What is the receiving department responsible for?
The receiving department is considered the authoritative department that will accept the purchases upon actual receipt. Once the shipment has been processed by the receiving department and the receiving report is complete, the goods are then stored in the warehouse. In most companies, the receiving department and the warehousing department are the same group of individuals.
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What departments in the inventory cycle should be segregated?
There are four key departments that are involved in the inventory cycle that should be segregated. The four departments are the purchase requisition department, the purchasing department, the receiving/warehousing department, and the shipping department. The visual below outlines the flow of items through the inventory cycle and what each department is responsible for: