Shipping management

What is shipping management? Definition and classification

Shipping management refers to a structured process that lies between the areas of logistics and distribution. It forms the final area of responsibility in logistics and encompasses all measures necessary to transport goods from the seller to the end customer. The term therefore describes not only the actual shipping, but also all preparatory and accompanying activities. These range from initial order processing and picking to handover to a transport service provider.

Shipping management plays a central role for companies of all sizes, as it has a direct impact on customer satisfaction. A smooth shipping process contributes significantly to a positive shopping experience and strengthens customer trust. Errors in this area, on the other hand, often lead to complaints and damage the company’s image.

The correct organization of shipping management is becoming increasingly important, especially in the growing e-commerce sector. With rising order numbers and higher customer expectations regarding delivery speed and flexibility, companies must continuously optimize and adapt their processes.

The shipping management process at a glance

The shipping management process follows a logical sequence of different steps that must be interlinked to ensure efficient operation. It begins with order acceptance, where orders are recorded and released for further processing. This is followed by the automated generation of relevant documents such as invoices and delivery notes, which are required for both internal purposes and for the customer.

After the documents have been created, physical processing begins with order picking. The ordered items are removed from stock and assembled for shipping. The correctly picked order is then packaged and labeled with the necessary shipping labels and documents. The final step is the handover to a logistics service provider, who transports the goods to the recipient.

Let us advise you without any obligation and use the service around warehouse, dispatch and logistics

sales@lufapak.de +49 2631/384-0 Contactform

A functioning returns management system complements the shipping process and enables customers to return unwanted items without any problems. Modern software solutions help to automate and link these process steps. The complexity of the shipping process varies depending on the size of the company, the product range, and the business model.

From order to order acceptance: the starting point

Order acceptance marks the beginning of every shipping management process and lays the foundation for all subsequent process steps. As soon as a customer places an order, their data is recorded and checked for completeness and plausibility. This check includes delivery addresses, payment information, and the availability of the desired products. Upon successful validation, the customer receives an order confirmation, which signals the official start of the shipping process.

When orders are accepted, they are also prioritized according to various criteria such as order receipt, selected shipping option, or customer status. This classification determines the timing of further shipping management. Particularly urgent orders are marked accordingly and processed preferentially.

Error-free order acceptance is essential for efficient shipping management. Discrepancies or missing information at this stage often cause delays throughout the entire process and can lead to customer dissatisfaction. Modern order entry systems therefore provide support in the form of plausibility checks and automatic notifications in the event of irregularities.

Automated document creation in the shipping process

Once an order has been accepted, all necessary documents are created as part of the shipping process. This phase is characterized by a high degree of automation, which minimizes manual errors and increases process speed. The merchandise management system automatically generates invoices, delivery notes, shipping labels, and return documents based on the order data.

In addition to the legally required information, the invoice contains detailed information about the items ordered, prices, and discounts applied. The delivery note serves as an accompanying document for the goods and is required both for internal control purposes and as confirmation of receipt by the customer. Shipping labels contain all information relevant to transport, such as the sender, recipient, and shipment number.

Return documents are particularly important, as they enable customers to return items easily. They contain pre-filled forms and usually pre-printed shipping labels for return transport. Automated document creation is therefore a central element of shipping management and contributes significantly to increased efficiency. At the same time, it creates transparency for all parties involved in the shipping process.

Picking: The heart of shipping management

Order picking is at the heart of physical shipping management and begins as soon as all the necessary documents have been created. In this step, the ordered goods are removed from the warehouse according to the order data and assembled for further shipping. The accuracy of order picking is crucial to the quality of the entire shipping process, as errors at this stage can lead directly to incorrect deliveries and customer complaints.

Depending on the size of the company and the warehouse structure, different picking methods are used. In the person-to-goods principle, the picker moves through the warehouse and collects the required items. In contrast, in the goods-to-person principle, the products are automatically transported to the employee. After removal, a quality check is carried out to ensure that the picked items are complete and undamaged.

After successful inspection, the products are packaged and labeled with the shipping documents created earlier. The packaging must meet both transport requirements and product protection standards. If there are several items in an order, care is taken to ensure optimal packing density in order to reduce shipping costs and conserve resources. Correct picking is crucial for a smooth shipping process.

Handover to the carrier: interface to distribution

The direct sphere of influence of shipping management in the narrower sense ends with the handover of the picked and packed goods to the carrier or logistics service provider. This handover process marks the interface between the company’s internal logistics and external distribution to the end customer. The time of handover is largely determined by the agreed pickup times and the cut-off time of the respective transport service provider.

During the handover, the shipments are checked and documented. The packages are scanned, weighed, and provided with the appropriate transport documents. This documentation is used for internal tracking and ensures that transport damage or losses can be clearly identified. The shipment tracking numbers are usually forwarded automatically to the customers to provide transparency about the delivery status.

When the goods are physically handed over to the carrier, responsibility for them also changes hands. The logistics service provider is now responsible for delivering them to the end customer in accordance with the agreed delivery terms. Close coordination with the transport service provider is essential for seamless shipping management. Regular communication and designated contact persons on both sides can help to minimize interface problems.

Returns management as an integral part of shipping management

A functioning returns management system completes the shipping management process and is becoming increasingly important, especially in online retail. The ability to return goods easily is an important purchasing criterion for many customers. Accordingly, shipping management must also take returns into account and establish suitable processes. The returns documents generated during document creation form the basis for this.

After a return is received, it goes through several stages: First, an incoming goods inspection is carried out to check the returned items for completeness and condition. A decision is then made as to whether the products should be returned to the sales inventory, repaired, or discarded. At the same time, the refund or exchange for the customer is initiated.

The integration of returns management into the entire shipping management process makes it possible to gain valuable insights into the reasons for returns and to adapt your own processes accordingly. Systematic evaluation can, for example, provide information about quality problems or inadequate product descriptions. Efficient returns management therefore not only contributes to customer satisfaction, but also helps to reduce the return rate in the long term and improve the cost-effectiveness of shipping management.

Modern software solutions for shipping management

The complexity of the entire shipping process requires powerful software solutions that cover all areas and connect them with each other. Modern shipping management systems integrate seamlessly into existing merchandise management and shop systems and enable end-to-end data processing without media breaks. They automate recurring tasks such as document creation and support picking with intelligent picking lists or mobile recording devices.

A central feature of such software solutions is the integration of different shipping service providers. This makes it possible to select the optimal transport partner for each shipment and automatically generate the corresponding shipping labels. Tracking functions ensure that the shipping status can be traced at all times – both for the company and for the customer. In the area of returns management, the systems provide support through automated returns processing and inventory management.

Cloud-based solutions offer the advantage that they can be used anywhere and can be flexibly adapted to growing requirements. Investing in the right software pays off in terms of time savings, reduced error rates, and improved customer satisfaction. However, careful analysis of your own shipping processes and requirements is essential for successful implementation.

Optimization potential in the shipping process

Even with established shipping processes, there is often potential for optimization that can be identified through targeted analysis. A good place to start is the turnaround time for orders from receipt to shipment. Process optimization and automation can reduce waiting times and increase processing speed. Picking in particular often offers room for improvement, for example through optimized walking routes or the use of pick-by-voice or pick-by-light systems.

Packaging optimization is another important area. Standardized packaging sizes and materials can speed up the packaging process while reducing costs. Modern packaging machines automatically determine the optimal box size, thereby reducing shipping volume. This has a positive effect on transport costs and the environmental balance.

In the area of freight forwarder cooperation, conditions and services should be compared regularly. Bundling shipments or implementing time slots for pick-up can bring additional savings. Returns management also offers potential for optimization, for example through simplified return processes or preventive measures to reduce the return rate. Continuous process analysis and adjustment is therefore essential for efficient shipping management.

Conclusion: The importance of efficient shipping management for your business success

Well-planned and smooth shipping management is crucial to the success of a company. It acts as a link between sales and customer service and has a significant impact on the final impression customers have of their shopping experience. The timely delivery of complete and undamaged goods is a key factor in customer satisfaction and promotes long-term customer relationships.

Errors in the shipping process have a direct impact on the company’s bottom line – whether through additional personnel costs for error handling, lost sales due to returns, or damage to the company’s image caused by dissatisfied customers. Efficient organization in this area can, on the other hand, become a competitive advantage, especially if delivery times can be shortened and flexible shipping options offered.

The continuous optimization of shipping management should therefore be firmly anchored in the corporate strategy. Regular process analyses, the use of suitable software solutions, and employee training can continuously improve the performance of this important area of the company. Well-organized shipping management is not just a cost factor, but an investment in customer satisfaction and thus in long-term business success.

Zurück zur Lexikon-Übersicht

Do you have questions about this topic, would you like advice or are you looking for a service provider?
Contact us now and get advice