Efficient inbound processing is strategically important for any warehouse, as it sets the stage for all subsequent inventory management and fulfillment activities. A streamlined receiving process ensures that goods are available for sale or production quickly and accurately. This section details the key processes involved in receiving and preparing goods for storage, from the initial goods receipt to deconsolidation and value-added services.

Goods Receiving Process

The inbound process typically begins in the ERP system with the creation of a purchase order. When the vendor is ready to ship, an inbound delivery notification is created in ERP, containing information about the materials, quantities, and expected arrival. This document is then automatically replicated in the EWM system.

Core activities in the inbound process include:

• Goods Receipt: The physical arrival and registration of goods at the warehouse.
• Inspection: Quality checks or verification against the delivery documents.
• Routing: Directing the goods to the appropriate next step, whether it be putaway, cross-docking, or a value-added service work center.

Any changes made to the inbound delivery in EWM, such as quantity adjustments, are communicated back to the ERP system to maintain data consistency.

Maintaining Serial Numbers

Serial numbers are used to uniquely identify and track individual items throughout their lifecycle in the warehouse. There are four types of serial number requirement available in the system:

• Serial Number for Document Items: Used to track specific items for returns or customer service, ensuring the correct product is identified. This serial number is not typically used for other internal warehouse tasks.
• Serial Numbers on Warehouse Number Level: Used to track which specific serial numbers are physically present in the warehouse at any given time.
• Serial Number of Warehouse Movement: The most granular level of tracking, requiring a serial number to be recorded for every warehouse task. This provides precise storage bin information for each serialized item.
• No Serial Number Requirement: This requirement type is used when products are serialized in some warehouses but not others.

In cases where serial numbers must be recorded before they are physically known (e.g., at goods receipt posting), EWM allows for the use of a provisional serial number, which always starts with a $ sign. This placeholder must be replaced with the actual serial number during a subsequent step, such as the putaway task confirmation.

Value-Added Services (VAS)

Value-Added Services (VAS) are product-processing activities performed in the warehouse, such as special labeling, kitting, or assembling. These activities are managed using a VAS order, which instructs warehouse employees on the specific work to be performed. A VAS order consists of:

• An Order Header with general information.
• The specific VAS activities to be performed.
• The product Items to be processed.
• Any Auxiliary products required, such as packing materials or labels.

Deconsolidation

Deconsolidation is the process of breaking down a large handling unit (e.g., a pallet) that contains multiple different products. This is necessary when the products need to be put away into different locations within the warehouse. Deconsolidation is typically required in the following scenarios:

• The products within the handling unit are destined for different activity areas.
• The products belong to different consolidation groups, which dictate how they are stored.
• The number of warehouse tasks required for the products exceeds the maximum allowed for a single handling unit.

Expected Goods Receipts

An Expected Goods Receipt is a document used to create an inbound delivery directly in EWM, often without a preceding delivery document from the ERP system. This is particularly advantageous when the ERP system is temporarily unavailable, allowing warehouse operations to continue uninterrupted. This process can be initiated in two ways:

• Push Scenario: The process is triggered from the ERP system.
• Pull Scenario: The process is initiated directly within the EWM system.

Now that the processes for receiving and preparing stock are clear, the focus can shift to the equally critical outbound processes that move stock out of the warehouse to fulfill customer orders.