Key takeaways
- Receiving should update stock only after the actual quantity and destination are confirmed.
- Picking removes or confirms committed stock against specific order lines.
- Packing should verify the completed pick and should not bypass shortages or incomplete lines.
1. Delivery setup and expected quantities
The process begins before the vehicle arrives. Create a delivery or purchase reference containing the expected products and quantities. This gives the receiver something to compare against and prevents an unexplained stock increase.
Useful fields include supplier, reference, expected date, product, ordered quantity and intended warehouse or receiving area.
2. Receive what actually arrived
The receiver should record the actual quantity, condition and destination. The system should allow part receipts and exceptions rather than forcing every delivery into a fully received status.
- Correct quantity received
- Short delivery
- Over delivery
- Damaged stock
- Incorrect product
- Quantity placed in quarantine
After the receipt is approved, stock should update immediately and the delivery status should reflect the line results.
3. Put stock into a controlled location
Stock is only useful when users know where it is. Put-away assigns received quantity to a warehouse, zone, shelf, bin or other controlled location. A temporary receiving location can be used, but stock should not remain there indefinitely without visibility.
4. Create the customer or internal order
An order records what needs to leave the warehouse. Each line should include a product and required quantity. The system may reserve stock at this stage so other orders do not commit the same available quantity.
Any shortage should be visible before the order reaches the picking queue.
5. Pick against the order lines
The pick list tells the operator what product to collect, how much is required and where it is held. The picker confirms the actual quantity and records an exception if the full quantity is not available.
- Prevent the same line from being picked twice.
- Prevent quantities above the remaining requirement.
- Keep partially picked orders open.
- Record shortage, damage or location problems.
6. Pack only completed or approved picks
Packing is a verification stage, not a second opportunity to invent the quantity. The packer should see the order and picked lines, confirm what is in the package and stop the process if a required pick is incomplete.
A clear status such as awaiting pick, part picked, picked, awaiting pack and packed helps everyone understand the next action.
7. Dispatch and close the order
Once packing is complete, the order can be marked dispatched or closed, with any carrier, tracking or collection reference recorded if required. The transaction history should show when stock left and which order caused the movement.
Handle exceptions instead of hiding them
| Exception | Correct response |
|---|---|
| Short receipt | Record the actual quantity and leave the remaining amount open or close with an exception. |
| Damaged receipt | Place the quantity in quarantine or a non-pickable status. |
| Pick shortage | Record the shortage and keep the order incomplete or authorise a partial fulfilment. |
| Wrong item picked | Reverse or correct the pick before packing. |
| Order packed too early | Block packing until the required pick lines are complete. |
Useful operational measures
- Deliveries awaiting receipt
- Lines received with an exception
- Orders awaiting picking
- Part-picked orders
- Orders awaiting packing
- Pick shortages
- Average time between order entry, pick and pack
Start with measures that help users find work or exceptions. Avoid dashboards that cannot open the underlying records.
Frequently asked questions
What is the difference between picking and packing?
Picking collects the required products from their storage locations against order lines. Packing verifies the completed pick and prepares the order for dispatch.
When should stock increase during receiving?
After the actual quantity and destination location have been confirmed and the receipt transaction has been approved.
Should damaged stock be added to inventory?
It can be recorded, but it should be placed in a quarantine or non-pickable location or status so it is not treated as normal available stock.
Can an order be packed before it is fully picked?
Only through a deliberate partial-order process. A normal packing workflow should block or clearly flag incomplete picks.
Keep the stages separate and the data connected
Receiving confirms what entered the warehouse, picking confirms what was collected for an order and packing verifies what is ready to leave. Clear statuses, line-level quantities and exception handling allow these stages to work together without losing control of the stock record.
