Receiving Stock Effectively

In most warehouses, the goods are received in the goods receiving bay. It is important that the goods receiving bay is kept clean and orderly. A disorderly or unclean good receiving bay may lead to...

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Accidents during offloading because of unclean or cluttered areas. Oil spillage, wet and unclean surfaces in the goods receiving area can lead to accidents during offloading.

Shrinkage: an unclean receiving bay gives room for easy pilfering.

Difficulty in taking stock of arriving goods. When there are other goods such as broken items it is very difficult to take stock.

Loss due to breakage because of cluttered and dirty areas. Oils spills and all other forms of spillage must be cleaned and cleared from the goods receiving bay.

Cleanliness and orderliness in receiving bay must be maintained according to store policy. Each store, wholesale or organization has a policy regarding cleanliness and orderliness in the receiving bay. The usual policies are how to dispose of broken goods, the various forms to be filled in and the reporting chain.

After ensuring that the goods receiving bay is clean, carry out the following when the goods arrive:

• Ensure that when the delivery truck or courier delivers goods, a waybill is handed out and that the goods are designated for the warehouse.
• When goods arrive, they are accompanied by a delivery note. This note outlines all the goods and their characteristics. It also informs the receiver of the number of goods, type, and date of delivery, from whom and to who receives the merchandise, quantity of merchandise.
• Check the number of pallets, cartons, cages, boxes or whatever means of container used received, against the quantity recorded on the waybill and the delivery note. (Also See The Next Section On Administration)
• Before goods are stored, the seals of the boxes are checked to ensure that they are not broken or tampered with – while the courier or delivery truck is still at the store. If so, it must be recorded on the delivery note and signed by the deliverer, courier and the person receiving the stock in the store. The manager should be informed that the seals were broken or tampered with. This is an important point because the knowledge of what happened on the containers or boxes helps the receiver as well as the deliverer to track any loss or shrinkage. Different organizations have different rules and regulations governing goods that are received in boxes or containers that do not comply with the delivery note. In most cases, the broken boxes are returned and goods returned note is signed.
• The received goods: Ensure that the seal numbers entered on the delivery note/waybill match the seal numbers on the boxes. It is important to ensure that the numbers entered on the seals match with those on the delivery note. If they don’t, there are several reasons for that, such as wrong goods that have been received or the right goods being lost. In most cases, a telephone call is made to the supplier to investigate the wrong entry of the goods.
• A Goods Received Slip (GRS) is then handed out to the transporter together with a signed delivery note.
• The received goods are then sorted out according to organizational requirements and characteristics of the goods or stock. The goods that need to be kept at a certain temperature are immediately taken to the refrigeration rooms and those that require other types of care such as chemicals and goods that react to heat are stored according to manufacturer recommendations.

The received goods are then separated and stored according to:

• Fragility – fragility goods are separated from the rest and stored separately.
• Perishability – perishable goods such as frozen foods, some types of medicines or chemicals, are separated and immediately stored in refrigerated rooms.
• Hazardous substances – hazardous substances such as gases, fuels and chemicals are stored separately according to the manufacturer's recommendations.
• Damaged stock is also stored separately.

In most organizations, the stock is recorded electronically and manually, and the tracking of wrongly recorded stock is easily done. The computer system in the store is used for processing the orders with the supplier. The orders are entered with a full description of what has been purchased, the price, delivery date and other relevant information. A Goods Received Slip (GRS) is usually filled in by the receiver. The goods received slip states the type of goods, the date the goods were delivered, and the amount of stock received. The stock room keeps the same information and uses it to supply the departments or the store.

Administrating Goods Received

Management may be informed of the delivery of consignment or goods by three different documents:

• Copy of purchase order or invoice
• An advice note from the supplier – delivery note
• A consignment note from a contracted carrier – waybill

All these documents can be summed up as being note accompanying delivery.

In most organizations it is acknowledged that when checking in deliveries in the warehouse, one should carry out the following procedures:

• Open each box separately and find the delivery note. If the goods are large equipment that might not require to be opened, a physical inspection by a qualified person is necessary.
• Ensure that the name or branch number on the delivery note is for your particular store or branch/warehouse.
• Write the delivery note number on the Goods Received Slips (GRS) in the space provided. When there is a computer-printed delivery note, it must also be recorded on the GRS.
• Pack out the stock in the price category, type and according to the characteristic of the goods.
• Count the stock in the different title categories or according to types.
• Check the quantity of physical stock in each price category and ensure that the quantity and the price of the goods are the same as what is recorded on the delivery note.
• When the stock you have counted and delivery note balances; the selling price corresponds with this and the total quantity is correct, sign it off.
• A manager/colleague normally double-checks the delivery and countersigns the delivery note.
• Once the delivery has been checked in, mark on the GRS.
• The delivery note together with the original GRS will now be sent to the next level (accounts department/regional office).
• Make sure you keep a copy of both as well as proof that it has been sent.

Notification Of Damage, Shortage Or Error

The goods delivered might be damaged, in short supply or underweight. The packaging might be damaged, missing packages, short weight, or incorrect quantity. It is important that the supplier is notified immediately. The receipt documents, consignment note and or delivery note must be filled in with the information of the missing, damaged, or underweight goods and handed over to the driver and at the same time the purchasing unit is informed about the damage, shortfall or error on the goods and the necessary documentation is made. Negotiations are made with the supplier about suitable corrective measures.

Performance Criteria for receiving of Goods:

• Goods are unpacked using correct techniques and equipment in line with workplace policies and procedures.
• Packing materials are removed and disposed of promptly according to workplace policies and procedures.
• Incoming goods are accurately checked and validated against purchase orders and delivery documentation according to workplace policies and procedures.
• Items received are inspected for damage, quality, breakage or discrepancies and recorded according to workplace policies and procedures.
• Stock levels are accurately recorded according to workplace policies and procedures.
• Secure storage of goods arranged according to workplace policies and procedures and government legislation.