure that the stock can be allocated to new orders right away.
#5 Storing and filing product
The final step in the warehouse receiving process is organizing and storing the new inventory in the warehouse.
And voila! The standard warehouse receiving process is complete.
Common pitfalls in warehouse receiving
If warehouse receiving was a video game, the game's objective would be to unload, check, and store inventory efficiently and accurately. Easy enough, right? Well, not exactly. When warehouses or businesses lack a set procedure or a checklist for receiving, they risk ending up with inaccurate or lost inventory, which can impact accurate inventory counts.
How to optimize your warehouse receiving
As with any change in a current process, some investment is required to optimize the warehouse receiving process. Some investments might be more time, but in some cases, that investment will be a monetary cost. Luckily, there are several ways to optimize the warehouse receiving procedure. So, you have options.
Here are some best practices to help you get started …
Track inventory metrics
A proper warehouse receiving process will make tracking inventory and logistics costs much easier. By using anything from a spreadsheet to software created for inventory management, you can keep an eye on all your inventory and important distribution metrics.
Run inspections
Periodic inventory audits like cycle counting can help catch inventory imbalances before they get out of hand and will inform your next round of warehouse receiving.
Double-check documents
Double-checking that the received inventory matches your purchase order can save the trouble of correcting mistakes.
Deploy inventory management systems
Inventory management systems help e-commerce businesses optimize inventory and their entire supply chain by helping automate the process. These systems can also provide real-time inventory counts and more accurate numbers for inventory across locations, platforms, and channels.
Benefits of an optimized warehouse receiving process
Whether you dedicate time, money, or both, there are some impressive benefits that can be expected when you optimize the warehouse receiving process. Here are just a few:
More accurate stock counts
Accurate inventory counts are crucial for a brand's success in effectively managing their stock, predicting demand, and maintaining a profitable margin.
Fewer stockouts and dead stock
An optimized warehouse receiving process will help prevent both stockouts and overstocking. The issues with inventory receiving can be caught early on, such as the supplier not delivering the quantity ordered.
Efficient inventory storage
Optimizing your warehouse receiving process can also strengthen your inventory storage system. Once the inventory is scanned when it is received, staff can easily retrieve instructions on how to unpack and store the inventory.
Warehouse receiving FAQs
To help arm you with as much information about warehouse receiving as possible, I have scoured the internet and have collected some frequently asked questions. Here are answers to some of the most common questions about warehouse receiving.
How do I improve warehouse receiving?
Tools like inventory management or warehouse management software can go a long way in improving warehouse receiving, as they allow you to quickly scan new inventory and ensure it’s accurate and stored correctly.
What is involved in warehouse receiving?
The standard warehouse receiving process comprises several stages. These include establishing receiving requirements, ordering inventory, unloading the cargo, counting the stock, and storing each item in its designated location in the warehouse.
What is pre-receiving in a warehouse?
Pre-receiving is a preparatory stage of the warehouse receiving process that e-commerce business owners must complete before any inventory is shipped or delivered to a warehouse.
Think a question is missing? Let us know.
Using a warehouse management system (WMS) to improve warehouse receiving
To optimize your warehouse receiving process, it never hurts to have the right tech in place. A warehouse management system (WMS) comes equipped with not only inventory management features, but also supports everything from warehouse operations to vendor management to shipping. It can help your warehouse reduce picking errors, manage inventory in real time, and fulfill orders faster.
Can a WMS assist you?
Zenventory is here to help!
Zenventory offers an incredibly robust and highly efficient warehouse management system. This system has been designed to streamline your warehouse operations, making the process more efficient and effective.
At Zenventory, we understand that every business is unique and that’s why we are committed to helping you optimize your warehouse receiving process. By using our Warehouse Management System, you can streamline your operations, improve efficiency, and ultimately enhance your business operations.
We invite you to contact us today to learn more about how Zenventory’s Warehouse Management System can enhance your business operations. Our team of product experts are always ready to provide you with the information you need to make the best decision for your business. Don’t wait - reach out to us today and discover how Zenventory can transform your warehouse operations.
