Receiving involves verifying the authorization for goods received, as well as their quantity, quality, and condition. This is an essential function for incoming materials, though it can be sidestepped for receipts from suppliers that have been pre-certified as having met certain quality standards.

Following initial inspection, goods are then shifted to a holding area, where they are tagged and logged into the warehouse management system, and from which they are either transferred directly to the production area or (more commonly) stored in the warehouse.