The goods receipt process is a crucial aspect of any business that deals with physical goods. It involves the verification of the quality and quantity of incoming goods. As well as the accurate recording of this information in the company’s inventory system. A smooth and efficient goods receipt process is therefore essential to ensure timely availability of stock, accurate financial records, and customer satisfaction.
However, many businesses struggle with optimising their goods receipt process, leading to delays, errors, and inefficiencies. To address this issue, we’ve compiled six key questions that businesses should ask themselves to identify areas for improvement in their goods receipt process. By answering these questions honestly, businesses can therefore gain valuable insights and make targeted changes to streamline their operations.
1. How long, on average, does it take to receipt goods into your system?
The first question to ask when evaluating the goods receipt process is how long it takes, on average, to receipt goods into the system. If the process takes too long, it can cause delays in getting the goods to the customers. This can affect customer satisfaction and ultimately, the business’s bottom line. By identifying the bottlenecks in the goods receipt process and finding ways to speed it up, businesses can ensure that they receive and process goods quickly and accurately. Thus, resulting in a more efficient and effective operation.
2. Do you often see lost sales due to a slow and inefficient goods receipting process?
A slow and inefficient process can lead to stockouts, missed delivery dates, and dissatisfied customers. If customers can’t find the products they need, they are likely to go to a competitor. This can therefore result in lost sales and revenue for the business. By identifying the impact of the goods receipt process on sales and customer satisfaction, businesses can prioritise improvements to the process. As well as ensuring that they have the products customers want, when they want them.
3. Do you have to manually enter paper documents into your ERP system upon receipt of goods?
Manual data entry is time-consuming and error-prone. It can lead to discrepancies between the physical inventory and the inventory recorded in the ERP system. By identifying whether manual data entry is required and the extent of it, businesses can explore ways to automate the data entry process. As a result, this reduces the likelihood of errors and frees up staff time for other tasks. This can lead to more accurate and up-to-date inventory records. In turn, this helps businesses make informed decisions and improve their overall efficiency.
4. Do you experience slow supplier invoice processing times due to missing, incorrect and/or inaccurate goods receipt details?
Discrepancies in the goods receipt process can cause delays in supplier invoice processing. Consequently, delayed payments and potentially strained supplier relationships can arise. By identifying whether the goods receipt details are accurate and complete, businesses can improve their communication with suppliers. In addition to reducing the likelihood of disputes, and streamlining the invoice processing process. This can lead to better relationships with suppliers, faster payments, and potentially better pricing and terms in the future.
5. Does your organisation perform regular stock takes to ensure inventory figures are up to date? And if so, has receipting caused issues with stock levels?
Accurate inventory records are essential to efficient operations and customer satisfaction. If the goods receipt process is not accurate, it can result in discrepancies between the physical inventory and the inventory recorded in the system, leading to stockouts or overstocking. By identifying whether regular stock takes are performed and whether issues with stock levels have been caused by the goods receipt process, businesses can therefore improve their inventory accuracy, reduce the likelihood of stockouts, and free up capital that may be tied up in overstocked items. This can help businesses make more informed decisions and improve their profitability.
6. Do your staff spend a considerable amount of time dealing with suppliers due to delivery issues?
Inefficient delivery processes can result in delays, miscommunications, and dissatisfied customers. If staff members are spending a lot of time dealing with delivery issues, it can reduce their productivity and focus on other important tasks. By identifying whether staff members spend a considerable amount of time dealing with delivery issues and why those issues are occurring, businesses can improve their communication and collaboration with suppliers, reduce the likelihood of delivery issues, and improve their overall efficiency. This can lead to more satisfied customers, a more productive workforce, and potentially better supplier relationships.
You can download these questions for free to share with your business here or contact us to discuss how you can implement an accounts payable solution.
About B2BE
B2BE delivers electronic supply chain solutions globally, helping organisations to better manage their supply chain processes, providing greater levels of visibility, auditability and control. We’re driven by a passion for what we do, inspired by innovation, and underpinned by a wealth of knowledge. With over 20+ years of experience, the B2BE teams operate worldwide.
For more information, visit www.b2be.com.