2. Typical Receiving Procedures14
Typical Receiving Procedures

3. You Should Be Able To: Explain the objectives of receiving.
Describe the essentials of effective receiving.
Generate an invoice and describe its use.
Sequence typical invoice receiving procedures.

4. You Should Be Able To: (cont.)
Provide examples of other receiving methods.
Summarize good receiving practices.
Recall methods that reduce receiving costs.

5. What Is Receiving?
Receiving is the act of inspecting and either accepting or rejecting deliveries.

6. Receiving Objectives
Obtaining the correct amount and quality at the correct time with the correct supplier services for the correct EP cost.
Check to see that the delivered order meets the criteria.
Control the received products and services.

7. Essentials for Receiving
Competent personnel
Full or part time
Intelligent or knowledgeable
Honest
Interested
Appropriate training
Recognize quality levels
Good record-keeping
Minimize errors

8. Essentials for Receiving (cont.)
Proper receiving equipment
Accurate scales for weight
Temperature probes for chilled/frozen items
Rule Measures for checking trim of fat
Calculator for verifying cost
Knife for sampling
Conveyor belts, hand trucks, or lifts for moving product
Bar code reader

9. Essentials for Receiving (cont.)
Proper receiving facilities
Well lit
Large enough to work in
Reasonably secure
Convenient for drivers and receivers
Appropriate receiving hours
Staggered yet predictable
Minimize number of deliveries

10. Essentials for Receiving (cont.)
Copies of all specifications
Reference products
Handle substitutions
Copies of all purchase orders
Confirm the order

11. Invoice Receiving Most popular technique used
An invoice or bill accompanies the delivery
Invoice resembles the purchase order
Order is accepted or rejected

12. Invoice Receiving (cont.)
Sequence of Invoice Receiving
Delivery Arrives
Driver announces arrival
Receiver opens receiving area
Receiver checks quantities
Receiver checks weight/volume
Receiver checks quality
Receiver checks invoice prices and taxes
Receiver accepts or rejects

13. INVOICE RECEIVING (CONT.)
Rejection of delivery
May be all or part of the delivery
Request for credit memorandum (or credit slip)
May be a call to the supplier
May be written by the driver
Problems in which to reject
Did not meet quantity, quality, or price
Substitutions or back orders
Invoice errors

14. INVOICE RECEIVING (CONT.)
Returning merchandise
Something from previous delivery to go back
Supplier may buy back an overbuy
Supplier will inform driver with pick up memo
Receiver will keep copy of pick up memo
Supplier will inspect the return and issue credit memo

15. Invoice Receiving (cont.)
Acceptance of delivery
Receiver will initial or sign paperwork stating delivery was correct and acceptable
Receiver will move delivery into storage
Receiver will apply an invoice stamp to invoice to confirm acceptance and correctness
Receiver will record details on receiving sheet and complete a bill of lading
Receiver will send invoice, credit slips, bill of lading, etc. to accounting department

16. Additional Receiving Duties
Date the delivered items
Price all delivered items
Create bar codes
Apply “meat tags”
Housekeeping
Update AP prices
Backhaul recyclables

17. Other Receiving Methods
Standing order receiving
Delivery driver leaves product to get you to par
Delivery ticket versus invoice
Blind receiving
Scaled down invoice is used
Forces receiver to do more work
Odd-hours receiving
Someone other than receiver will accept delivery

18. Other Receiving Methods (cont.)
Drop-shipment receiving
Carrier service is used to delivery product
Driver unable to assist in disputes
Mailed deliveries
Packing slip accompanies the delivery
Cash-on-Delivery (COD) deliveries
Receiver will pay the driver upon delivery

19. Good Receiving Practices
Tare Weight
Added weight by ice, water or package
Check the quality under the top layer
Inspect for leakage or water damage; swollen cans should be rejected
Ensure that expiration date has not come and gone

20. Good Receiving Practices (cont.)
Weigh each type of item separately
Be wary of drivers eager to help unload
Do not sign for incomplete orders
Spot-check for portion weights
Check contents and weights in boxes to ensure nothing was repacked into other labeled boxes

21. Good Receiving Practices (cont.)
Do not accept re-frozen merchandise or products that are slacked out
Do not confuse brand names or packers’ brands
Test for acceptable shrinkage
Refer to provided specifications

22. Good Receiving Practices (cont.)
The four ways to get “stung” by a supplier:
Unintentional errors
Dishonest supplier with an honest driver
Honest supplier with a dishonest driver
Dishonest suppliers with a dishonest driver

23. Reducing Receiving Costs
Field inspectors
Night and early-morning deliveries
Night Drop / Key Drop
One-stop shopping
Technology