Inbound Process Overview

What is inbound?

The inbound process starts when items arrive in the warehouse location, which are either received from external sources or from another company location. The user who is responsible for receiving the items then releases the source document, i.e., PO. (purchase order) or inbound transfer order, which in turn helps the warehouse workers to carry out further operations, i.e., put away of the received items.

Inbound Cycle

 

Inbound Process

1. Recording and Receipts:  Recording and receipts drive the inbound process. Receipts help in ensuring that each step in the process is completed and communicated with accuracy. Basic receipts include item, quantity, unit of measurement, and other required information. Elements that should be tracked throughout the inbound process includes lot numbers, manufacturing dates, expiration dates, serial numbers, P.O. tracking, various inventory receipt statuses, default receipt status rules, emergency re-direction, routing of times to special staging on “short” inventories, immediate availability of items for backorders and cross-docks, and more. This service speeds up the inbound process by reducing the amount of information entered manually. The pre-receipt process allows for automation, real time receiving and put away functions, reduction of receiving errors, and minimizes cost.

 

2. Load Arrival: Your receiving process should start immediately after pre-receipts have been loaded into the WMS system, product is more than simply received. Within minutes, the system can make receipt/load appointments in advance, or reserve docks, doors, and staging areas. This preliminary inbound planning helps supply chain management companies become more efficient when completing each logistics service. All receipt information should be already entered with minimal human error. Due to this, when a receipt/load arrives, the warehouse coordinator knows exactly which dock door to direct the truck, and then can easily assign an unload staging area.

 

3. Receiving Real-Time Information: The “receipt” is handed to coordinators, already “bar-coded” with specific instructions for an associate who can begin the receiving activities and real-time reporting. Checking processes as you go ensures that the inbound process continues to run smoothly. Once the inbound receipt and load arrival process is completed warehouse associates begin detailed receiving. Types of receiving are different for each supply chain and trucking company. 

A. One-Step Receiving: When customers benefit from eliminating the staging and have their products sent directly to storage 

B. Two-Step Receiving: When the receipt/load needs to be staged instead of putting directly into storage.

 

4. License Plate Tracking (LPN): Having control over your moving product is just as important as having control during storage and warehousing. Hence, license plate numbers are used to track the receiving.

 

5. Put-Away and Receipt Close: In eRetail, WMS system specifically allows customer configured settings that help determine whether your product will be put-away using an operator-dictated or system-directed method. 

 

Types of Inbound

Inbound process at warehouse pertains to receiving, checking, recording, and put away of products into the system upon physical receipt. 

Inbound can be of 3 types:

  • Receipt from Vendor (ASN, PO, ARS, Backorder, Direct)
  • Receipt from another Warehouse or Store (STO)
  • Receipt of Customer Return Order (Return)

 

  1. Direct Inbound/ Without PO: Direct Inbound is the scenario where inbound is done without PO, which means directly inward of the products received. Here the Vendor code is required for the inbound to be done. 
  2. With PO: Inbound with PO is done when a PO is raised for the same. Here the PO no. is required for inbound to be done. 
  3. With ASN: Inbound with ASN that is Advance Shipping Note is the case where the goods arrive earlier than expected and the inbound for the same needs to be done. In this case here the ASN number will be required instead of the PO number to start the Inbound process. 
  4. STO inbound: STO inbound is done in case of stock transfer order received at the warehouse. User with multiple locations or warehouses require to transfer the stock from one warehouse to another for orders & the inbound for such cases is done here. 
  5. Return inbound: Return inbound is done in case of Customer returns or delivery failure, as in both these cases the order is received back at the warehouse. When the order is received in the warehouse as customer return then again, the inbound for that return is done to re allocate the bins and zone to the returned orders.