ShipHawk Blog | Shipping Software for eCommerce

Understanding WMS Receiving

Written by Jackie Kabiri | Jul 26, 2024 6:29:41 PM

The world of warehouse management is complex and challenging, with each business having unique needs and requirements. When working with a Warehouse Management System (WMS), the first step for your business is managing how items arrive at your warehouse: WMS receiving.

What is WMS Receiving?

Visualize this: a package arrives at your warehouse, no label or accompanying description for what could possibly be inside the mysterious box. You likely would have no idea what to do with the package, where to put it, or if the package was even meant to be sent to your location. This is where the WMS receiving process comes in. Receiving provides the necessary documentation and instructions so that your warehouse workers know exactly what and where the item should go when it arrives. 

Warehouse receiving is the process of unloading, documenting and stocking inventory in a warehouse. This first stage in warehouse operations is one of the most important, ensuring inventory accuracy and that the rest of the process can be continued uninterrupted. 

An efficient WMS receiving process can increase your business’s productivity, reduce expenses and provide a positive customer experience. Additionally, a well-functioning system allows for accurate and timely shipments, meeting SLA every time.

Receiving Types

Your business’ WMS deals with a few types of receiving, each with their own detailed processes and necessary documentation. ShipHawk’s WMS uses real-time receiving in order to provide the most accurate and up-to-date information for warehouse operators.

Purchase Orders

Purchase orders reflect the goods purchased from vendors and suppliers. The WMS will include all transactions from the ERP in the form of item receipts to process the inventory at the warehouse.

Transfer Orders

When inventory is moved from one warehouse to another, you are completing a transfer order. With these shipments, both a fulfillment order from the departing warehouse and an item receipt for the receiving warehouse are created in the WMS.

Return Authorizations

In the case that a customer wants to return an item, the authorization is processed through the ERP when received at the warehouse. An item receipt is created when the warehouse operator processes the return against a return authorization. Operators can then add comments to determine where the return should go (back to stock or out of inventory).

Advanced Shipping Notices (ASNs) For Inbound Shipments

Additional documents are also sometimes necessary to add more detail about an inbound shipment. These documents, called Advanced Shipping Notices, are sent from vendors and suppliers to provide information about a pending shipment. They are used to enhance communication and better plan out the receiving process, detailing the items, quantities, carrier and expected delivery date. Warehouse operators can also use the ASN as a receiving document when the order is eventually shipped and the receipt is processed at the warehouse.

Why is WMS Receiving So Important?

WMS receiving sets the stage for the entire fulfillment process. The accuracy and efficiency of the receiving process directly impacts inventory management, order fulfillment, and overall operational productivity. By automating and streamlining the receiving process, an effective WMS minimizes errors such as mislabeling or incorrect data entry, which can lead to significant issues like stock discrepancies, delayed orders, and increased labor costs. Additionally, real-time visibility into incoming inventory allows for better planning and quicker responses to demand fluctuations.

ShipHawk consistently provides an easy, accessible user experience for each one of these receiving types, always efficiently receiving and creating receipts for accurate documentation. To start automating your systems and conducting warehouse operations at your maximum productivity, schedule a time to speak to a shipping expert at ShipHawk today.