Shipment Validation: The invisible source of errors in retail

Executive summary

Shipment validation is an invisible but critical process. When deliveries aren’t exactly what was expected, secondary errors arise in the store: incorrect inventory, search time, restocking issues, omnichannel cancellations and manual clarification.

RFID can help validate shipments faster and more precisely. This makes the comparison between announced, picked, packaged and actually shipped goods more data-based.

A GS1-US study on EPC/RFID in the Retail Supply Chain Data Exchange showed very high order accuracy with EPC/RFID in a real source-to-consumer fulfillment process and describes that RFID can significantly reduce data errors in the supply chain. Such results show: Shipment validation is not just logistics. It is inventory quality.

1. Why Shipment Validation is often underestimated

Many retailers only see delivery deviations in the store. Then the damage has already been done.

A store expects goods, but gets the wrong sizes. A box is incomplete. A shipment contains items for another store. An ASN is incorrect. The store books inventory that doesn’t actually exist.

Shipment validation is intended to detect such errors earlier.

2. The result of incorrect deliveries

Incorrect deliveries generate costs:

• incorrect stocks
• Branch complaints
• manual search
• Rework in the DC
• incorrect refill decisions
• Click & Collect cancellations
• Customer frustration
• Inventory differences
• Loss prevention confusion

A delivery error is rarely only paid for once. It goes through several processes.

3. Classic testing is limited

Manual testing can work, but it is slow and prone to errors. Barcode inspection is better, but often requires visual contact and individual scanning.

With high volumes, variants and narrow time windows, classic testing reaches its limits.

RFID can help because multiple items or packaging units can be validated more quickly and without contact.

4. What RFID can do for shipment validation

RFID can support:

• Comparison of expected and read articles
• Checking box contents
• Store-specific shipping control
• Outgoing goods validation
• Shortage and excess quantity detection
• automatic exception detection
• better ASN data
• faster clarification

The benefit comes from comparison: What should be in the broadcast? What’s really in it?

5. Item level, case level or pallet level

Shipment validation can take place at different levels.

Item level is useful for variants, high error effects or store fulfillment relevance.

Case level is useful for cardboard or packing units.

Pallet level can be sufficient for rough goods movements, but is often less precise for store inventory.

The right level depends on the risk and the process.

6. The connection point to omnichannel

If the delivery is incorrect, the store inventory is incorrect. If store inventory isn’t right, omnichannel suffers.

Shipment validation therefore influences:

• Online availability
• Click & Collect
• Ship from store
• refill
• Inventory
• Customer experience

Omnichannel quality starts with delivery quality.

7. Exception processes are crucial

RFID detects deviations. But the process must define what happens next.

Questions:

• Will the shipment be stopped?
• Will it be corrected?
• Is a deviation documented?
• Who gets a message?
• Will the store be informed?
• Is the ERP/WMS updated?
• How are shortages accounted for?

Without an exception process, RFID detection remains ineffective.

8. Data integration

Shipment validation must be connected to systems:

• WMS
• ERP
• ASN
• Store system
• Reporting
• Omnichannel
• Supplier portals

This is the only way to turn the test into a data flow.

9. KPIs for Shipment Validation

Relevant metrics:

• Shipment Accuracy
• ASN Accuracy
• Error rate per supplier
• Error rate per product group
• manual clarification time
• Outbound goods throughput
• Claims/complaints
• Store inventory fixes
• Cancellation rate due to missing goods

10. Typical mistakes

Mistake 1: Only measure store inventory but ignore delivery errors.

Mistake 2: Introducing RFID validation without an exception process.

Mistake 3: Not defining a clear level: Item, Case or Pallet.

Mistake 4: Not including supplier quality in the evaluation.

Error 5: Not returning validation results to systems.

11. Checkpoint® Perspective

Checkpoint® can support shipment validation via labels, readers, hardware and software concepts. A realistic process design is important: Which goods movement should be validated, what is the throughput, what error costs arise and which systems have to react?

12. Conclusion

Shipment validation is one of the invisible foundations for reliable inventory.

RFID can help make shipment errors visible earlier and improve quality between DC and store.

> Any incorrect delivery is a subsequent inventory error.