Logistics
10.5.2024

The inbound in logistics: importance and overview

inbound is a central component of logistics that represents the first step in the internal process chain of a company's flow of goods and materials. It includes the receipt, inspection, documentation and storage of goods delivered by the supplier or another external source. The inbound is a crucial operational lever for increasing supply chain efficiency and a key source of information for making strategic supply chain and partner decisions.

A well-organized inbound ensures that the delivered goods are available on time, in the right quantity and quality to ensure the subsequent processes in intralogistics. The quality and efficiency of this process have a direct impact on the entire supply chain, production planning and sales.

Basics of goods receipt

Importance of incoming goods for logistics and the supply chain

The inbound is a critical interface in intralogistics and a decisive factor for a company's entire supply chain. Efficient design has a significant influence on the quality and speed of further logistics processes - whether in retail, production or contract logistics. A well-structured incoming goods process enables precise warehousing, optimum material availability and the avoidance of production downtime due to stock shortages or defective parts.

Impact on the efficiency and quality of the entire supply chain: The quality of the processes at inbound determines how quickly and error-free incoming goods can be made available for production or resale. A high level of accuracy when receiving and checking goods prevents errors that could lead to costly corrections later in the supply chain.

Consequences of an inefficient incoming goods process: An inefficient inbound can lead to numerous problems, including production delays, increased storage costs due to excess stock or shortages and ultimately customer dissatisfaction. Errors in inbound can affect the entire logistics chain, from storage to production to delivery. A structured and smooth incoming goods process is therefore crucial in order to reduce costs and increase service quality.

Different types of goods receipts

In the practice of goods receipt, a distinction is made between different types of deliveries, each of which places specific demands on logistics.

Planned deliveries vs. unplanned deliveries: Scheduled deliveries are those where the arrival of the goods is known in advance and entered in the company's logistics system. These enable efficient preparation and fast processing at inbound. Unplanned deliveries, on the other hand, require flexible response options and can delay processes as they have not been planned in advance. Numerous companies therefore use software solutions for Time slot management to reliably plan their inbound and outgoing deliveries.

Consignment stock and Vendor Managed Inventory (VMI): With consignment stock, the supplier retains ownership of the stored goods until they are used by the company. This can reduce capital commitment and increase flexibility. With Vendor Managed Inventory (VMI), the supplier assumes responsibility for inventory management and optimization at the customer. These models require close cooperation and good IT integration between the business partners in order to make the goods receipt process efficient.

The goods receipt process in detail

The goods receipt process consists of several coordinated steps that serve to correctly record and check the delivered goods and transfer them to the company's inventory.

Preparatory activities

  • Delivery documentation: The order documents (order confirmation, delivery bill, invoice) should be checked before the delivery arrives. This allows discrepancies to be identified in advance and resolved promptly. Close cooperation between logistics and purchasing is crucial here.
  • Advance notification: Ideally, suppliers inform the company in advance about the upcoming delivery, which enables better planning at inbound . Digital Time slot management solutions can be used for this purpose, for example.

Receipt of goods

  • Checking the delivery documents: When the delivery arrives, the delivery documents are first checked to ensure that the delivery corresponds to the order.
  • Identification and allocation: The delivered goods are identified using the delivery note data and comparison with the order data. If necessary, additional markings or barcodes are added for internal allocation. Companies benefit if they bring their order and delivery data together, for example using EDI.

Quality control and load control

  • Check for damage: A visual inspection reveals obvious transport damage or packaging defects.
  • Quantity check: The counted quantity is compared with the order quantity in order to detect shortages or overdeliveries.
  • Qualitative testing: Depending on the company's requirements, specific quality tests may be necessary, e.g. dimensional checks, functional tests or chemical analyses.

Booking and forwarding

  • Storage: After successful inspection, the goods are booked in the merchandise management system and stored.
  • Returns processing: Goods that are faulty or damaged are documented accordingly and sent back or sorted out. If the entire process goods receipt process is mapped digitally, companies have the right evidence to process clarification cases quickly and easily.

Incoming goods inspection and documentation

A precise incoming goods inspection and comprehensive documentation are essential to ensure the quality of the delivered goods and to record any defects or deviations.

Carrying out the incoming goods inspection

  • Checklist: A standardized checklist helps to carry out all relevant checks systematically and completely.
  • Test methods: Depending on the type of goods, different test methods should be used, e.g. visual inspection, functional test, chemical analysis or dimensional check.
  • Inspection documentation: The results of the incoming goods inspection are recorded in an inspection report. This serves as the basis for further quality assessment and possible complaints.

Documentation of defects and errors

  • Defect report: In the event of deviations from the order quantity or quality defects, a detailed defect report is created.
  • Error message: Faulty deliveries are marked accordingly in the system and reported to Purchasing or the supplier for further clarification.

Quality management in the inbound

  • Inspection plans: Pre-defined inspection plans ensure consistent quality inspections.
  • Complaints management: Efficient complaints management enables defects and returns to be processed quickly.
  • Supplier evaluation: The data collected from the incoming goods inspection is incorporated into the supplier evaluation in order to improve the quality of suppliers in the long term.

Tasks and challenges in the inbound

The inbound is a complex process that requires a clear allocation of responsibilities and close cooperation between different departments.

Responsibilities and roles in the incoming goods team

  • Incoming goods employee: Responsible for receiving goods, quality control, documentation and storage.
  • Incoming Goods Manager: Responsible for organizing and monitoring the entire incoming goods process, including personnel planning and coordination.
  • Quality inspectors: Employees who carry out quality checks on incoming goods according to defined inspection criteria.
  • Returns Coordinator: Coordinates the processing of returns and deliveries subject to complaint in consultation with Purchasing and the suppliers.
  • Inventory manager: Responsible for the correct booking and storage location allocation of incoming goods.

Cooperation with other departments

  • SitesClose coordination with the warehouse team to ensure efficient storage and provision of goods .
  • Purchasing: Communication with the purchasing department in the event of faulty or incomplete deliveries in order to coordinate complaints and subsequent deliveries.
  • Distribution: Information on delivery delays or errors is passed on to the sales department in order to respond to customer inquiries accordingly.
  • Production: Timely information about delays or quality defects that may have an impact on the production process.

Challenges and solutions

The challenges at inbound are manifold and require targeted solutions in order to continuously improve process .

Dealing with damaged or defective deliveries

  • Standardized inspection criteria: The definition of clear inspection criteria for quality and quantity facilitates the identification of defective deliveries.
  • Complaints process: A standardized complaints process enables damaged or faulty goods to be processed quickly and efficiently.
  • Supplier evaluation: Continuous evaluation of suppliers helps to improve the quality of the goods supplied in the long term.

Optimization of the incoming goods process through digital technologies

  • Barcode and RFID technologies: Automated identification of incoming goods using barcode or RFID scanners increases the accuracy and speed of goods receipt.
  • Warehouse Management System (WMS): A WMS integrates the goods receipt process with Sites and optimizes storage bin allocation.
  • Supplier portals: Digital supplier portals enable improved communication with suppliers and automated advance notification of deliveries.

Training and qualification of employees in the inbound

  • Process training: Regular training on incoming goods processes ensures a uniform understanding and approach within the team.
  • Quality management training: Employees are trained in the use of quality management tools and inspection criteria.
  • Digital skills: Qualification in the use of digital technologies (e.g. WMS, scanner) is crucial for process optimization.

Best practices and examples

Best practices in inbound

Use of barcode and RFID technologies: Automating the identification and recording of goods is a key factor for efficiency and accuracy at inbound. The use of barcode and RFID technologies enables faster and more precise data capture, reduces manual input errors and increases transparency at process.

  • Barcode scanners: Widely used and cost-effective. Ideal for companies that already use barcodes on their products or packaging.
  • RFID technology: Enables contactless and simultaneous identification of multiple items. Particularly suitable for companies with a high throughput of goods or complex supply chains.

Implementation of Time slot management software: By implementing Time slot management software, deliveries can be planned more efficiently and waiting times reduced. Suppliers book time slot for their deliveries in advance, which enables better planning of resources at inbound .

  • Advantages: Reduced downtimes for suppliers, improved utilization of resources and optimized processes thanks to delivery times known in advance.
  • Example: Companies that use Time slot management software report up to 30% less waiting time and a significant increase in efficiency at inbound.

Lean principles at inbound: The application of lean principles aims to minimize waste and optimize the value creation process. In inbound this means

  • 5S method: Standardization of the workplace and processes to reduce search and waiting times.
  • Just-in-time: Reduction of excess stock through needs-based delivery.
  • Standardized processes: Clear process definitions and checklists for quality inspection and documentation.

Analysis of key performance indicators (KPIs) for incoming goods:

The regular analysis of KPIs in inbound is crucial in order to continuously improve processes.

  • Lead time: The time from arrival of the goods to storage. The aim is to keep this time as short as possible.
  • Error rate in incoming goods inspection: Percentage of faulty deliveries in relation to the total number of deliveries.
  • Waiting time of suppliers: Average waiting time of suppliers until unloading.
  • Costs per goods receipt transaction: Average costs for each completed goods receipt transaction.

Conclusion

inbound is an important component of efficient logistics that directly influences the performance and reliability of the entire supply chain. As we have seen, precisely organized incoming goods processes are crucial to ensure that goods are available on time, in the correct quantity and quality. This not only helps to avoid production downtime and delivery delays, but also supports strategic decision-making within corporate logistics.

From receiving to quality control to warehousing, every step of the receiving process requires careful planning, specialized knowledge and close collaboration between multiple departments. The implementation of technologies such as barcode and RFID systems, digital Time slot management solutions and the use of data analytics are just some of the best practices that companies can adopt to optimize their processes and adapt to the dynamic demands of the market.

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