Receiving Materials at a New Mine - Setting Up

Friday 14 March 2014

Almaty Office, Kazakhstan

15°C Cloud & Rain


In our outline of setting up supply chain at a new mine, previous blogs have covered

-          Management controls as they relate to Supply Chain

-          Manpower Resources

-          Finance and SCM Coordination

-         Warehouse design and layout

-          Foundations – establishing IT records and reporting, setting parameters and inventory and replenishment management

-         Procurement

-          Logistics and Importation


This blog discusses Receiving of Materials.


Goods that are received ‘offshore’ are also finally received on arrival at final destination,  usually at your main warehouse.  Receiving is a disciplined process to avoid mishandled, lost or stolen goods. 


Accurate and prompt record-keeping of receipts is important to avoid inaccurate inventory records, poorly costed non-stock purchases and delays to supplier payments.


It is strongly recommended that a dedicated and isolated receiving area is designed for incoming consignments, with a similar area outside for larger items. No persons are permitted into this area unless accompanied by dedicated receiving personnel.  It is very common for non-supply personnel (often end-users) to help themselves to incoming needs prior to processing unless a solid process in in place.  Dedicated receiving personnel will be accountable for losses.


On arrival of delivery vehicles / railcars, loads are photographed and manifests carefully checked to ensure all packages are present.  After offloading, goods are checked against both the supplier’s delivery advice and against the PO/Contract.  Discrepancies are reported to a supervisor.


Once cleared the goods are input to the Supply module of the company’s software program, the goods are transferred to collection points.  If the goods are for inventory replenishment they are transferred to their permanent warehouse locations, which information is input to the Supply module.  If goods are not for inventory, the requisitioner is notified and collects his goods; they are located in a holding/collection area awaiting collection.  Reminders are sent concerning slow collection and transferred to long-term storage if not yet required.


When discrepancies due to damage in transit, wrong goods, poor quality goods, over or under supply are discovered, a Supply Discrepancy report (SDR) is raised and the warehouse supervisor will determine action to be taken, often in coordination with his manager, requisitioners and procurement personnel (who are responsible for discussions with suppliers).  Goods will be held in an isolated discrepancy holding area until the problem is resolved.


Goods flow two ways and an efficient despatch procedure is required.


All procurement procedures will be supported by detailed manuals in relevant languages.


CBC is able to undertake and support this crucial element of setting up for an efficient mining supply procurement operation.



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