Convert orders into the right shipments based on stock, warehouse capacity, delivery commitment, and transportation costs.
Shipment planning determines from which warehouse, on what date, in which package or load, and by which transportation method the order lines will be shipped. An order can be fulfilled in a single shipment or in partial shipments from different sources.
During planning, the customer's requested delivery date, stock availability, warehouse preparation capacity, carrier cutting times, product specifications, and the impact of splitting the order should all be considered together.
Shipment planning inputs
Order lines and quantities requested
Stock reservation and source warehouse
Product volume, weight and transport class
Delivery address and service area
Requested delivery date or time range
Warehouse work schedule and capacity
Carrier services and cutting times
Partial delivery permits
Consolidation and division decisions
Combining products in a single shipment can reduce transportation costs; however, it can delay delivery due to inventory holdings. Splitting an order can increase speed but raise costs and environmental impact. Regulations should consider customer preference, service level, and profitability together.
Planning outputs
Shipping number and associated order lines
Source repository and planned preparation date
Carrier, service level, and route.
Package, pallet or load plan
Estimated shipping and delivery date
Delivery appointment or time slot
Special shipping and delivery instructions
Rescheduling
Stock shortages, warehouse delays, carrier capacity issues, or customer changes can affect the schedule. Rescheduling should update order and customer communications; previous commitments and the reason for the change should be traceable.
Planning performance
Difference between planned and actual shipping date
Order split rate
Warehouse and carrier capacity utilization.
Packages and costs per shipment
Timely shipping and delivery
Manage the shipping schedule not as a simple process of sending order lines to the warehouse, but as an operational decision-making system that balances delivery commitments, capacity, cost, and customer preferences.