Improve Your Receiving and Putaway Processes with Inbound Deliveries and Automatic Goods Receipts

  • by Hasan Yakisan, Senior LES Consultant, Enowa Consulting
  • May 7, 2010
Improve the accuracy of available-to-pick in warehouse bin locations using inbound deliveries to post an automatic goods receipt at confirmation of putaway into a warehouse bin location.
Key Concept

You can manage goods receipt from the warehouse management level to improve picking accuracy and provide accurate warehouse bin available-to-pick. The receiving process in the warehouse starts with putaway transfer orders generated from an inbound delivery note. An inbound delivery note enables the warehouse to perform the putaway of the product into warehouse bin locations without posting the goods receipt until confirmation of the placement into the designated warehouse bin location takes place. This process increases accurate delivery by ensuring that once an outbound delivery is allocated and released to the warehouse, the products are at the right location and ready to be picked and shipped.

Most Warehouse Management System (WMS) implementations still use the classic goods receipt process as shown in Figure 1. First, goods receipts are posted against a purchase order when the product shows up in the warehouse. Then, putaway transfer orders are created for the goods receipt material document to initiate the putaway into a bin location. This is a process SAP supports and typically is what you need to do if you don’t use inbound deliveries.

With this process, the product is available for sale but cannot be picked until the putaway transfer order is created and the putaway into a warehouse bin location is confirmed. This can cause unnecessary exceptions during warehouse pick transfer order creation or wave release errors if you use pick waves in your warehouse operations. It can also lead to picking from your inbound staging area to satisfy a customer demand. Furthermore, it can affect warehouse accuracy and result in inefficiency in the warehouse processes.

Hasan Yakisan

Hasan Yakisan is a senior SAP LES consultant with more than 17 years of SAP implementation experience. During his career, he has focused on helping his customers optimize their logistics business processes by designing SAP solutions for highly complex logistics business requirements to maximize and enhance the functionality of the SAP R/3 product, and has been providing new solutions within the logistics area.

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