Receiving, goods-in or in-handling is a crucial process within the warehouse. Ensuring that the correct product has been received in the right quantity and in the right condition at the right time is one of the mainstays of the warehouse operation. These elements are often termed supplier compliance.
However, it is our contention that once goods have arrived at the warehouse it is usually too late to rectify most receiving issues. We believe there are many steps that need to be taken before the actual act of receiving takes place.
Pre-receipt
First we need to ensure that the supplier presents the products to the warehouse in the most appropriate way. It is normally the buyer who specifies the product and therefore may not have knowledge of the goods-receiving operation.
Our suggestion here is that the warehouse manager is also involved in specifying and agreeing the packaging, items per carton, cartons per pallet,
All too often we see items arriving at warehouses in unsuitable packaging that overhangs pallets, has incorrect or badly positioned labels and with the goods packed in quantities that do not relate to selling-pack quantities. Our proposal here is that samples are ordered and despatched in their transit packaging to ensure full compliance.
All these problems take time to resolve and are better handled at the supplier prior to delivery.
Areas that need to be discussed both internally and externally prior to the
order being placed should include:
● size and type of cartons;
● type of transit packaging – cardboard, plastic, totes, metal stillages,
roll cages, pallets;
● palletized or non-palletized delivery of product;
● size (length, width and height) and type of pallets, eg euro pallet,
four-way entry;
● specific labelling such as product description, barcode and quantities;
● position of label on carton and pallet;
● carton quantities (inner and outer carton quantities, for example); and
● mode of transport, delivery quantity and frequency of delivery.
Delivery in the standard selling quantity is also crucial in assisting the manager to increase the speed of throughput and simplify picking. For example,
many companies still place orders on their suppliers in multiples of 12 yet most customers order in multiples of 10 thus causing considerable extra work in computing quantities, opening cartons and re-packaging.
In-handling
One of the main challenges for a warehouse manager is to match labour hours with work content. Handling a product the least amount of time possible (labour touch points) leads to reduced labour hours and as a consequence, reduced cost.
Depending on the operation, labour can be the single biggest cost within a warehouse. It can be between 48 and 60 per cent of the total warehouse cost depending on the amount of automation utilized. It is also the most difficult cost to control.
In-handling makes up approximately 20 per cent of the total direct labour cost within a retail warehouse.
Preparation
Prior to the actual receipt a number of processes need to take place. The first
step is to ensure that suppliers deliver into the warehouse when you decide, not
when it suits them. There will be exceptions to this. For example, it is difficult
for parcel delivery companies to adhere to booking times because of the nature
of their deliveries; however, pallet and full-load delivery companies expect to
be given specific delivery times, albeit this is not their preferred option.
By providing delivery times for each supplier or their subcontractors, you
are in control and able to match your work hours to work content. A booking-in
or dock scheduling system needs to be introduced. Many of today’s WMS have
a dock scheduling module these days however an Excel spreadsheet will suffice.
Initially you need to decide on when you are going to receive products into
the warehouse. Are you going to have deliveries throughout the day or limit
them to a morning shift, for example?
offloading
On arrival, the vehicle details need to be checked against the booking reference and the vehicle allocated a loading bay or location in the yard. Any vehicle seals need to be checked against the delivery paperwork. Prior to offloading temperature-controlled vehicles, the temperature history
of the vehicle whilst in transit needs to be checked, together with the current
temperature of the goods. Once the vehicle has backed onto the appropriate bay or has been positioned in the yard for offloading from the sides, the in-handling team should
have appropriate labour and equipment to hand, to efficiently manage the
offloading process. Where vehicles are unloaded in the yard this usually necessitates the use of
two lift trucks, one to unload the trailer and another to put the product away within the warehouse.
Checking
Once the goods are offloaded, you need to decide whether they need to be checked before put-away. The ideal scenario is to move inbound goods directly from the loading bay to the storage area or despatch area if goods are cross docked.
Cross docking
The goal of most warehouses is to increase throughput rates and reduce the amount of stock held. Cross docking is a process where products are moved directly from goods-in to the despatch bays. This replaces the need to place the product into store and any subsequent picking operation.
Cross docking needs the full support of suppliers as to how they present the product. This includes clear labelling and advance notice of arrival together with accurate, on-time delivery.
Cross docking requires systems to identify the product that needs to be cross docked and a process needs to be in place to recognize and alert the staff.
Once checked in, the products should be taken directly to the despatch area and their floor or temporary rack location recorded on the system, alerting staff that the product is now awaiting despatch. The details must be recorded in order to provide an audit trail.
Recording
Depending on the product, there could be a requirement to record more than just the standard data such as product code, description and quantity on arrival.
Other information could include batch or lot numbers and serial numbers. Barcode scanning, which we will look at in the following chapters, is ideal for this type of data capture.
Quality control
It is accepted that certain products will require more stringent checking on receipt. These include high-value items, food, hazardous goods, temperature-sensitive product and pharmaceuticals. New suppliers will also fall into this category.
An area close to the receiving bay should be set aside to spot check items on arrival. This needs to be done as promptly and as efficiently as possible so as to avoid congestion and to get the products onto the system quickly. If there are issues, the items need to be taken to a specific quarantine area or, if space is an issue, to the storage area – but must be identified as defective or awaiting the results of tests. Most WMSs are able to block access to products on the system, making them unavailable for picking until cleared for sale. A physical sign at the location is an additional failsafe.
Put-away
Many of today’s WMSs allocate product locations in advance and instruct the operator as to where to place the goods. This can be directly to the despatch area if the product is to be cross docked as discussed above, to the pick face as a form of replenishment or to a reserve or bulk-storage location.
In order for this system to work effectively, a great deal of information needs to be programmed into the system. This includes the following:
● size, weight and height of palletized goods;
● results of an ABC analysis or slotting, where fast-moving goods are
placed closest to the despatch area (an area we will cover later);
● current order data;
● family product groups;
● actual sales combinations;
● current status of pick face for each product;
● size of pallet locations; and
● weight capacity of racking.
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