How to Improve Your Warehouse Shipping and Receiving

How well do you know the ins and outs of your warehouse?

The warehouse shipping and receiving process helps companies gain insight into what products are leaving the warehouse and what shipments are expected to arrive soon. This process is imperative for ensuring the correct items are being sent to customers and that products received are organized according to inventory management standards.

The outbound shipping process follows products that are ready to be sent to customers. It starts with taking the shipping documents, picking, packing, labeling, and then loading the packages onto a truck to finally leave the warehouse.

The inbound receiving process follows materials that arrive at the warehouse. It starts with completing purchase orders for the necessary items, receiving them at the loading dock, unloading, checking that all the expected products arrived, and fitting them into the existing warehouse inventory structure. 

Keeping the shipping and receiving processes organized with other warehouse operations can be incredibly challenging. That’s why some companies use shipping software to automate the way they prepare and ship packages to their customers.

Shipping and receiving procedures

Although they work closely together, shipping and receiving are individual processes with different steps to follow. These steps may vary depending on a company’s unique warehouse layout and flow. 

The warehouse shipping process steps

• Order information is received detailing what items need to be pulled and foreseeable packaging requirements. 
• The picking process starts when warehouse staff begins pulling the items outlined in the order information. Some companies may choose to grab from the same group of items all at the same time or on an order-by-order basis.
• Quality control checks are completed before the items are prepared to ship.
• Once the items are organized, the packing and labeling process creates the final packages sent to customers. 
• Packages are then moved to the loading dock and placed onto pallets and shipping trucks. 
• A shipping log holds the updated information on all shipped items and their confirmation data. 

The warehouse receiving process steps

• Documentation is received detailing the incoming packages. This information includes the number of packages, size, weight, and how the incoming shipment will be delivered to the warehouse.
• The package arrival process begins when receiving trucks enter the receiving dock. At this stage, shipping and receiving clerks start planning where items will be placed. 
• Warehouse staff unloads the received packages using the necessary equipment.
• Quality control checks are done before anything leaves the receiving dock to ensure all ordered items were received and nothing was damaged in the shipping process.
• The putaway process is when the received items are given a place in the warehouse inventory management system and can begin being organized accordingly.

Benefits of an effective shipping and receiving process

A shipping and receiving process is essential to the overall success of a warehouse flow. Taking control of the process and streamlining movement has many benefits not just for shipping and receiving, but also for the entire warehouse.

Decrease delays

When the shipping and receiving area runs smoothly, you are less likely to experience significant delays. A smooth process ensures that items are effortlessly moved from receiving to inventory and then to production and distribution. Creating a strict putaway process helps decrease receiving times. Combining the picking and packing process helps reduce shipping times.

Count stock accurately

Shipping and receiving helps companies monitor everything that comes in and out of the warehouse. When these items are accounted for, keeping track of accurate inventory numbers becomes easier. With an effective shipping and receiving process in place, warehouse management teams have more faith in their stock counts and feel confident that all information is accurate.

Quality control

The shipping and receiving teams are given a firsthand look at every item entering and leaving the warehouse. Quality control teams should unpack and verify faulty items before shipping to a customer and ensure the quantity received is accurate.

Fewer shortages and surpluses

Having a better understanding of how inventory moves through the warehouse helps you identify exactly where changes need to be made. This extra visibility helps companies purchase the exact amount of materials they need, avoiding potential surpluses and shortages caused by inconsistent numbers. 

Improve customer service

A warehouse that perfects how their shipping and receiving processes operate gets products into customers’ hands a lot quicker. Accurate route planning and fast shipping are the most important factors to consider in this process. 

When a quality-controlled product is delivered faster than expected, you have a higher chance of retaining that customer. Companies that balance supply and demand and understand turnover time use shipping and receiving to create efficient warehouse in and out processes. 

Shipping and receiving challenges

Although shipping and receiving come together quite naturally, there are still some parts of warehouse operations that make the process challenging. 

• Training: Providing your warehouse employees with insufficient training can actively harm your operations. Invest in building your shipping and receiving team’s knowledge at every step of the process.
• Disorganization: A warehouse that lacks a clear workflow will make shipping and receiving very difficult. Create a straightforward warehouse layout that is easy to understand and doesn’t overcomplicate the process. 
• Working environment: Creating a positive working environment for warehouse employees is crucial. Shipping and receiving teams operate heavy machinery and tools, like forklifts and conveyors, so you must ensure those materials are safe to use. Creating a positive work environment also includes rest spaces outside the work area away from potentially hazardous materials.
• Replenishing items: Communication from the shipping and receiving department about inventory or warehouse issues is imperative for meeting customer demand. Warehouse management can also use demand planning to prepare for upcoming replenishment and re-order needs. 
• Package errors: Receiving the wrong item increases warehouse delays. Identifying these errors before they make a significant impact is very important. How you address shipping mistakes of your own says a lot about your company. Customers admire companies that acknowledge errors and have procedures in place to right the wrongs.

How to improve the shipping and receiving process

Improving shipping and receiving starts with making positive changes from the inside. Here are some best practices to follow as you work through the shipping and receiving process.

Prioritize training

Training should be a top priority before making significant changes to the way you ship and receive. This includes investing in appropriate instructional programs, ensuring management methods are clear, supporting open communication, and promoting employee feedback. If the training isn’t effective, you’ll likely incur major costs to fix mistakes.

Use inventory management tracking

Shipping and receiving teams should be properly trained on the warehouse’s inventory control method. This helps bridge the gap between docking areas and inventory storage and decreases the chance of miscounts. Companies use inventory management software to automate this process.

Inspect packages thoroughly

Looking through incoming and outgoing packages numerous times before they exit or enter the premises is very important. For outgoing packages, the difference between creating a loyal customer and a disgruntled one is checking the shipment before it leaves. 

For incoming packages, inspecting received items helps decrease the possibility of major delays.

Report issues quickly

Report discrepancies identified in received packages as soon as possible. The quicker you have the items you need, the faster the entire warehouse can continue operations as usual.

Implement automation

Artificial intelligence in a warehouse helps speed up shipping order fulfillment, decrease employee time needed to complete tasks, and lower the chances of human error. 

Shipping and receiving automation can help with the following processes:

• Automatically adjusting delivery specifications based on the carrier services
• Offering transportation visibility to customers
• Creating automatic shipping notifications
• Organizing shipping and receiving data between multiple warehouse locations
• Integrating with inventory management tracking methods, like barcodes and RFID
• Speeding up the loading dock process
• Exchanging information between devices 
• Handling customer returns in a timely manner

Shipping software

Consider utilizing shipping software to automate the shipping and receiving process. Shipping tools allow companies to streamline outgoing shipments, edit and print shipping details, and track shipping confirmations. Shipping software can be combined with transportation and fleet management tools to automate different elements of the supply chain.

To be included in this category, the software product must:

• Create labels for shipping products
• Include order management tools to collect up-to-date shipping information 
• Offer tools to combine with e-commerce platforms and other online retail sites

*Below are the top 5 leading shipping software solutions from G2’s Fall 2021 Grid® Report. Some reviews may be edited for clarity.

1. Sendcloud

Connect your online store, contact your local carriers, offer multiple shipping options, build a custom workflow, and make returns a breeze with Sendcloud. Sendcloud helps companies take control of their digital shipping process.

What users like:

“The biggest issue I was having with my business is that we did everything manually. We used an Excel sheet to keep track of addresses, names, shipping companies, pricing, and we even created a formula to sort them by country. After customers would place orders, we would send manual confirmation emails. 

With Sendcloud, we received praise from customers in Europe since they now have better prices and more weight freedom with their shipments. My customers are happy, so I’m happy. ”

- Sendcloud Review, Ingrid E.

What users dislike: 

“You’re automatically charged when you print a label, even if you don't use it. It would be easier if Sendcloud only charged once the shipping company scans it.”

- Sendcloud Review, Nina W.

2. FedEx Ship Manager

FedEx Ship Manager gives shippers the tools to access account information on any device, oversee employee productivity, configure shipping methods, and generate user shipping activity reports. 

What users like:

“FedEx Ship Manager makes it easy to send packages that arrive the next day. You can save shipment profiles if you often send packages to the same area. This saves time so you don’t have to keep writing the same address over and over. You can even schedule someone to pick up your package from your home or office.”

- FedEx Ship Manager Review, Laura D.

What users dislike: 

“Unfortunately, the software takes a while to load. When uploading a lot of addresses to ship items, it’s very difficult to print out a scan sheet for the people that pick up the shipment. It’s also very hard to find tracking numbers for past shipments.”

- FedEx Ship Manager Review, Melissa G.

3. ShipStation

Gain complete control of customer orders at every stage with ShipStation. ShipStation helps companies manage inventory among multiple warehouse locations, integrate with online marketplaces, and find the best rate for printing shipping labels.

What users like:

“ShipStation easily and effortlessly integrates with our e-commerce software. As long as you have the dimension data, labeling and sending a package is only a couple of clicks away. All the proper paperwork for international orders is printed for you, leaving out any guesswork. What's better is that a branded email with tracking information is automatically sent to the customer. No added steps, just pack the item, slap a label on the box, and send it on its way.”

- ShipStation Review, Steve J.

What users dislike: 

“Return labels are not available for international orders. Sometimes we send the wrong items to customers and when that happens, we are responsible for everything after. We have to reimburse our customers for the return shipping label they purchase. More often than not, the customer will purchase an expedited label even when we have advised not to do so.”

- ShipStation Review, Jessica T.

4. Stamps.com

Create a Stamps.com account to get all the benefits of a post office right from your computer. Stamps.com gives you the tools to send invoices, get postage discounts, and integrate shipping services into your existing workflow.

What users like:

“Stamps.com is absolutely foolproof. It makes mailing a lot of documents painless. I had to mail a document to a client in Mexico, which would have been time-consuming at the post office. With Stamps.com, I fill out the correct customs form and print my envelope in just a few minutes. It takes the guesswork out of mailing things.”

- Stamps.com Review, Angie S.

What users dislike: 

“Sometimes I have trouble if an address doesn't quite match. Instead of fixing the issue and adjusting to the format of the correct address, I am prompted with an error code.”

- Stamps.com Review, Corey V.

5. ShippingEasy

Oversee orders, organize packing and picking lists, track shipments, and automate the whole process with ShippingEasy. ShippingEasy helps companies create advanced reports with all the shipping information they need.

What users like:

“ShippingEasy one of the easiest shipping programs we've ever used. We've used several shipping programs but they were all difficult to use, had missing features, or just didn't perform like ShippingEasy. Their staff is always willing to help and I have never had to wait long to get answers to my questions. We’ve also seen an increase of conversations on our website since implementing the new campaigns tool.”

- ShippingEasy Review, Kathy P.

What users dislike: 

“I loved this software and its inventory tracking capabilities, but  that option has been removed for new clients. If they bring those capabilities back, I’ll come back and update this review.”

- ShippingEasy Review, James P.

Dear warehouse, you’re beautiful inside and out <3

A good warehouse flow helps a facility work like a well-oiled machine, with things coming and going constantly and efficiently. The way you handle these processes can set you apart from other retailers.

Shipping and receiving is a natural process, but optimizing it takes extra time and care. If you prioritize employee training, use an inventory management system, inspect incoming and outgoing packages, report issues, and take advantage of automation, you’ll be one step closer to creating a process that flows with your entire warehouse operations. 

Optimize how your shipping and receiving processes work in the big picture by designing the warehouse layout of your dreams.