Does your team have a goods receiving process to follow for new deliveries? This is an important warehouse function that helps keep track of incoming stock, and identifies any issues with shortages or damaged goods. Read on to learn more.
As part of our series on effective warehouse processes, we’re taking a closer look at goods receiving.
What is ‘goods receiving’?
‘Goods receiving’ is the function of checking items delivered to the business, either coming in as new stock or as supplies. This includes inspecting the quality, condition, and quantity of any incoming goods, and allocating them to a space in the warehouse.
Why is it important?
All items purchased by the business serve a specific function, whether they are supplies to be used internally, or stock to be on sold to customers. Keeping track of all items coming into the warehouse ensures that that the right products are received and promptly stored in an appropriate place.
Following a goods receiving process can help to maintain an efficient warehouse and identify any issues with suppliers.
Create a goods receiving process
1. Match the delivery to a purchase order
First, ensure the delivery has come to the right place by matching the details on the Consignment Note to the Purchase Order raised by your business.
The Purchase Order should also be used to check that each item matches the description and quantities ordered. Generally, the boxes or cartons will have a description of the item and quantities of its contents.
Ensure you record the following for each new delivery:
• The date and time goods arrived
• The name of the delivery partner and driver
• Check off quantities and description of goods against purchase order
• Note any discrepancies
• Names of the personnel who performed these checks
Maintaining accurate reports is essential for accurate bookkeeping as well as resolving any disputes that may arise in the future regarding the items or supplier.
If there is no purchase order or record of the order, check with your supervisor or purchasing department before rejecting the goods.
2. Check products are not damaged
Before accepting the delivery, it’s important to conduct a quality check to ensure the items are not damaged or malfunctioning.
It’s not always feasible to open each carton and check every single item, particularly for large shipments. So in these cases you may wish to complete a spot check rather than open each and every carton.
Check for signs of breakage or faults, and ensure all items are as described on the purchase order.
If any damaged items are found in the delivery, record the extent of the damage on the consignment note and immediately notify the supplier with details of the issue to discuss the next steps.
3. Log received items into your inventory
Enter the items you have received into your warehouse management system as soon as possible, including the date and quantities received. This will allow the stock to be allocated to new orders right away.
4. Allocate storage space for goods
It’s important to pack away a new delivery promptly to ensure no items become lost or damaged.
Supplies should be distributed to the appropriate person in the business, or packed away in the usual space to be accessed when required.
For goods received in as stock, these items will need to be allocated a space in the warehouse for storage until ready to be picked for an order.
5. Notify your accounts payable department
Send a copy of the signed and dated consignment note to your accounts payable team. This information can then be matched with the invoice from the supplier to ensure payments are only made for items that were actually received.