Warehouse receiving simple explained

A description of the goods receipt process essentially comprises the following steps:

1. Goods receipt

The first step in the goods receipt process is goods acceptance, where the supplier delivers the goods. The receiving company visually inspects the shipment once for defects.
In addition, accompanying documents are checked, for example the unloading confirmation, the (CMR) consignment note and delivery bill. The criteria are the correct sender and recipient, the correct quantity and possible transport damage.

2. Incoming goods inspection

During the warehouse receiving inspection, random samples are checked for quality and the entire delivery is checked for completeness. If the inspection is completed smoothly, the proper shipment is confirmed. If errors are found, a complaint can be made.

3. Recording stock in the warehouse

In the third step, the goods receipt is recorded as such in the warehouse. The goods received are registered. Companies generally rely on suitable software solutions to reduce complexity and avoid errors.

4. Recording goods in financial accounting

To ensure correct accounting and to be prepared for audits, the goods are automatically posted to the corresponding accounts in financial accounting in an ERP system.

5. Store goods

The goods received in the warehouse are now distributed to the appropriate storage locations.

Companies also record and check relevant key figures throughout the entire warehouse receiving process, which provide information about the quality of the process. Examples of this include the reliability of suppliers, the number of complaints or smooth quality controls. Many companies use a checklist to efficiently organize the warehouse receiving process. This covers the key process points and provides important information, particularly in the area of quality control.

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

With inventory-oriented posting, warehouse receiving is recorded as an increase in inventory, i.e. the goods appear as assets on the balance sheet. This variant is particularly suitable for companies that have an extensive warehouse and need to record the exact value of their stock.

In contrast, with expense-based accounting, warehouse receiving is recognized directly as an expense, i.e. the goods are immediately recognized in the income statement. This variant is particularly suitable for service companies or smaller businesses for which the warehouse is less relevant or the goods are consumed quickly.

Typical measures to optimize incoming goods include

• Automating the processes involved, for example through the use of barcodes and the ability to scan them.
• Employee training so that the responsible persons are precisely informed about their tasks and activities and fulfill them faster and without errors.
• Establish guidelines to ensure that processes relating to incoming goods run consistently and efficiently.
• Check relationships with suppliers and adjust them where necessary. Good and reliable suppliers ensure that warehouse receiving runs smoothly, improving the entire process.
• Modify the warehouse and its organization to ensure that the goods received are accurately placed and easy to find.
• Continuous improvement if inadequate processes become apparent or optimization potential becomes known.

In regulated industries such as the pharmaceutical, medical device, chemical, food, cosmetics and biotechnology industries, there are special requirements and regulations in warehouse receiving that go beyond normal processes. These regulations are necessary to ensure the safety, quality and conformity of products. The most important special features of warehouse receiving in these industries are

1. Strict legal requirements

Regulatory authorities such as the FDA (Food and Drug Administration) in the USA, the EMA (European Medicines Agency) and the EU Cosmetics Regulation (EC No. 1223/2009) in the EU as well as the EFSA (European Food Safety Authority) lay down precise regulations for the handling of materials and products. These requirements must be strictly adhered to in order to ensure the safety of the end products.

2. Quality control and testing processes

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

• Physical checks (e.g. weight, packaging, integrity).
• Chemical tests (e.g. purity, composition of raw materials).
• Microbiological tests (e.g. freedom from contamination, particularly relevant in the cosmetics and biotechnology industries).

Specific test methods and protocols are often specified, which must be documented and auditable.

3. Documentation and traceability obligations

Every product that passes through warehouse receiving must be fully documented. Important points are

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

4 GMP (Good Manufacturing Practice)

In regulated industries, GMP guidelines apply, which have a strong influence on warehouse receiving. These guidelines stipulate, among other things

• Hygiene regulations for handling products.
• Specific storage conditions for temperature-sensitive or perishable goods (e.g. cold chains).
• Process validation to ensure that materials and products meet the specified quality standards.

More about GMP (Good Manufacturing Practice).

5. Supplier qualification

Suppliers in regulated industries often need to be pre-qualified and regularly audited. This means

• Audits of suppliers by the company itself or by external auditors.
• Supplier certifications that prove that the supplier meets the requirements of the respective regulatory authorities.
• Continuous monitoring of supplier performance and compliance with 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 key point, as errors here can jeopardize the entire production.

7. IT and data systems

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

Quality audits are carried out in companies to ensure that specified processes run continuously and correctly. To ensure this, the various processes in warehouse receiving must run correctly and be fully documented. Conversely, internal quality audits help companies to improve their own processes. For example, auditing their own suppliers reveals opportunities for improvement, which in turn speeds up and facilitates warehouse receiving.

The Yaveon 365 industry-specific ERP solution can make a significant contribution to optimizing processes in warehouse receiving, especially in companies that specialize in the requirements of batch-oriented manufacturing. Here are some ways our solution can help in warehouse receiving:

• Lot tracking: Batch management is a central feature of Yaveon 365, assigning each shipment to a batch that is tracked throughout the production process. This enables a seamless lot tracking of goods from warehouse receiving to the final product.
• Automated quality control: Inspections and quality controls can be triggered automatically upon warehouse receiving. Depending on the warehouse receiving conditions and the supplier, specific inspection plans can be activated to check the quality of incoming goods.
• Integration with suppliers: The system enables close integration with suppliers. Incoming shipments can be immediately matched with the associated purchase orders and supplier contracts, reducing errors and ensuring faster processing in warehouse receiving.
• Optimized storage location management: Yaveon 365 helps to allocate storage locations for incoming goods. Thanks to the integration with warehouse management, the appropriate storage location is immediately suggested based on availability and storage strategy, which speeds up the goods receipt process. The system also enables space-saving storage and avoids unnecessary blocked storage, as the variable batch status clearly indicates which goods are available and which are blocked.
• Document management: All important documents, such as delivery bills and test reports, can be managed and archived directly in the system. This makes it easier to work in a paperless environment and ensures that the required information is always available.
• Real-time stock updating: Once warehouse receiving has been entered into the system, stock levels are updated in real time. This ensures that stock levels are always up to date, providing transparency and accurate inventory management.
• Notifications and workflows: Yaveon 365 allows workflows and notifications to be set up. For example, automatic notifications can be sent to the quality department or to purchasing when certain conditions (e.g. quality defects) occur.
• Compliance and legal requirements: The system supports compliance with industry regulations and legal requirements. This is particularly important in regulated industries where strict guidelines apply to warehouse receiving.