Goods in from the mill

When the mill's lorry pulls in at one o'clock, the store has two jobs at once: get the bags and cartons off quickly so the lorry can leave, and make sure the distributor is not paying for goods that never arrived. Rushing the first usually ruins the second. This tour shows the warehouse lead receiving the delivery against the purchase order, so both jobs get done before the driver drives away.

Step by step

1. Scan the purchase order number. The warehouse lead scans the number on the supplier's delivery note. The lines expected from the mill appear straight away, with what was ordered on each. There is no copying from a paper order book.

2. Read the screen: ordered, received, check. Each product sits on its own line with three things: the quantity ordered, the quantity received so far and a check that turns to Matches when they agree. At the start, nothing has been counted.

3. Count each line as it comes off. Bags of rice, bags of dhal, cartons of soya meat. As each is counted or scanned, the received figure on its line goes up. Unloading in product groups, all the rice then all the dhal, makes this much quicker than counting a mixed stack at the end.

4. Find the line that does not add up. When the lorry is empty, one line is behind. The soya meat came three cartons short. The check column shows "Short 3" in place of Matches.

5. Save it as received short. The line is saved with what actually came. The three missing cartons stay open on the purchase order. When the office rings the mill, both sides can see exactly what is outstanding. Nobody has to remember it.

6. Compare the supplier's invoice prices. The delivery note or invoice from the mill shows one price higher than on the purchase order. Prices of grain and pulses move often, so this is common.

7. Type the new cost on that line only. In the costs panel, the warehouse lead types the new cost on the line where the price changed. The other lines are left empty and keep their cost, marked Same. Only the price that moved is touched.

8. Save and add to stock. One button saves the goods received note. The stock goes up straight away, so the reps out on their afternoon round can sell what has just arrived. The short line stays open until the mill sends the rest.

The delivery in the tour

A worked example: why the new cost matters

Say red dhal sells to shops at Rs 8,150 a bag on the dealer price list, and the last delivery cost Rs 7,300 a bag. That is a margin of Rs 850 a bag, about 10.4%. This delivery's invoice shows Rs 7,550. If nobody types the new cost, the system still believes each bag makes Rs 850. The real figure is Rs 600, about 7.4%.

If the distributor sells 80 bags of dhal a week, that gap is Rs 20,000 a week of profit that appears in the reports but never reaches the bank. After the trade, middle and cash discounts many distributors give, the real margin on that bag may be thinner still, or even below cost. Typing the cost at goods in is what lets the report of products priced below cost catch it. Our guide to markup vs margin shows how to work out margin properly, and stock valuation explains how cost flows into what your stock is worth.

Part deliveries from the same order

Mills and larger suppliers often split an order across two lorries, especially when one product is short at their end. A purchase order can be received in parts for exactly this reason. Today's goods received note covers what came today. When the next lorry brings the three cartons of soya meat, the warehouse lead scans the same purchase order again, and only the open quantity is expected. Once every line has been received, the order is complete. If the supplier tells you the rest will never come, close the line so it stops looking like stock on the way.

Tips for receiving from mills and wholesalers

• Keep the lorry until the count is done. Once it has gone, a shortage is your word against the driver's.
• Unload by product. A pile of rice, a pile of dhal, a pile of cartons. Then each line can be counted in one go.
• Check pack sizes, not just products. A 25kg bag and a 10kg bag of the same dhal can arrive in similar sacks.
• Keep the supplier's paper with the goods received note. You will need both if you claim for the short cartons or question a price.

Common mistakes

Accepting the delivery note's quantity without counting. The note says what the mill meant to send. Count what was actually sent.

Saving the full quantity because "the rest is coming". The system then shows cartons that are not on the shelf, and the reps sell them.

Ignoring a small price increase. A few rupees a bag across hundreds of bags is real money. Type the new cost.

Forgetting the open line. If the mill never sends the three cartons, close the line and make sure you are not invoiced for them.

How goods in fits the distributor's day

The purchase order being received here was made when the buyer saw stock running low. Once the delivery is saved, the stock is available to the reps on their round and to the pick waves for tomorrow's lorry. A short delivery that is not followed up shows up again later as a line the picker cannot fill, which is where shops start to notice.

What to do next

If your store counts often disagree with the system, a regular count will find where the gap starts; stock control covers the habits that keep the two in step. For pricing that survives a cost rise, see markup vs margin.