WAREHOUSE

WHAT IS WAREHOUSE RECEIVING?

Warehouse receiving is the first step of the fulfillment

process and refers to the process of delivering, unloading,
and storing ecommerce inventory in a warehouse or
fulfillment center.
A well-established warehouse receiving process can help
make inventory management and fulfillment easier, cost-
effective, and more efficient.
 WAREHOUSE RECEIVING - OBJECTIVES
•
When we talk about running an efficient warehouse operation, the receiving
process is imperative. It’s important to keep in mind that the purpose is to
receive the right product, in the right quantities, in the right condition, weight,
and dimensions all at the right time.
• The proper receiving of goods will have a direct impact on all subsequent
warehouse processes. Let’s dig into it. A warehouse goes through a standard
receiving process when shipments arrive to replenish stocked inventory.
• The warehouse coordinator or inventory clerk has a set procedure to check all
received shipments and that paperwork is handled efficiently. If the warehouse
personnel encounter any receiving problems, the issues can be addressed
quickly so that the correct shipment is available for customers.
The standard warehouse receiving
process
• Warehouse receiving is not simply a matter of purchasing inventory and having it
delivered to your warehouse; rather, it involves several key steps that must be done
right to ensure the right items and quantity are being delivered and stored correctly.
Here is an overview of a standard warehouse receiving process:
1. Create proper documentation and then send your inventory Eg: Goods Received
Note. Goods received note (GRN), is a two-way document that acknowledges
delivery of goods by a supplier and their receipt by the customer. When a customer
issue a purchase order, the supplier is obligated to deliver them as per the terms of
their contract.
• Before inventory is ordered and delivered, a business owner must complete pre-receiving
tasks before sending inventory to a warehouse.
• During this stage, the business owner decides how much of each item will be shipped in
how many containers, as well as determine packaging requirements for each items (e.g.,
labeling criteria, the number of packages loaded per pallet, and acceptable package sizes
and weights).
• If you partner with a third-party company (3PL), you will want to check their pre-receiving
requirements as most of them have their own process for how to send inventory to their
warehouse(s) and often steps you must complete before you send them your inventory.
• In most cases, you will need to fill out a Warehouse Receiving Order (WRO) label and attach
it to each shipment with the barcode visible. This makes it easy to scan the shipment using
a warehouse management system (WMS) to pull up data on the order and make sure the
receiving inventory is accurate and stored in the right place.
• 2. Receive and unload stock
• If you manage a warehouse, the next step is to have warehouse receiving staff meet the
shipper at a unloading dock and unload the necessary cargo. Receiving staff should be
standing by to discuss questions or concerns regarding the shipment with the delivery driver.
• Ideally, truck beds should be packed back-to-front in the reverse order of the delivery
schedule so that warehouse workers can unload their inventory immediately without having
to move another other cargo in the way.
• Depending on the size and volume of the cargo, unloading sometimes requires heavy lifting
equipment such as forklifts and pallet jacks.
3. Count and confirm inventory
• As the cargo is being unloaded, the warehouse staff checks the contents of each
delivery, including the quantity, the integrity of seals, the product codes/SKUs, and
the overall condition of the cargo to ensure that what’s in the boxes matches what is
listed on the WRO and is expected to arrive.
• Stock counting and inspection can be time-consuming. To avoid hours at the loading
dock, some merchants require warehouse staff to count boxes or pallets, rather than
individual items, or choose to perform periodic random inspections. Or, you can use
an inventory scanner system to automate this process, or leave it up to a 3PL to take
care of.
4. Store and file product
• Once all inventory is unloaded and inspected, the final step in the warehouse
receiving process is organizing and storing new inventory in the warehouse.
• This step looks different for each business, depending on the type of warehouse, the
quantity and size of their items, and whether a business relies on a 3PL partner for
inventory storage.
• Depending on the size and quantity of products, inventory can be stored either on a
palette, a shelf, or a bin. If you partner with a 3PL, it’s up to their fulfillment staff to
store your inventory in the most efficient and cost-effective way to save you
on carrying costs.
If you own or lease a warehouse, businesses are in charge of handling storage based on
their fulfillment process. Your logistics staff will need to take charge of completing all documentation and
verification, as well as inputting the receive inventory’s information into the WMS or manually track it.
How to optimize your warehouse receiving
Deploy inventory management systems
• Inventory management systems help ecommerce businesses optimize their entire
supply chain by automating the process.
• By implementing an inventory management system, you’re given insights into real-time
inventory counts and more accurate numbers for inventory accounting purposes.
• Once your existing inventory is loaded into an inventory management system, you’ll be
able to view real-time stock levels and see your inventory numbers change
immediately after the warehouse receiving process.
• This type of software also makes it easy to set automatic reorder points to remind you
it’s time to order more product based on inventory forecasting predictions for each
SKU.
Track your inventory metrics
• A proper warehouse receiving process will make tracking inventory and logistics
costs much easier — especially if you store inventory in multiple warehouses or
fulfillment centers. By using technology to manage all inventory, you’re able to
monitor important distribution metrics all from one central dashboard.
• For instance, with analytics reporting tool, you can keep track of:
• Average storage cost per unit
• Total number of bins/shelves/pallets currently in use
• How much inventory is stored at each location
• By monitoring these metrics and translating them into meaningful change,
business owners can transform their data into a competitive advantage.
Run inspections
• A few minutes of caution upfront prevents the hassle and expense of sending back damaged,
missing, or incorrect inventory after it’s too late. Periodic inventory audits such as physical
counts and cutoff analyses also catch inventory imbalances before they get out of hand, and
will inform your next round of warehouse receiving.

• Inventory management tool can help you conduct inventory audits as needed, and gives you
real-time updates on stock levels and specific SKUs to make tracking inventory quicker and
easier.
What Are The Benefits Of An Optimized Receiving Process?
• An optimized receiving process aims to ensure that goods ordered from the suppliers are delivered in the
right quantities, in good conditions, and at the proper time. When your receiving procedures are faulty, your
inventory records become inaccurate, making it challenging to fulfill your customers' orders.

• Optimizing your receiving process will offer your business tons of benefits and save you a lot of stress and
issues. Here are a few benefits:

Ensure accurate stock counts

• When you have inaccurate inventory records, you will often disappoint your customers because of un -met
expectations. Having a precise count of your stocks can help you to prevent retail issues such as inventory
shrinkage, stockouts. Online shoppers want a positive customer experience, and ensuring accurate stock
counts mean customers receive a great customer experience.

• Also, it helps manage your sales predictions. For instance, creating a comprehensive receiving process flow
chart to check if the right products are received in the correct order, helps you know your inventory levels.
Plus, you can replenish a product that you predicted might be in demand or notify your customers when an
item is available.
• Prevent overstocking or understocking of products
• When you don't have enough goods in stock to fulfill your customers' orders, you are experiencing a stockout. In
contrast, overstock or dead stock refers to products that are not likely to be sold. Overstock items are because items
are expired, out of season, or not in demand.

• When you accumulate a considerable amount of inventory that doesn't yield any returns, then you have dead stock.
Often, dead stocks or stockouts are caused by inaccurate inventory count. By implementing an ideal warehouse
receiving process, you can accurately determine when your orders from the suppliers are incomplete or if you need
to order more.

• Provide an efficient inventory storage system

• An optimized receiving process can also affect how you store, manage and track your products. It makes it possible
to keep your inventory costs low while improving transit times and lowering shipping costs.

• For instance, the Warehouse Management System (WMS) is a valuable tool for tracking supplies through the
warehouse. WMS is used to scan inventory when received, mark and record where the items are stored, and
provide instructions on picking, packing, and shipping them when ordered.
• What Are the Warehouse Receiving Process Steps?
• Receiving goods into the warehouse is not just purchasing from the suppliers and having them delivered to your
store in a few weeks. To have a smooth warehouse operation, you need to be strategic about your receiving
process.

• Below are steps required in an ideal warehouse receiving process:

Proper documentation
• Before you order and receive your purchase, there are specific tasks that you must do to ensure that your cargo is
delivered correctly and in time. These tasks are called pre-receiving tasks.
• They involve proper documentation of your receiving requirements for the suppliers and shippers. Here, you will
decide and state your packaging requirements. The packaging requires will include:

• Label information
• Number of items per container

• Number of packages per pallet

• Number of items per carton, The required size and weight

Receiving and unloading
• The next step in the warehouse receiving process is to receive and unload your shipment. When the
delivery truck arrives at the unloading dock, your receiving staff should be prepared to meet with the
shipper to receive your cargo.
• The staff must be well-trained in handling the receiving process to avoid getting incorrect shipments. If
there are any issues, questions, or discrepancies, the receiving team should discuss them with the
shipper before signing off the shipping notice.
Inventory count
• After the receiving phase, the cargo should be unloaded, and each product received should be counted
to ensure that the correct quantity was shipped.
• The holiday shopping season is in full swing, and eCommerce sites like Amazon and Walmart are two
key examples that have an efficient warehouse receiving process to keep up with holiday sales. Although
inventory count is only one step in the process, it remains a crucial step for online retailers like Amazon
and Walmart.
• Inventory inspection
• The warehouse personnel should inspect each item for possible damage caused
during the shipping process. Damaged products should be set aside and returned for
replacements. Other features to check out include the product codes, the integrity of
the seals, products listed on the WRO vs. the products delivered, etc.
• Inventory storage
• This stage is the final phase of the receiving process, and it involves arranging and
storing the new products in the warehouse. The products can be stored on a shelf, a
pallet, or a bin. By partnering with a 3PL, you don't have to worry about this phase
because the staff will handle the storage process.
REFERENCE VIDEOS FOR RECEIVING
PROCESS
RECEIVING AND PUT AWAY PROCESS INBOUND RECEIVING - FM LOGISTIC
IN WAREHOUSE OPERATIONS VIETNAM

• https://www.youtube.com/watch?v=F2LIz • https://www.youtube.com/watch?v=nv4
wYsk9E QwsY0mBA