Warehouse receiving explained simply

The typical process flow of warehouse receiving generally includes the following steps

1. Goods acceptance

The first step in warehouse receiving is goods acceptance, when the supplier delivers the goods. The receiving company performs a quick visual inspection of the shipment for any obvious defects.
In addition, accompanying shipping documents are checked – for example, the unloading confirmation, the (CMR) waybill, and the delivery note. Key criteria are the correct sender and recipient, the correct quantity, and possible transport damage.

2. Incoming goods inspection

During incoming goods inspection, samples are checked for quality and the entire delivery is checked for completeness. If the inspection is completed without issues, the delivery is confirmed as proper. If errors are found, a claim can be raised.

3. Recording stock in the warehouse

The third step is to record the goods in the warehouse system. The received items are registered. To reduce complexity and avoid errors, companies typically use dedicated software solutions for this step.

4. Recording goods in financial accounting

To ensure correct bookkeeping and prepare for audits, goods are automatically posted in an ERP system to the appropriate accounts in financial accounting.

5. Storing goods

Finally, the received goods are distributed within the warehouse to the appropriate storage locations.

Throughout the entire warehouse receiving process, companies also capture and evaluate key performance indicators that provide insight into process quality. Examples include supplier reliability, the number of claims, or smooth quality controls. To make warehouse receiving more efficient, many companies rely on a checklist that covers the key process steps and provides valuable guidance, especially in the area of quality control.

For correct financial accounting, a distinction is made between inventory-based posting and expense-based posting of warehouse receiving.

With inventory-based posting, warehouse receiving is recorded as an increase in inventory, meaning the goods appear as assets on the balance sheet. This method is particularly suitable for companies with extensive stock levels that need to record the value of their inventory precisely.

By contrast, with expense-based posting, warehouse receiving is recorded directly as an expense, meaning the goods are immediately reflected in the profit and loss statement. This method is especially suitable for service providers or smaller businesses where stock levels are less relevant, or where goods are consumed quickly.

Typical measures to optimize incoming goods include

• Automating processes, for example through the use of barcodes and scanning capabilities.
• Training employees so that responsible staff know their tasks precisely and can perform them faster and without errors.
• Defining clear guidelines to ensure that warehouse receiving processes remain consistent and efficient.
• Reviewing supplier relationships and adjusting them if necessary. Reliable suppliers help ensure smooth warehouse receiving and improve the entire process.
• Adjusting the warehouse and its organization to place received goods appropriately and make them easy to locate.
• Continuously improving processes when deficiencies are identified or optimization opportunities are discovered.

In regulated industries such as pharma, medtech, chemicals, food, cosmetics, and biotechnology, warehouse receiving comes with requirements and regulations that go far beyond standard processes. These rules are essential to ensure product safety, quality, and compliance. The key specifics for warehouse receiving in these industries include:

1. Strict legal requirements

Regulatory authorities such as the FDA (Food and Drug Administration) in the US, the EMA (European Medicines Agency), the EU Cosmetics Regulation (EC No. 1223/2009), and EFSA (European Food Safety Authority) in the EU define precise requirements for handling materials and products. These requirements must be followed strictly to guarantee the safety of end products.

2. Quality control and testing processes

All incoming goods must undergo rigorous inspections. These tests include:

• Physical checks (e.g. weight, packaging, intact condition).
• Chemical tests (e.g. purity, composition of raw materials).
• Microbiological tests (e.g. contamination-free status, particularly relevant in the cosmetics and biotechnology industries).

Often, specific testing methods and protocols are prescribed, which must be documented and auditable.

3. Documentation and traceability obligations

Every item passing through warehouse receiving must be fully documented. Important elements include:

• Lot tracking: each lot of a product or raw material must be traceable across the entire supply chain.
• Certificates of conformity (e.g., for medical devices, certificates of analysis for pharmaceutical and chemical raw materials).
• Receiving logs: every inspection and test must be recorded to ensure complete traceability.

4 GMP (Good Manufacturing Practice)

GMP guidelines have a major influence on warehouse receiving in regulated industries. Among other things, these guidelines prescribe:

• Hygiene standards for handling products
• Specific storage conditions for temperature-sensitive or perishable goods (e.g., cold chains)
• Validation of processes to ensure that materials and products meet defined quality standards

More about GMP (Good Manufacturing Practice).

5. Supplier qualification

In regulated industries, suppliers often need to be qualified in advance and regularly re-evaluated. This includes:

• Supplier quality audits carried out by the company itself or by external auditors
• Supplier certifications proving compliance with regulatory requirements
• Continuous monitoring of supplier performance and adherence to quality standards

6. Regular quality audits and inspections

Companies in regulated industries are subject to regular quality audits by regulatory authorities or internal quality teams. Warehouse receiving is a critical control point, since errors at this stage can compromise the entire production process.

7. IT and data systems

Many regulated industries use specialized IT systems such as ERP (Enterprise Resource Planning) or LIMS (Laboratory Information Management Systems) to manage warehouse receiving efficiently. These systems must be capable of meeting strict requirements for data integrity, traceability, and reporting.

An ERP system plays a critical role as software for warehouse receiving because it enables automation of the entire process. Warehouse receiving can be fully digitized with an ERP system. Not only are incoming goods recorded in the ERP, but also quality controls and supplier relationship management are supported.

Scanner solutions are often used as part of this process. Barcodes are captured via handheld scanners to ensure error-free data entry into the system. A digitized warehouse receiving process significantly reduces errors by eliminating manual mistakes. ERP systems are also typically designed to comply with relevant regulations and provide reliable documentation in case of tax inspections or quality audits.

Quality audits in companies ensure that defined processes run consistently and correctly. To achieve this, the correct execution and complete documentation of warehouse receiving processes must be guaranteed. At the same time, internal audits help companies improve their own processes. For example, when auditing suppliers, potential improvements can be identified that accelerate and simplify warehouse receiving.

The industry-specific ERP solution Yaveon 365 can significantly optimize warehouse receiving processes – particularly for companies operating in lot-based process manufacturing. Here are some of the ways our solution supports efficient warehouse receiving:

• Lot tracking: Batch management is a core function of Yaveon 365. Each delivery is assigned to a batch that can be tracked throughout the entire production process. This enables complete lot tracking of goods from warehouse receiving all the way to the finished product.
• Automated quality control: At the warehouse receiving stage, automated tests and quality inspections can be triggered. Depending on the conditions of the delivery and the supplier, specific inspection plans can be activated to ensure incoming goods meet defined quality standards.
• Supplier integration: The system enables close integration with suppliers. Incoming deliveries are automatically matched with the corresponding purchase orders and supplier contracts, reducing errors and ensuring faster processing during warehouse receiving.
• Optimized warehouse location management: Yaveon 365 supports the allocation of warehouse locations for incoming goods. Integrated with warehouse management, the system suggests the best available storage location based on capacity and strategy. This accelerates the warehouse receiving process, enables space-efficient storage, and avoids unnecessary quarantine areas by clearly indicating which goods are available and which are blocked through variable batch status.
• Document management: All relevant documents – such as delivery notes and inspection reports – can be stored and managed directly in the system. This facilitates a paperless workflow and ensures that required information is always available.
• Real-time inventory updates: Once warehouse receiving is recorded in the system, stock levels are updated in real time. This guarantees that inventory is always accurate and transparent.
• Notifications and workflows: Yaveon 365 allows you to configure workflows and notifications. For example, automatic alerts can be sent to the quality department or purchasing team if specific conditions occur, such as detected quality issues.
• Compliance with regulatory requirements: The system supports adherence to industry regulations and legal requirements – an essential factor in regulated industries where strict guidelines for warehouse receiving must be followed.