Receiving: The most critical warehouse process
IN managing a warehouse operation, the challenge is to ensure consistent high performance from staff (despite high turnover of staff ), ability to meet peaks in order volumes, and facilitate urgent orders. Only through process-driven warehouse operations this is possible.
The following warehouse processes can be differentiated: receiving, put-a-way to storage, storage, value added logistics, order picking, and shipping. In a series of columns I will discuss each warehouse process in more detail. Today the first warehouse process: receiving.
The warehouse customer service staff should be notified of any receipts before the cargo physically arrives at the warehouse, as the warehouse team needs to make the necessary preparations in the warehouse management system.
The shipper or logistics service provider sends a pre-alert to the warehouse through a so-called Advanced Shipment Notice (ASN).
The ASN forms the basis for comparison when the actual cargo arrives at the warehouse.
The receiving process is the physical receiving of cargo in lorry or container from the transporter. Receiving is the most critical process, as it has a direct impact on quality of the product accepted but also the inventory accuracy.
In the receiving process the actual cargo received is validated against the expected receipt for the shipment, covering aspects such as: the right product in the right quantity, dimensions and weight, expiry date, quality certificates, and time of receipt.
This will provide the basis for any possible claims against the supplier in case of discrepancies.
Second, the cargo condition is inspected. Hereby we look for damages, moisture spots, and possible reading of a temperature and humidity data logger present.
A data logger measures and records the temperature and humidity during the transportation journey, which is used for medicines and selected foods.
Does it fall within the specified bandwidth? Any damages discovered after the receiving process will be considered the warehouse’s liability.
Third, the cargo is prepared for put-a-way into storage. This last step should ensure that the cargo is placed on the right load carrier, often a pallet, which can be taken into the warehouse storage system.
Also the cargo should be given a label or pallet identification (ID), which allows it to be tracked in the warehouse management system.
Lessons learned
The receiving process, in particular the inspection of cargo, is the very foundation for high-performance warehouse operations, requiring the best people here.
People at receiving need to be very precise, have excellent visual inspection skills, and well versed with cargo documentation. Female staff is often much better in spotting the tiniest discrepancies, damages, or moisture spots as compared with male staff.
Ensure that enough resources are allocated to receiving activities, as mistakes made in receiving are costly! For example: product delivery issues cannot be claimed anymore from suppliers due to discrepancies or damages overlooked; cargo damaged in warehouse operations due to wrong stacking on pallet; late availability of the products in the warehouse due to late registration of products received in the warehouse management system; wrong products shipped to customer due to wrong pallet ID; and many more.
In case of a halal warehouse, receiving is an evident critical control point, protecting the halal integrity of the entire halal warehouse.
In summary, get your warehouse process right by getting your receiving right first.
Receiving is the most critical process, as it has a direct impact on quality of the product accepted but also the inventory accuracy.In the receiving process the actual cargo received is validated against the expected receipt for the shipment.This will provide the basis for any possible claims against the supplier in case of discrepancies