Stock operations

How to Receive, Dispatch, and Transfer Stock

Most inventory errors happen during movement. A delivery arrives, an order leaves, or products move from the back room to the shop floor, but the stock record is not updated. Receiving, dispatching, and transferring stock are the three basic workflows that keep quantities accurate.

What does receiving stock mean?

Receiving is the workflow you use when new stock enters the business. This could be a supplier delivery, a returned item that is sellable again, or a product created in-house.

The receiving process should happen as soon as possible after the stock arrives. If the delivery is placed in the back room and updated later, the business may sell products that are not actually ready or forget to update the quantities.

1. 1. Open the receiving workflow.
2. 2. Scan or search for the product.
3. 3. Enter the quantity received.
4. 4. Choose the destination location or bin.
5. 5. Save the movement with a note if needed.

What does dispatching stock mean?

Dispatching is the workflow you use when stock leaves the business. This can include online orders, wholesale orders, internal usage, samples, damaged disposal, or any other outgoing movement.

The important part is that dispatching should reduce the available quantity and leave a clear history. If products leave without being recorded, your system will show more stock than you really have.

• Use dispatch for shipped orders.
• Use dispatch for stock given away as samples.
• Use dispatch for products removed from sellable inventory.
• Add a reason so the movement is understandable later.

What is a stock transfer?

A transfer moves stock from one location to another. The total quantity stays the same, but the quantity in each location changes. For example, moving 10 candles from Back Room to Shop Floor does not change total stock, but it changes where the products are available.

Transfers are important because location accuracy affects staff decisions. If the system says stock exists but nobody can find it, the inventory data is not useful.

How simple should movement reasons be?

Every stock movement should have a reason, but the reason list should stay short. Too many options slow down the team and create inconsistent history.

Start with a few clear reasons: Supplier delivery, Customer order, Location transfer, Damage, Return, Manual correction, and Stock count adjustment.

Should you scan stock movements?

Scanning reduces product selection mistakes. If two products have similar names, manual search can easily update the wrong item. A barcode scan is faster and safer, especially when receiving or dispatching many items.

Scanning also helps new staff because they do not need to know every SKU name. They scan the product, confirm the quantity, and save the movement.

How do you review stock history when numbers look wrong?

When stock does not match expectations, the movement history is the first place to check. Look for recent receiving, dispatch, transfer, and adjustment rows. The problem is often a missed delivery, a duplicate movement, or stock moved to another location.

Without history, the team can only guess. With history, you can trace the quantity step by step.

What are common stock movement mistakes?

• Receiving stock into the wrong location.
• Dispatching stock after the order has already been packed and forgotten.
• Moving products physically but not recording a transfer.
• Using manual corrections instead of proper receive or dispatch actions.
• Forgetting to separate damaged stock from sellable stock.
• Not adding a reason for adjustments.

What is a simple operating routine?

1. 1. Receive new deliveries before putting products on the shelf.
2. 2. Transfer products whenever they move between storage areas.
3. 3. Dispatch products when they leave the business.
4. 4. Use adjustment only when correcting a mismatch.
5. 5. Check movement history before changing a suspicious quantity.
6. 6. Export stock history regularly for backup and review.

FAQ

What is the difference between dispatch and transfer?

Dispatch removes stock from the business. Transfer moves stock from one location to another without changing the total quantity.

When should I receive stock?

Receive stock as soon as it arrives and before it is sold or moved into normal storage.

Should every stock movement have a reason?

Yes. A reason makes stock history easier to understand and helps identify problems such as damage, shrinkage, or receiving errors.