Receiving, replenishment and the cost of getting it wrong
In retail, things finish how they start
Inventory accuracy begins at the receiving dock
Receiving stock should be one of the simplest steps in retail inventory management. Product shipments arrive, stock is checked in, and then it is made available for sale. Simple right? In reality, it is one of the most error-prone activities in retail, and it’s where inventory accuracy starts to unravel.
And when receiving goes wrong, everything downstream is affected.
The hidden impact of poor receiving practices
In busy and fast-moving retail environments, stock often arrives when teams and systems are under pressure. People are busy, deliveries come in waves and accuracy depends on manual checks, item-by-item scans and reliable processes.
One missed step, and errors creep in immediately.
Short shipments go unnoticed. Extra items aren’t recorded. Wrong SKUs are scanned. Cartons are counted instead of units. Items are misplaced or moved to where they shouldn’t be.
From that moment on, the system is not in sync with reality. And chaos ensues. These early receiving discrepancies show up later as:
- Out-of-stocks that shouldn’t exist
- Re-stocking/overstocking of items already on hand
- Delayed replenishment to stores
- Confusion over what is available to sell
- Time wasted investigating issues that started days or weeks earlier
Replenishment relies on trust
The decision to replenish stock is only as good at the data behind it. If receiving data is inaccurate, replenishment becomes guesswork.
Stores think stock hasn’t arrived. Warehouses are adamant it has. Buyers reorder “just in case”.
The result is too much of the wrong products and not enough of the right ones, meaning a direct hit for margin, cashflow and customer satisfaction.
Why traditional receiving processes and practices struggle
Barcode-based receiving relies heavily on manual scanning and human consistency. In high-volume and fast-paced environments, this creates friction. It takes time, it’s labour-intensive and it’s vulnerable to small mistakes that have big downstream consequences.
Once inventory data is compromised at the receiving stage, it’s extremely difficult to correct later without a full stocktake (which introduces even more cost and disruption and may also deliver inaccurate stock data when done manually via traditional methods).
How RFID changes everything
RFID is truly a game-changer when it comes to receiving. Stock is verified automatically and in bulk, with entire shipments scanned instantly without line-of-sight or manual handling and scanning of each item.
What this means for retailers:
- Faster receiving
- Immediate confirmation of what actually arrived (including under and over deliveries)
- Fewer discrepancies between purchase orders and physical stock
- Stock becomes available for sale sooner
- Clean and accurate data feeding replenishment decisions and forecasting
Accurate item-level data within minutes of stock arriving ensures that replenishment decisions are based on reality, not assumptions and guesswork.
Faster stock flow from dock to shelf
When receiving is accurate, replenishment becomes smoother. Stock moves quickly from warehouse to store, or from stockroom to shelf, without unnecessary delays. The benefits to retailers include:
- Fewer out-of-stocks
- Better sell-through
- Less time spent checking and double-checking
- More confidence across teams
The entire flow improves without increased effort. In fact, it’s just the opposite – RFID makes the process faster, smoother and more accurate with less effort and stress. People don’t have to work harder when the system works better.
Start with the end in mind
You might think that receiving is just a small part of the overall retail inventory management process, but it sets the tone for everything that follows. Simple mistakes at receiving have huge downstream impacts that can reduce margins and customer satisfaction.
RFID helps retailers get it right from the start, ensuring that inventory data is accurate from day one, replenishment is timely and customers see the products they want to buy. When you get receiving right, everything else gets easier.
If you’re ready to receive a boost to inventory accuracy and enjoy the many downstream benefits of accurate inventory data from the moment stock arrives, talk to the RFID experts at Ramp and we’ll help you get started.
