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WMS (Warehouse Management System) is a system that enables the digital management of product receipt, placement, inventory, transfer, picking, counting, and shipping operations within a warehouse. The goods receiving process is one of the most critical operations of WMS.
With WMS, goods receiving allows for the system to control all steps from the physical arrival of the product at the warehouse to its availability in stock. Purchase order verification, quantity control, product identification, barcoding, lot or serial number registration, quality status, and location assignment can all be managed within the same process.
How to initiate the Goods Receipt Process with WMS?
1. Incoming Shipment Matches Purchase Order
The goods receiving process begins with matching the products arriving at the warehouse with the corresponding purchase order. Using order information from the ERP or purchasing system, the WMS can indicate which products are expected, in what quantities, and from which supplier.
The operator compares the incoming shipment with the order in the system. This allows for the detection of unexpected items, excess quantities, missing deliveries, or incorrect products at an earlier stage.
2. Product and Quantity Control is Performed
The physical quantity of incoming products is compared to the quantity expected in the system. Checks can be performed based on carton, pallet, unit, or weight. WMS can record not only the accepted quantity but also any missing, excess, or damaged quantities separately.
This information can be used in purchasing and supplier performance evaluations. It also ensures that only the quantity actually received is entered into the inventory system.
3. Product verification is done using a barcode or QR code.
Identifying products with barcodes or QR codes increases the speed and accuracy of the goods receiving process. By scanning the code on the product, the operator can automatically display the product information on the WMS.
If the product does not have an existing barcode, a custom label can be created for the business. This allows products entering the warehouse to be tracked using the same identification method during subsequent placement, transfer, picking, and counting processes.
4. Lot, Batch and Serial Numbers are Recorded
For some products, tracking by product code alone is insufficient. For pharmaceuticals, food, chemicals, medical products, and products tracked by serial number, lot, batch, or series information must be recorded during the goods receipt process.
WMS can manage different lots of the same product as separate inventory records. This allows for retrospective tracking of which lot arrived on which date, where it was placed, and which subsequent shipment or production process it was used in.
5. Expiration Date and Other Critical Information are Recorded.
For products with an expiration date, this information can be entered into the system during goods receipt. Production date, expiration date, shelf life, supplier lot, or other critical product information can be associated with stock records.
This data helps in applying FIFO or FEFO principles in later processes. Especially for products with critical shelf lives, accurate data entry reduces the risk of stock loss and expiration date issues.
How to Manage Quality, Inventory, and Location After Goods Receipt?
6. Quality Control or Quarantine Status is Defined
Not every product arriving at the warehouse needs to be immediately added to usable stock. Some products may require quality control or laboratory evaluation. On the WMS system, products can be managed with different statuses after acceptance, such as quarantine, awaiting quality control, approved, or blocked.
This structure helps prevent products from being accidentally sent to production or shipment before the quality result is completed. When QMS or LIMS integration is present, the quality status can be obtained from the relevant systems.
7. A suitable warehouse location is determined.
After goods receipt is complete, products need to be placed in the appropriate shelving or warehouse space. WMS can provide placement suggestions based on criteria such as product type, capacity, temperature requirements, inventory turnover rate, and current location occupancy.
The operator is directed to the location suggested by the system and can verify the placement by scanning the product and location barcode.
8. Stock Entry is Created on the System
Once the goods receipt process is complete, the quantity of accepted products is added to the inventory system. The product code, quantity, lot, location, quality status, and receipt date can all be associated with the same inventory record.
This ensures that the product physically entering the warehouse is synchronized with the stock record on the WMS. If there is ERP integration, stock movements can also be transferred to corporate systems.
9. Goods Receipt Nonconformities Are Recorded
Issues such as damaged products, incorrect products, missing quantities, packaging problems, or inappropriate temperatures may be identified during delivery. These records can be associated with the relevant delivery in the WMS system.
If necessary, the product can be blocked or sent for quality assessment. When QMS integration is used, the nonconformity record can be directly transferred to the quality management system.
10. Goods Receiving Performance is Reported.
Thanks to the data generated on WMS, reports can be created on goods receipt time, number of waiting vehicles, supplier-based error rate, incomplete deliveries, goods receipt quantities, and operation times.
These indicators help identify bottlenecks in the receiving operation. Warehouse managers can base workforce planning and supplier performance evaluations on more concrete data.
What is WMS Goods Receipt?
WMS is the process of receiving products from suppliers or other warehouses into the system, physically inspecting them, identifying them, and placing them in the warehouse with the appropriate stock status. This process is the starting point of the product's digital lifecycle within the warehouse.
How does barcode-based goods receiving work?
The operator scans the barcode of the incoming product using a handheld terminal or barcode reader. The WMS matches the barcode with the product card and can display the corresponding purchase order. After the quantity, lot, and other information are verified, a goods receipt record is created.
How to Manage Missing or Excess Deliveries with WMS?
The system can compare the ordered quantity with the physically delivered quantity. Any discrepancies (shortages or surpluses) can be recorded. Depending on the company's rules, the user may receive a warning or be required for additional confirmation.
Why is lot tracking important in goods receiving?
Lot tracking allows us to monitor which production or shipping processes products received in the warehouse are subsequently used in. It helps in quickly identifying products belonging to the relevant lot in the event of a quality problem or recall.
How are products awaiting quality control managed?
Products awaiting quality control may be held in a separate stock status or quarantine location. WMS can ensure that these products are separated from normal stock and cannot be used or shipped until quality approval is obtained.
Can data be collected for FIFO and FEFO in Goods Receipt using WMS?
Yes. When information such as the receipt date, production date, and expiration date is recorded during goods receiving, WMS can apply FIFO or FEFO rules in subsequent stock outflows. Therefore, data accuracy during the goods receiving phase directly affects subsequent warehouse processes.
Which systems can WMS integrate with?
WMS can integrate with systems such as ERP, QMS, LIMS, and EBR. Purchase orders can be received via ERP, nonconformities can be managed via QMS, quality results can be transferred via LIMS, and raw materials to be sent to production can be prepared for EBR.
What are the benefits of using WMS for the goods receiving process for a business?
With WMS, receiving goods reduces incorrect goods receipt, strengthens lot and serial number traceability, speeds up inventory entries, makes quality status visible, and ensures products are placed in the correct locations in a more controlled manner.
Conclusion
With WMS, the goods receiving process is managed digitally, from the arrival of the product at the warehouse to order verification, barcode checking, lot registration, quality status, and location assignment. This makes warehouse entries more standardized and traceable.
A well-structured goods receiving process directly impacts the accuracy of subsequent inventory, picking, production, and shipping operations. Especially in businesses with high product volumes, batch tracking, or quality control requirements, WMS-based goods receiving management is a fundamental component of warehouse operations.
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