Typical Receiving Procedures

2. 14 Typical Receiving Procedures

3. You Should Be Able To: • Describe the essentials of effective receiving. • Generate an invoice and describe its use. • Sequence typical invoice receiving procedures. • Provide examples of other receiving methods. • Summarize good receiving practices. • Recall methods that reduce receiving costs.

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

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

6. Essentials for Good Receiving • Competent and trained personnel • Proper receiving equipment • Accurate scales for confirming weights (bare minimum) • Temperature probes for refrigerated or frozen foods • Rulers for checking trim of fat on steaks for example • Calculator for verifying cost • Knife for sampling • Conveyor belts, hand trucks and/or motorized lifts for moving purchases • Bar code reader

7. Essentials for Good Receiving (cont.) • Proper receiving facilities • Well lit • Large enough to work in • Reasonably secure • Convenient for drivers and receivers • Appropriate receiving hours • Copies of all specifications • Copies of all purchase orders

8. Invoice Receiving • Most popular technique • An invoice, or bill, accompanies the delivery

9. Typical Invoice Receiving Sequence (cont.) • Acceptance of delivery • Receiving person checks quantity • If no invoice, receiving person creates one • Another party (chef, department head) may check for quality • Creates time lag • Product may be destroyed by waiting • Buyer notified if necessary, who notifies supplier • Price, price extension, taxes checked • Sent to storage

10. TYPICAL INVOICE RECEIVING SEQUENCE (CONT.) • Rejection of delivery • All or part • Request for Credit memorandum (or credit slip) • Problems with rejecting • Returning merchandise • Acceptance of delivery

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

12. Other Receiving Methods • Standing order receiving • Blind receiving • Odd-hours receiving • Drop-shipment receiving • Mailed deliveries • COD deliveries

13. Good Receiving Practices • Beware of excess ice, watered-down products or anything else that could add weight to a product • Check the quality of items under the top layer • Inspect packages for leakage or water damage; swollen cans should be rejected • Ensure that expiration date has not come and gone

14. 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 portions for proportion weights

15. Good Receiving Practices (cont.) • Be careful of closed shipping containers with pre-printed expiration dates, weights, counts, etc. • Do not accept re-frozen merchandise • Be careful to not confuse brand names or packers’ brands • Test for acceptable shrinkage • Refer to provided specifications

16. Reducing Receiving Costs • Field inspectors • Computerized receiving • Night and early-morning deliveries • One-stop shopping