Receiving Operations

The receiving function is to ensure that the supplier has delivered the right product, in the right quantities, in good condition and on schedule.

The activities for the various receiving dock in a warehouse or distribution operation includes:

Scheduling

Scheduling will take place once the pre-alerts for shipment had been received. Things to take note will be when and what time will the vehicle arrives, allocation of an empty bay for unloading, what material handling equipment to be used, the documents needed for receiving and the number of warehouse personnel to perform the operations.

Unloading

Various delivery truck-unloading methods are:

- Manual,
-Using conveyor equipment,
-Using manual or powered mobile pallet equipment,
-Using automatic trailer unloading-loading equipment.

Counting

Quantity Count Methods
-Manual Count Methods

Workers are needed to physically count every individual item.

Advantages

-Low capital investment
-Low handling of all types of SKUs

Disadvantages

-Require greatest number of employees which may lead to the possibilities of human error.
-Handles at a low volume
-Requires larger area for conducting the activity

-Mechanized Count Method

It is a scale count method, whereby the quantity of the items, cartons and truckload could be computed by using the scale.
When small items are counted, the receiving employee registers the weight of an individual item or several items onto the scale. They then allow for a container weight and place the entire carton quantity on to the scale. The scale indicates the carton count on the display screen.

Advantages

-Ability to handle high volume
-High counting accuracy
-Require small space area
-Lower number of receiving employees

Disadvantages

-Only handle a specific SKU types
-Requires higher capital investment

When cartons are counted, there are two alternatives, the pallet load scale and the truck sale.

Pallet load scale

Steps:
(1) the receiving employee are needed to weigh an individual carton
(2) weighs the pallet load
(3) reduces the pallet board weight from the pallet load weight
(4) performs maths calculation that provides the carton quantity per pallet load
(5) to verify, match the weight with the previous pallet board weight

Truck scale count

Steps:
(1) weighing the delivery vehicle prior to unloading
(2) unload the delivery vehicle
(3) weigh the empty delivery vehicle
(4) determine the weight difference between the two computed delivery vehicle weightings
(5) compare the truck weight difference to the purchase weight

Advantages

-The method could be use for all types of SKUs.
-Provide an accurate count
-Requires small staging area
-Handles a high volume
-Requires few employees

Disadvantages

-Requires additional capital investment
-Requires vendor’s cooperative in indicating the weight of the truckload or carton for each delivery.

Quality Check

Verifying the product quality and quantity as specified in the company’s purchase order.
Quality and quantity check methods

100 percent accept method

This method does not require quality and quantity check of the vendor’s product. This practice is based on the vendor’s excellent on its past performance. This means that the vendor had continuously met and outstandingly complies with the specifications agreed. This method is time and cost saving.
The excellent vendors are placed in the Approved Vendor List (AVL) and the receiving company would accept the vendor’s quality and quantity count.
This method is used for any type of product and allows for a high volume of product handled in a small warehouse square-foot space. However it requires periodic random checks on the vendor’s deliveries to ensure continuous vendor’s performance complying with the company’s standards and specifications.

Random Sample (7 to 10 percent) Method

In this method, only random samples were taken from the vendor’s deliveries for quality and quantity check. The random samples are about 7 to 10 percent of the vendor’s deliveries. If the checks on samples satisfy the standards and specification, then the whole inbound is accepted by the company.
This method is used for any type of SKU and handles a medium volume in a medium-sized warehouse.

100 Percent Verification Method

This method requires each and every inbound item to be inspected and count. This method applies especially to vendors who has previously supplied poor quality items or had shortages in their deliveries.
It is costly and time consuming and may prone to a delay in production, however it ensures every item meets the specified condition. This method is used for any type of SKU and allows a low volume to flow across the dock.

Verifying Of Damaged Products

When receiving employee discovers product damaged on a delivery vehicle, then the procedure is to verify the damaged.

(1) Written Document ( Report)

-Employee's description of the vehicle interior condition and the number of damaged cartons in the vehicle, and co-signed by the truck driver.

(2) Combination of written document with illustrations

-In addition to the report, photographs of the vehicle interior condition and damaged cartons need to be submitted together.

Dealing with Quality Related Items

As receiving department discovers product that does not meet your company's specifications or standards, then by company's policy, the product is held for the purchasing department to make decision.

-Temporarily hold the item and return it to vendor or wait for vendor to pick up.

-Perform 100% inspection of the product and separates the good quality from poor quality. The good quality is sent for storing. But the poor quality product will be held is separate holding area and wait for vendor pickup or authorization for shipment to vendor. Normally, temporary storage is required for 2 weeks.

Inventory Update

Inventory needs to be updated so that the information will be accurate in real time.

There are basically two methods:

(1) On-line Entry method

-The inventory is updated as the product moves from the receiving to storage area.

(2) Delayed-entry method

-Inventory is updated at a later time when the products moves from the receiving to storage area.

Product identification

Require employees to apply alphabetic or numeric markings to the product exterior. These markings serve as an instruction to the warehouse employee who handles the products.
Various product identification methods

-No identification method; relies only the vendor markings on the product exterior.

-Manual handwritten label method; receiving employee handwrites the product number on a self-adhesive label that is placed onto the product exterior.

-Machine printed human-readable label method; in which a computer-controlled machine-printed label is placed onto the product exterior.

-Machine-printed human- and machine-readable label method in which alphanumeric characters and a bar code appear on the surface.

Storage

After product identification, the product is packed into the SKU quantity in terms of a container, carton or even a pallet load, then they are put away to the main storage area or the picking area before it is picked for the next destination.