Understanding One-Stage and Two-Stage Receiving in Warehousing and its Impact on Automation

Warehouse operations depend on the efficiency of their receiving processes. The choice between one-stage and two-stage receiving can greatly influence both efficiency and the automation strategies implemented, affecting the entire supply chain's responsiveness and accuracy.

Choosing between one-stage and two-stage receiving depends largely on the nature of the inventory and the specific operational needs of a warehouse. While one-stage receiving is efficient for simpler, uniform product flows, two-stage receiving provides the necessary rigor for handling diverse and complex inventories.?

In terms of automation, systems like Cleverence play a pivotal role by bridging the gap between physical warehouse operations and digital backend processes. These advanced systems automate tasks such as scanning received goods, generating quality control tasks, and guiding employees through the putaway process. This ensures accuracy by integrating barcode systems for both items and locations, thus preventing errors and streamlining operations.

Automation does not necessarily require reflecting each physical movement within the backend ERP system. Instead, the focus is on ensuring the digital documentation like shipping notes and purchase orders are accurately parsed and used to facilitate the physical handling of goods.?

By automating these processes, companies can reduce human error and optimize warehouse operations through precise, guided actions that are informed by real-time data.

One-Stage Receiving

One-stage receiving, or direct putaway, involves receiving goods and moving them directly to their final storage location without interim holding. This process is typically favored when dealing with uniformly packed products, limited range of SKUs or very small receivings.?

In this scenario, warehouse staff consult digital systems to verify stock keeping units (SKUs) and find appropriate storage locations immediately upon goods arrival, optimizing both time and space within the facility.

One-stage receiving is also particularly advantageous for handling smaller volumes of goods that can fit onto a single cart. This scenario is common in settings like back stores of retail outlets or in trades involving high-value, low-volume items like electronics. In such cases, employees prioritize finding and filling specific storage locations directly from the reception area, maximizing efficiency and reducing the need for extensive sorting or staging.

Then there is a question of what to scan first — product barcode or location barcode.? To scan the location barcode first, an employee should already be in the warehouse looking at that location, and the product should be already carried to that location.? That means that location-first scan should presume that it doesn’t really matter what product we carried to the warehouse for binning into the location, because if we care about the product then we have to scan the product first.

For small receivings that can fit on a single cart, the configuration should focus on a location-first approach. In this setup, Cleverence displays the entire list of items along with their preferred storage locations. The system prompts the user to scan the storage location barcode first, filtering the display to show only the items meant for that location. Subsequently, it requests the scanning of item barcodes, ensuring precise placement in designated spots.

For larger receivings where the volume is still manageable in a one-stage process, the configuration shifts to a product-first approach. Here, the process begins by scanning items to be put away. After items are selected, Cleverence guides the user to appropriate locations, displaying where items should be placed and then confirming by requiring a scan of the location. This method ensures efficient handling of larger batches while still maintaining the streamlined efficiency of one-stage receiving.

This method simplifies the process further by allowing workers to directly transport and store the goods without intermediate steps, making it ideal for swift inventory turnover and limited storage space scenarios.

This streamlined approach ensures that operations remain agile and responsive, particularly beneficial in retail environments where space and time are at a premium.

Two-Stage Receiving

Conversely, two-stage receiving involves more complex processes where goods are first unloaded to a temporary staging area. Here, they undergo quality control checks, sorting by SKU or batch, and possibly repackaging. So, in practice it can involve 2,3,4 steps but be still called 2-stage.

This method is suitable for shipments containing a diverse array of SKUs, mixed batches, or items requiring serial number verification. The initial stage focuses on verifying and sorting goods, while the subsequent stage involves strategically placing these sorted items into their designated storage locations.?

Such a method is beneficial for handling larger or more complex shipments, facilitating meticulous inventory management and minimizing errors during putaway.

In scenarios involving large, diverse receivings requiring complex handling, Cleverence must be configured to handle multiple stages, typically including separate stages for receiving, quality control, and put-away.?

This configuration allows for:

• Receiving: Items are initially received and logged.
• Quality Control (QC): Items undergo QC processes where tasks are automatically generated to inspect and sort goods based on quality and specifications.
• Put-Away: Once items pass QC, they are moved to their final storage locations. Depending on the specifics of the inventory (whether entire pallets or mixed boxes), the system can be set to prioritize either product-first or location-first methodologies.

This ensures that either entire pallets are moved efficiently to single locations or mixed items are distributed across several locations based on space and accessibility.

This configuration flexibility allows warehouses to adapt the software to meet their unique operational needs, ensuring that the automation not only supports but enhances the efficiency of warehouse operations. Whether handling small single-cart receivings or managing complex, diverse inventories requiring staged processing, Cleverence provides a robust solution that streamlines tasks and reduces errors through smart configuration and guided processes.

One-Stage vs. Two-Stage Receiving

The choice between one-stage and two-stage receiving can significantly influence both inventory accuracy and labor costs, affecting the bottom line and operational efficiency of warehouse management.

The impact on inventory accuracy:

• One-Stage Receiving

In a one-stage process, goods are directly placed in their final storage location immediately upon receipt.?

This approach minimizes handling and the potential for errors during multiple stages of movement.?

However, the accuracy of this process heavily depends on the initial receiving checks. If items are not correctly verified against purchase orders and shipping documents at the point of entry, there could be discrepancies that go unnoticed until a later inventory audit.?

Automation tools like barcode scanners and real-time data entry are crucial in enhancing accuracy in this method.

• Two-Stage Receiving

This method typically involves more checkpoints, such as an initial sorting area where items are inspected, sorted, and sometimes repackaged.?

This additional step allows for a more thorough verification process, potentially catching errors or damages before items are shelved.?

While it can be more labor-intensive, the increased handling can lead to higher precision in inventory records, as discrepancies can be addressed early in the receiving process.

The impact on labor costs:

• One-Stage Receiving

Generally, this method requires fewer touches of the product, which can translate to lower labor costs.?

The direct route from receiving to final placement eliminates the need for intermediate handling, reducing the time and labor required.?

This efficiency makes it particularly advantageous for operations with limited personnel or those seeking to streamline workflows.?

However, it demands high accuracy in initial receiving practices to avoid costly errors that could require additional labor to resolve later.

• Two-Stage Receiving

Although this method may involve higher labor costs due to the increased handling of goods, the division of labor into specialized tasks (receiving, quality control, putaway) can optimize the use of workforce skills and improve overall job performance.?

Employees can become experts in specific stages of the receiving process, potentially reducing errors and increasing throughput.?

The added labor cost could be justified by the reduced risk of inventory inaccuracies and the need for subsequent corrections, which are often more disruptive and costly.

The decision between one-stage and two-stage receiving should consider the trade-off between potential labor savings and the risk of inventory inaccuracies. Warehouses with high-value items, complex inventory needs, or high volumes may find that the additional labor costs associated with two-stage receiving are offset by the gains in accuracy and reduced need for corrections. Conversely, operations that handle uniform products or have smaller volumes may benefit more from the cost savings and simplicity of one-stage receiving.

In both scenarios, integrating advanced automation systems can help mitigate the downsides of each method. Systems like Cleverence not only streamline the receiving process but also ensure that data accuracy and labor efficiency are maximized through features like real-time tracking, automated sorting, and guided putaway processes. This technology investment can significantly enhance the impact of the chosen receiving method on inventory accuracy and labor costs.