The document discusses goods inward procedures, inspection, and documentation. It covers the receiving process, including verifying quantities and quality, issuing goods receipt notes, and inspecting goods. Inspections check that items meet specifications through various quality checks and testing. Documentation associated with receiving includes goods receipt notes, delivery notes, purchase orders, and bills of lading. The receiving function aims for economy, efficiency, effectiveness and speed while avoiding issues like double handling or penalties.

1. GOODS INWARD PROCEDURE,
INSPECTION AND DOCUMENTATION
Navindu Munidasa
MSc Logistics and Supply Chain (UK) (Reading); BSc Operations and Logistics
Management (UK); Dip in Computer Hardware and Networking ; Certificate in Motor
Mechanism (CGTTI); Certificate in Workshop Practices (CGTTI)

2. LEARNING OBJECTIVES
the goods receiving processVisualizing
with the documentation used when receiving goodsFamiliarizing
the quality checkpoints and responsibilities of goods inspectionUnderstanding

3. GOODS INWARD
PROCEDURE

4. THE MAIN FUNCTION OF A STORE
• What is receipt?
A receipt is a written acknowledgment that something of value has been transferred from one party to
another
• What is storage?
Storage is to place or leave in a location (such as a warehouse) for preservation, later use or disposal
• What is Issuing?
Issuing is supplying or distributing (something) for use or sale.
Receiving Storing Issuing

5. KEY OBJECTIVES OF A STORES OPERATION
• Economy
• Efficiency
• Effectiveness
• Speed
DUTIES OF THE RECEIVING FUNCTION
• Quality Control
• Inspection
• Quantity Checking
• Matching with the orders placed

6. STORE STRUCTURE
Centralized - All receipts in
one Receiving Section
01
Semi Centralized - Paper
work in one place &
Physical receipt in another
place
02
Decentralized - More than
one receiving place
03

7. RECEIPT OF SUPPLIES
Stores
From
outside
suppliers
against
purchase
orders
From other
storehouse
in the
organizatio
n
From
production
as scrap
and
salvage
From
production
or other
department
s

8. VERIFICATION UPON RECEIVING
1.The articles supplied are strictly according to the description appearing on the P.O. and
to approved samples.
1.The quantities, weights and measurements conform to those indicated on the P.O.
The articles are in sound condition, and where the method of packing has been
specified, the packing provided conforms to specification.
The articles and quantities there of delivered by the supplier or his authorized agent fully
tally with those indicated on the consignment note/deliver note.
Check with Technical
officer (Ex: Fabric Tech) if
required

9. TYPE OF MATERIALS RECEIVED
• Perishable
• Fragile
• Hazardous / dangerous
• Solid / liquid
• Valuable

10. THINGS TO BE AVOIDED WHEN
RECEIVING GOODS
Double handling
Detention charges
Demurrage
Penalties
Any contractual arrangements and provisions

11. FUNCTIONS AND RESPONSIBILITIES OF A STORE
1. Receive goods - Directly delivered or collected from post office, port, airport,
warehouses. It can have a clearing of forwarding units.
2. To check quantities items against Purchase Order and consignment note.
3. Impact and quality check.
4. Enter in Register of goods received GRN preparation.
5. Acknowledge in Transportation Delivery Note.
6. Notify concerned parties - Purchasing Production / User, Finance
7. Notify special indents
8. Action on defective items, shortages and excesses.
9. Surveys & claims
10. Rejected items, action to be taken
11. Deliver to section stores / User Departments
12. Handling arrangements

12. DOCUMENTATION
ASSOCIATED WITH GOODS
RECEIVING

13. ACTIVITY
Distinguish between a
Goods received note
and a Delivery note
1
Distinguish between a
Bill of Lading and an
Airway bill
2
Distinguish between a
Purchase requisition
and a Purchase order
3
Distinguish between a
Transfer note and a
Issue note
4

14. DOCUMENTS USED IN THE RECEIVING
PROCESS
Advice Note
Consignment
Note
Delivery Note
Supplier’s
Packing Note
Goods
Received Note
Purchase order
Bill of Lading
Commercial
Invoice
Packing List Freight Sheet Airway Bill Postal Advice

15. GOODS RECEIPT
REGISTER
• Goods Receipt Note
Register displays the goods
receiving data entered in the
system. The details are
displayed for the selected unit
and given date range. User
can select view format
selected. The details that are
displayed are - GRN Date,
GRN Number, Status, Supplier
Name, Currency, Warehouse
Name, Doc Value, Remarks
etc.

16. GOODS RECEIPT
NOTE (GRN)
Goods Receipt Note which
records all the details
pertaining to receipt of
material by the customer or
his representative
alternatively GRN is also
issued when the item is
supplied from one
department to other, GRN
has the facility to recorded
the reason for issue of
material

17. INSPECTING OF
GOODS

18. METHODS OF CHECKING QUALITY
• Visual - Stationeries, grocery
• Touch - Rough or smooth
• Smell - Kerosene, coconut oil
• Comparison - With sample
• Standards - SLS marks
• Testing
• Laboratory Testing
Could be done in-house if required
equipment is available or could get done
through organizations such as Bureau
Veritas

19. GOODS
INSPECTION
By testing against
specification.
Measurements, dimension
size, characteristics quantity
and quality
Tolerances allowed -
deviations
Drawings
Performance Durability Safety
Appearance for Customer
acceptance
Functional aspects Acceptable quality level Statistical quality control
Quality Rating - of supplier
regarding and accuracy
quality
Certified quality control,
present performance and
past performances.

20. RESPONSIBILITIES OF INSPECTION
1. Establish inspection objectives
2. Test specifications and procedures for different materials.
3. Establish quality specifications and sampling inspection plans for all purchased items including spare parts and
components.
4. To define responsibilities, authority and accountability of each position. The establishing of policies and
procedures to ensure quality incoming materials and ensure strict adherence.
5. To co-operate with Purchasing Department and Receipt Stores to establish good supplier purchaser relationships
that will ensure quality in purchased materials and meet specifications.
6. To render assistance in maintaining a supplier rating sheet in respect to quality.
7. To obtain and analyze complaints from production regarding quality of purchased materials and investigates
causes of complaints.
8. To review and approve where appropriate all deviations from specifications.
9. To procure and maintain test inspection equipment to meet inspection requirements.
10. The preparation of test and inspection reports required by management.

21. ACCEPTING
ZERO DEFECTS
Properly executed zero defects programme motivates all personnel within the importance of human production
errors.
Prevention of deficiency by employees both in his work performance and by identification of other defects
potential or actual.
Awareness is instilled in each employer that of being personally responsible for the work performed. Problems
are identified for the employee and instructions for correction are provided.
The deep-rooted acceptance of lack of performance is removed.
An awareness is developed in each employee that the letter is contributing directly to performance of the
equipment and company goals.

22. QUESTIONS & ANSWERS SESSION

23. THANK YOU