Shipping and receiving process flow

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. When a delivery truck arrives at the unloading dock, the inventory clerk speaks with the driver concerning the shipment.

The Inventory checks her records to validate that the particular item was ordered and set for delivery. The inventory clerk signs her name on the delivery shipping notice as she accepts the shipment from the driver. After the shipping notice is signed, the warehouse personnel unload the crates from the truck. She counts the number of crates or boxes so the quantity matches the delivery driver's shipping notice.

Each crate is opened and an exact count of the received product is taken. Any discrepancies in the count from the invoice slip is noted so that the purchasing department can rectify the situation with the product manufacturer.

The inventory clerk checks all of the products for any damage caused during shipping. Damaged products are set aside so the manufacturer can retrieve the items and offer replacements. The delivery driver must review that there are damaged products in the shipment and initial the documentation regarding the damaged products before leaving the warehouse.

Depending on the manufacturer's policy, the driver may take the products at that time to bring back replacements. Warehouse personnel assign inventory numbers to products before stocking the items on shelves. The inventory clerk inputs all product information into the warehouse data system.

She syncs the data with all other departments requiring the information, including customer service, the sales department and accounts payable department. The inventory clerk files all written documentation such as the invoices and packing slips for auditing purposes. Based in southwestern Pennsylvania, Michelle Hickman has written since on an array of topics including lifestyle, writing instruction and financial services. Share It. About the Author.Another recounted how individuals ordered units of a product which they had not even used 30 units of in the previous year.

Uncoordinated buying led to different groups in the same facility paying different prices for the same goods and ordering uneconomically small quantities. To stop this kind of inefficiency and needless waste, we here at Process Street have created these 8 free logistics management templates.

By running these checklists you can make sure that your entire supply chain is consistently up to safety and efficiency standards. This means fewer wasted resources and a tighter delivery loop for your customers. Using these, any faults in your business logistics can be traced back to the checklist that was run, and the person who performed or perhaps neglected the process. Facility inspection checklist. Forklift inspection checklist. Inventory management process. ISO container inspection checklist.

Order processing checklist. Vehicle inspection checklist. Warehouse safety checklist.

shipping and receiving process flow

Managing a logistics facility can be a nightmare. All of that pain can be eliminated, however, by running this facility inspection checklist just once every month.

Internal Control Procedures for Warehouse Shipping & Receiving

From restocking water coolers and toiletries to fueling vehicles and checking safety equipment, this checklist contains everything you need to make sure your facility is prepared for your employees to get to work straight away when they clock in.

Click here to get the facility inspection checklist. Performing regular forklift inspections is vital to any operation uses them frequently.

Aside from the inconvenience of having a forklift break down in the middle of lifting a heavy object, a lack of at least monthly inspections poses an incredibly large safety hazard to the operator and those around them. At the same time, having regular inspections and documenting them effectively can prove difficult. Not only do you have to consistently perform every necessary check, but you also need to store each inspection in a way that can be easily reviewed later on.Successfully receiving inventory requires a well defined system and organized environment.

Receiving inventory effectively is the first step towards successful warehouse management. If you screw it up, everything else will be screwed up with it. One of the best ways to reduce inventory receiving errors is by appropriately preparing your dock for receiving inventory. This sounds obvious, but many companies still force their employees to work in cramped, small spaces without the proper tools or organizational processes for successful inventory receiving.

Your dock should be designed for sorting received inventory and preparing them for storage in their designated warehouse location.

In addition to having enough room for receiving inventory, the dock space should be well-organized and clean for easy access to the received goods. Tracking your inventory in real-time will help you catch mistakes before they cause damage further down your supply chain — such as miscounts, missing inventory, or incorrect inventory being stocked or shipped.

Their job is to guarantee receiving and putaway accuracy. They can watch for mistakes, point out problematic procedures, and reduce the instances of inventory damage. The same goes for power pallet trucks. Be careful when handling heavy loads by hand. You should also consider using conveyor belts to make the process of putting received goods away more efficient. To avoid the costly mistake of shipping the wrong items or not having enough to satisfy customer demand, you should always check that the inventory received is exactly what you ordered.

Making sure everything is right the moment you receive inventory will save you from a lot of headaches later on. What you need to accomplish 1 are the right procedures set forth by management and a few standard pieces of equipment. Our cloud-based inventory management system will allow you to know your stock levels in real-time, generate reports for future forecasting, and integrate with the rest of your business apps for painless accounting.

Book a Call Login Register. Make Receiving Inventory and Other Warehouse Processes Uncomplicated Our cloud-based inventory management system will allow you to know your stock levels in real-time, generate reports for future forecasting, and integrate with the rest of your business apps for painless accounting.

All Features Included. Try DEAR for 14 days, completely free! Get Started.When shipments arrive to replenish stocked inventory, your warehouse will go through what is known as a standard receiving process. Your inventory clerk should have a set procedure which he or she uses to make sure all paperwork and the shipment is received and in correct order. If there are ever any issues in the process, the procedure is there so that issues can be addressed in a timely and orderly manner.

In this article, we will go through the top techniques to optimize your warehouses receiving process in order to make it as smooth and error-free as possible, so that your customers are never without product. If you do not have the correct metrics, your warehouse receiving process will be off, and it will be impossible to design and implement an effective system. Metrics to gather include:. Before the receiving process begins, you will need to establish and enforce receiving requirements for your suppliers and shippers.

Your goal for them should be to present the cargo as quickly and efficiently as possible.

shipping and receiving process flow

Consider every aspect of work from their part that you would like to see during the receiving process, and jot all of this down to bring up to them. In order to successfully improve the warehouse receiving process, the correct amount of man hours will need to be allocated. Take a look at the number of shipments coming into the warehouse, and match your workload accordingly. The majority of the time, labor is the highest warehouse operational cost, so never neglect to carefully evaluate this and schedule labor shifts accordingly.

As soon as a delivery truck arrives to the unloading dock, your inventory clerk should be prepared for the shipment and ready to speak with the driver about the shipment being received. Any concerns, questions, or discrepancies about the shipment should be voiced before the inventory clerk signs her name on the delivery shipping notice as she accepts the shipment from the driver.

It is vital that your inventory clerk goes through proper training and has a good handle on this process so that signatures are not prematurely made for incorrect shipments. Once the inventory clerk signs the shipping notice, warehouse personnel should unload and count the product received to make sure the correct amount of the shipment has been sent to your warehouse. Every crate should be opened and an exact product count will need to be taken. Invoice slips should be included in each crate so as to keep a tally of product and note the purchasing department if there are discrepancies.

The inventory clerk will need to check all products being received for possible damage caused during shipping. If damaged items are found, they should be placed safely to one side so that the delivery driver can pick them up again and replacements should be brought back to the warehouse to replace the damaged product.

Again, it is extremely important that each item is looked over thoroughly so that the proper number of replacement products needed can be reported.

All products should have inventory numbers assigned to them prior to stocking the items on shelves. It is the inventory clerks job to input product information into the warehouse data system, sync the data with all other departments requiring the information, and then share this data with the inventory clerk who will file all written documentation for auditing purposes.For many businesses, inventory represents the largest physical asset the company owns.

These businesses store their inventory in warehouses until they need it in production or to deliver to a customer. The warehouse personnel handle the receiving process when inventory arrives from vendors. Warehouse personnel also manage shipping completed orders to customers.

1 | Automate Your PO Process with Purchase Order Processing

Warehouses rely on internal controls to ensure the inventory is recorded accurately and kept safe. Internal control procedures include using sequential numbering for all receiving documents, shipping documents and warehouse transfer documentation. Sequential numbering requires that each type of document includes a numbering system, and that each form is numbered in order. This allows the warehouse to account for each independent form using the form number. If any pages turn up missing, the warehouse personnel can identify the specific pages based on the missing numbers.

Internal control procedures also involve the use of video cameras throughout the warehouse. Video cameras monitor all the activities that occur within the warehouse, and all movement regarding the inventory. If inventory disappears, the company reviews the video recording.

Any unauthorized inventory transfers appear on the video recording and provide evidence of the actual event. Internal control procedures in the warehouse also incorporate segregation of warehouse responsibilities. Every activity that happens in the warehouse requires multiple employees to complete individual steps. For example, when a warehouse receives inventory, one employee documents the quantities and products received, while another enters that information into the computer system.

A third employee might compare these numbers to the packing slip from the vendor. The physical inventory audit represents an internal control procedure performed at least once per year.

shipping and receiving process flow

Warehouse staff physically count each inventory item, creating a record of the actual quantity of each. The physical inventory audit involves bringing in non-warehouse personnel to recount the inventory. Employees compare the second inventory count to the first and identify any discrepancies.

Basic Shipping Fulfillment Flowchart w/ Shipping Platform

Another group of employees recounts the inventory with discrepancies to determine the final count. Once the final inventory quantities are determined, the system quantities are adjusted to equal the count from audit. Share It.Warehouse Operations. Shipping is the final warehouse process, and one of the most important ones, for that matter. While customer experience greatly depends on the While customer experience greatly depends on the shipping process, the process itself depends on the preceding processes to varied extents.

shipping and receiving process flow

How efficiently the goods are picked greatly depends on the putaway process, while delivering them in good condition depends on the packing process.

As we can see, the shipping process should be executed not only in a proper way but also efficiently to avoid inefficiencies. This blog takes you through some of the warehouse operations that have a direct impact on the shipping process as well as some of the best practices to optimize it. It is essential to keep in mind that shipping is considered successful only if the right order is sorted and loaded, dispatched to the right customer through the right transit mode, and delivered on time.

Since shipping is the last warehouse process, it is important to keep in mind that all processes before it have a direct impact on its efficiency and effectiveness. If you need to process an order from a customer, communication is paramount. To avoid miscommunication and reduce costs, it is highly recommended to offer customers an online portal through which they can see their inventory, select the items they want to ship, and submit the order for processing. It is also recommended that the system provide special fields for customers to enter detailed instruction if needed, e.

While the portal will help address many of the problems related to the ordering process, other direct forms of communication such as phone, email, and messenger should also be available. This will reduce errors while increasing efficiency and accountability. The putaway process may seem too far off from that of shipping to matter. However, the location of goods has a great impact on shipping.

Warehouse Operations: Optimizing the Receiving Process

If goods have been appropriately placed considering order frequency, lead times can be shortened effectively, thus rendering shipping more convenient and efficient. Placing frequently ordered goods in the most handy location, occasionally ordered goods a little farther, and rarely ordered items farther still helps reduce picking time - Review ABC analysis here. Picking efficiency can be achieved by deploying the right picking methodology coupled with the right technology.

The rest of them do need checking until this figure is achieved. If you let this one slip, you may lose on accuracy. Packing comes just before shipping, and thus affects the latter immensely. Here is how you can increase the warehouse process flow efficiency in this case:. When it comes to pulling one order at a time, packing and labeling them immediately is recommended — here mobile printers come in very handy.

As an added measure, you may also want to insert documents and invoices as you pack each order. If there is a possibility of damage while in transit, add protective packing such as foam pallets, polystyrene, air-filled bags, bubble wrap, shredded paper, etc. You might also want to have personnel performing quality control if there is a history of pickers damaging goods. Since this is an activity that increases shipping time.

If the cost of the time lost exceeds the cost of installing and running packaging machines such as carton erectors and packing robots, automation is certainly the answer. Batch-picking does not allow packing and labeling as in the case of individual item-picking.

This method will require you to separate each order and check for accuracy during the packing phase. Once the orders have been checked for accuracy, they are packed into cartons depending on fragility, protective packing is added and labeled. Once pick and pack operations have been accomplished without error comes the turn for the shipping process itself. Here, you take the final measures to assign the transit mode and prepare shipment orders accordingly.Products Solutions Samples Buy.

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