Receiving Discrepancies in a 3PL: What to Do

When a delivery does not match the notice, count again with a second person, record the type and quantity of the discrepancy, hold the affected stock, and tell the client the same day. Take the Monday when a client emails to say they sent forty cartons and your receiver counted thirty-eight. Who is right, and who pays?

The answer rarely depends on who is more honest. It depends on what you recorded at the dock door, and when. This page gives you a routine you can print for the receiving desk.

The four kinds of discrepancy

1. Short. Fewer units arrived than expected.
2. Over. More units arrived than expected.
3. Damaged. The right units arrived, but some are not in sellable condition.
4. Wrong item. Something arrived that is not on the notice, or the label does not match what is inside.

Each one needs a different response. A short count needs a recount, a damage needs photos, and a wrong item needs the client to say what should happen to it.

Before the truck arrives

The routine starts with the notice, so settle three things in advance.

Ask clients for an advance notice on every delivery, with SKU, quantity, carton count and pallet count. Ask for a reference number you can match to the carrier's paperwork. And put the receiving rule in writing: counts are made at your dock within a set time, and your count is what the system records unless the client shows evidence otherwise.

Clients accept rules more easily when they hear them before the first delivery, not after the first dispute.

At the dock door: the steps

1. Check the outside first. Before you sign the driver's paperwork, look at the pallets and cartons for torn wrap, crushed corners and wet stains. Note anything you see on the paperwork before you sign.
2. Match the paperwork to the notice. Pallet count, carton count and reference.
3. Count. Count cartons first. Then, if the client's rules need it, count the units inside a sample or all of them.
4. Compare with the notice in the WMS. Enter the counts. A good system shows the difference straight away.
5. If there is a difference, stop and recount. A second person counts without seeing the first count. Most shorts turn out to be miscounts.
6. If the difference holds, record a discrepancy. Write down the type, quantity, item and a short note, and attach photos.
7. Move the affected stock to a hold location. Never mix it with good stock.
8. Tell the client the same day. Send the facts, the photos and the options.

The image below is the yard view from the Microsive demo platform, using demo data, with trailers parked at the dock doors where these steps happen.

What to record

Keep the record short enough that people will actually fill it in.

The time stamps matter more than people expect. If a pallet sat on the dock overnight before anyone counted it, the client's argument gets stronger and yours gets weaker.

How the WMS should handle it

Whatever you use, check that:

• the discrepancy is a record of its own, and more than a note;
• stock with a discrepancy is held and cannot be allocated to orders until someone releases it;
• you can see every open discrepancy in one list, by client and by age;
• changing the received count later needs a reason and a user name;
• the client can see the outcome in a portal or a report.

A spreadsheet can do this too. You need one tab for discrepancies and one rule: nothing leaves the hold area until someone writes down who released it and why.

What to tell the client

Keep the message plain. For example:

"Your inbound 0412 arrived today at 9:40. The notice said 40 cartons and we counted 38, confirmed by a second count. Photos are attached. Please tell us by end of day tomorrow whether to hold, wait for the missing cartons or return the balance. The 38 are stored and available."

That message holds the facts, the proof, the options, a deadline, and a note of what is already safe. A client can answer it in one line.

What to do with each type

• Short. Record the count you have and ask the client to check with the sender or carrier. If the missing cartons turn up later, receive them against the same notice.
• Over. Ask the client whether to keep the extra, treat it as a new receipt or send it back. Do not quietly add it to stock.
• Damaged. Photograph it before moving it, then move it to a damaged hold. The client decides whether to dispose, rework, return or sell as is. The claim against the carrier is usually the client's to make, using your photos and notes.
• Wrong item. Hold it, identify it, ask. If an unknown item cannot be linked to any client, keep it in a labelled unknown location and review it weekly.

A weekly review

Once a week, spend a few minutes on the discrepancy list and ask three questions.

Which clients cause the most? Their notices may be inaccurate, and a short call can fix that. Which receivers record the most? One may be more careful than the others, or one may need training. Which items have been open too long? Chase the client or agree a decision with them.

This is also the moment to check that your handling time shows up on the invoice, if your agreement says it should.

Common mistakes

• Signing for a delivery as "received in good condition" before looking at it.
• Counting once and trusting the number.
• Leaving discrepancies as notes on paper instead of records in the system.
• Letting held stock slide back into the pick area.
• Telling the client late.

If you are comparing systems and discrepancy handling matters to you, ask each vendor to show a short pallet with photos, from receipt through to the client message. How they handle it will tell you a lot about how they think about your dock.

Questions people ask

What are the types of receiving discrepancy in a 3PL?

There are four. Short means fewer units arrived than expected, over means more arrived, damaged means the right units arrived but some are not sellable, and wrong item means something arrived that is not on the notice or the label does not match the contents.

What do you do when a delivery arrives short?

Stop and recount, with a second person counting without seeing the first count. Most shorts turn out to be miscounts. If the shortage holds, record the count you have and ask the client to check with the sender or carrier.

What should you record for a receiving discrepancy?

Record the receipt reference, SKU, expected and counted quantities, the type, who counted and who recounted, photos, the arrival and count times, and when and to whom the client was told.

How should a WMS treat received stock with a discrepancy?

The discrepancy should be a record of its own, not a note. The stock should be held so it cannot be allocated to orders until someone releases it. Open discrepancies should show in one list by client and age, and changing a received count later should need a reason and a user name.

How do you tell a client about a short or damaged delivery?

Send the facts, the proof, the options, a deadline and a note of what is already stored and available. For example: expected 40 cartons, counted 38 after a second count, photos attached, please say by end of day tomorrow whether to hold, wait or return the balance.