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Improve Inbound Logistics with a Modern Warehouse Management System

Weak receiving shows up everywhere: wrong stock counts, late orders and inventory values nobody trusts. How a warehouse management system helps.

Wienanto Tanuwidjaja3 min read

Baca artikel ini dalam Bahasa Indonesia: Optimalkan Logistik Inbound dengan Manajemen Gudang yang Lebih Baik

Inbound logistics covers everything from the moment goods leave the supplier until they are on the warehouse shelf and available to sell: ordering, receiving, checking, putting away and recording. When this stage is weak, the problems show up everywhere else, from wrong stock counts to late customer orders and inventory values in the books that nobody trusts.

Common inbound problems

  • Goods received without being checked against the purchase order.
  • Stock put away in different places with no record of its location.
  • Receipts recorded days later, so the system shows stock that is not available or misses stock that is.
  • Supplier bills that do not match what was actually received.

What a warehouse management system does

A warehouse management system (WMS) gives each step a defined process and a record. Typical functions include:

  • Receiving against the purchase order, with quantity and condition checks, often using barcode scanning.
  • Directed put-away to set bin locations, so stock can be found again.
  • Real-time stock levels by item and location.
  • Batch and expiry tracking where the product needs it.
  • Integration with purchasing and accounting, so receipts, supplier bills and inventory values stay aligned.

Matching receipts to bills

A simple control with a big impact is the three-way match: purchase order, goods receipt and supplier bill must agree before the bill is paid. It prevents paying for goods that never arrived and keeps accounts payable accurate.

Where to start

You do not need a large system on day one. Start by standardising how goods are received and recorded, set up bin locations for fast movers, and make sure receipts reach the accounting system the same day. See also inventory and warehouse management. For inventory in Xero, see inventory management with Xero. Logiframe's accounting outsourcing team helps make sure inventory values and cost of goods sold are recorded correctly every month.

Frequently asked questions

What is inbound logistics?

Everything from goods leaving the supplier until they are on the shelf and available to sell: ordering, receiving, checking, put-away and recording.

What is a three-way match?

A control where the purchase order, goods receipt and supplier bill must agree before the bill is paid.

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