Managing inventory efficiently becomes increasingly challenging as the volume of goods moving through a warehouse increases. All inbound shipments must be received, inspected, documented and placed in the correct storage area correctly. Any mistake in receiving will result in discrepancies in inventory, delays and extra work.
One often-overlooked stage that can make the inbound process more efficient is pre-receiving.
What Is Pre-Receiving in a Warehouse?
Pre-receiving is the process of preparing for and verifying an incoming shipment before the goods are formally received and added to warehouse inventory.
It serves as a buffer between goods arrival at the warehouse and final inventory receiving process. In the process, warehouse staff confirm the details of the shipment, review incoming goods and check for any errors before the goods are officially accepted.
Pre-receiving is the process of inspecting the contents of a shipment and comparing it to the purchase receipt, transfer paperwork or shipping records for a shipment that is being brought into the warehouse.
The objective is simple: ensure that the warehouse knows what is arriving, what should be received and whether the shipment matches the expected inventory before it enters the storage process.
How Does the Pre-Receiving Process Work?
A pre-receiving process is usually structured as follows:
1. Share Inbound Requirements With Suppliers and Carriers
Suppliers, shippers and carriers should be notified of the warehouse's receiving needs prior to the shipment.
This can include:
- Labelling requirements and label placement
- Product identification and required information
- Number of items per carton or package
- Package dimensions and weight
- Pallet configuration or loose-cargo requirements
- Required shipping and receiving documentation
- Delivery and appointment requirements
It helps to eliminate confusion at the warehouse when the shipment arrives by pre-provision.
2. Verify the Incoming Shipment
Once the goods have been received the warehouse staff carries out a simple visual check. The team will be able to inspect the shipment for:
- Visible damage
- Packaging condition
- Correct labels
- Number of cartons or packages
- Product identification
- Signs of tampering or mishandling
The observations can then be recorded in a pre-receiving report for further verification.
3. Match the Shipment With the Expected Inventory
The quantity and kind of goods received should be checked against the appropriate document, e.g. Bill of Lading, Purchase Order or Transfer Record.
Any discrepancies should be spotted before the shipment is completely received into stock.
This may include:
- Missing items
- Excess quantities
- Damaged products
- Incorrect products
- Unwanted or unexpected goods
- Documentation mismatches
If these issues are identified early, it is easier to communicate with the supplier/carrier and resolve the discrepancy.
4. Document and Communicate Discrepancies
Any defective, missing or incorrect goods should be reported as such and communicated to the supplier, shipper or carrier to whom the product is due.
Damaged goods can be returned to the carrier, rather than being moved further into the warehouse, where applicable. This prevents problematic inventory from entering the regular storage and fulfilment workflow.
5. Complete Receiving and Storage
After the shipment is verified, the goods can be formally received to the inventory of warehouse. The items can then be assigned to their respective storage locations, zones or departments.
The receiving information should be also updated in the warehouse inventory system, as well, to ensure that there is same stock in the system as in the warehouse.
Benefits of Pre-Receiving in Warehouse Operations
A good pre-receiving process can enhance the efficiency of in-bounds and also the accuracy of inventory.
1. Improves Receiving Efficiency
Suppliers and carriers are more likely to deliver shipments in the proper format when they know the warehouse's needs ahead of time. This decreases the need for extra clarification, manual handling and delays at the receiving dock.
2. Reduces Inventory Discrepancies
Pre-receiving is another verification point prior to the inventory being officially recorded. Comparing shipment amounts and product details to the expected inventory allows for fewer issues with shipment quantities, packages missing or inventory records being incorrect.
3. Helps Plan Warehouse Resources
If you are aware of what to expect, it enables your warehouse staff to be ready for the shipment.
Plan the warehouse:
- Dock availability
- Storage space
- Material-handling equipment
- Workforce requirements
- Putaway locations
- Receiving schedules
This can help to alleviate congestion and prevent unnecessary operating expenses.
4. Enables Faster Issue Resolution
It's easier to investigate discrepancies if they are detected at the point of receipt. The warehouse can resolve the problem while the order is still being placed, the shipment is still in the warehouse, the documentation hasn't been handed out yet and the carrier hasn't picked up the order yet, thus avoiding the problem being discovered during order fulfilment or stock reconciliation.
5. Supports Better Inventory Accuracy
Perfect receiving is essential to good stock control. Properly verifying incoming goods before they're entered into inventory allows businesses to ensure that they have the right inventory and are keeping better track of what they have in their records.
This is especially crucial for businesses with a high volume of orders or lots of SKUs.
Role of a Warehouse Management System in Pre-Receiving
A Warehouse Management System (WMS) can be used to automate a number of pre-receiving tasks and standardize the process.
A WMS can offer a way to see what is expected inbound and capture the receiving data, verify inventory and assist warehouse staff in assigning items to storage. Combined with purchase orders, inventory records and other systems involved in the supply chain, the WMS can also help to minimize manual data entry and enhance the visibility of inventory received.
Technology can't take the place of a physical inspection and operational checks, but it can help to make the overall pre-receiving process more structured, accurate and visible.
Best Practices for Effective Pre-Receiving
Businesses need to have clear and consistent processes to maximise the benefits from pre-receiving.
The following are some tips for useful practices:
- Establish standard receiving and labelling requirements of suppliers.
- Share Inbound shipment information prior to goods arrival.
- Verify using purchase order or transfer records.
- Record discrepancies as soon as possible, not through a reconciliation later.
- Isolate damaged or lost products from confirmed stock.
- Design storage areas and resources in advance of large volume shipments.
- Implement a WMS to boost visibility and accuracy in inventory management.
- Monitoring and resolving repeat receiving discrepancies with suppliers/carriers.
Conclusion
Pre-receiving is a small but important component of efficient warehouse management. By verifying incoming shipments before formally receiving them into inventory, businesses can reduce discrepancies, improve receiving efficiency and prepare their warehouse resources more effectively.
For businesses handling frequent warehouse transfers or high volumes of inbound inventory, a structured pre-receiving process can create greater control over the movement of goods from the receiving dock to storage.
Combined with a capable Warehouse Management System, pre-receiving can become an important part of a more accurate, organized and efficient inbound warehouse operation.
