In this episode, we discuss the controls associated with shipping. This process begins with a verification that customer credit has been approved, proceeds to picking from stock, and ends with packages being prepared for delivery to customers. Key points made in the podcast are:
Audit sales orders for a credit approval stamp, to verify that the shipping manager is looking for the authorization stamp before mailing packages to customers
Compare picked items to sales orders to ensure that picks are correct
Investigate the reasons for product returns, to see if any goods were incorrectly shipped to customers
Prepare the daily shipping log, which is useful for verifying that all shipments have been invoiced
Investigate old open customer orders that have not been shipped, to see if additional sales can be generated from these stray items
Verify the accuracy of any labels being attached to shipments going to customers that use an evaluated receipts system, since these labels are triggering payments back to the company
It is best for the shipping department to have a fully integrated system, so that the shipping manager can verify credit approvals, print labels, and prepare billings of lading and shipping logs from the system.