3.07 – Receiving Merchandise
Managing the receipt of merchandise is essential for any business. Properly checking, logging, and storing all goods, supplies, ingredients, and other merchandise is crucial to avoid losses from unacceptable quality or shortages in shipments. Establishing a regular receiving routine helps monitor vendors and reduces the chance of shortages. If your franchisor provides a list of recommendations and procedures for maintaining inventory, follow it. If not, the following guidelines will help.
Considering Key Drop Delivery
Having suppliers make deliveries through the front door during busy hours can be disruptive. Select suppliers who work with you on their hours of delivery, frequency, and delivery methods.
Many reputable companies offer key drop delivery. The vendor has a key and makes deliveries during off-hours, such as at night or early in the morning. Often, refrigeration units are accessible from the outside, allowing deliveries to be made without disrupting the business. Merchandise is placed in designated areas, and any discrepancies can be addressed the next day. This method is often less expensive as drivers can travel when there is less traffic, making deliveries faster. Some cities may have restrictions on truck sizes during business hours, making key drop delivery even more advantageous.
Receiving Deliveries at Any Kind of Franchise
When receiving merchandise, follow these general tips:
- Schedule Deliveries: Ensure suppliers schedule their deliveries in advance. Accept deliveries only during specific hours, preferably during off-peak times.
- Vendor Parking: Require vendors to park in an out-of-the-way spot, reserving the front of your business for customers.
- Delivery Protocol: Have the delivery driver bring all products into the building before checking them. Some systems prefer their own employees to bring merchandise into the store.
- Verify Merchandise: Confirm that the merchandise received is for your business.
- Check-In and Check-Out: Physically check every item. Check all cartons and boxes when the vendor is leaving to ensure they are empty. Perform vendor check-in away from the vendor’s display and existing merchandise.
- Watch Helpers: Be cautious of vendors’ helpers who may distract you during check-in.
- Store Perishables Immediately: Put away all perishable products as soon as they arrive.
- Check Expiration Dates: Verify use and expiration dates to ensure you have enough time to sell the products.
Checking the Goods After They're in Your Location
When a delivery arrives, it can be overwhelming. Here’s how to manage it effectively:
- Inspect for Damage: Examine every box for signs of damage, such as tears, crushed cardboard, tampering, rattles, dampness, bad odors, dented cans, and substitutions of standard items.
- Open Suspect Cartons: Before signing for the boxes, open any cartons that appear to have been opened and resealed or show signs of internal damage. Note any damages on the receiving record.
- Check Date Codes: Always check the date codes on products to ensure they are within the acceptable range and can be sold before they expire.
Verifying Invoices
Ensuring you get what you pay for is crucial to avoid financial losses. Here are some tips:
- Match Receipt with Delivery: Before accepting the delivery, check each item on the delivery receipt against the delivered product and the order. Compare quantities received with quantities ordered. Count the number of cartons delivered and compare this to the driver’s record or freight bill. Never sign for more cartons than you receive. Note any discrepancies on the freight bill or receiving record.
- Retain Delivery Receipts: Never give the delivery receipt back to the vendor. Obtain the receipt when the vendor walks in and do not return it. Manipulating the delivery receipt is a common way some vendors steal from franchise locations.
- Verify Substitutions: If the vendor made a substitution, call your franchisor’s field consultant to verify it is valid and acceptable. Inform the driver and note on the invoice that unapproved substitutions are subject to return for full credit.
- Mark Shortages: If you don’t receive an item listed on the delivery receipt, have the driver clearly mark the item “Short” along with the quantity not received. The driver should sign the delivery receipt before you sign it.
By following these guidelines, you can ensure efficient and accurate management of your merchandise receipts, maintaining inventory quality and reducing losses.
