Maintain records of split deliveries to optimize freight planning and reduce costs.
The Challenge of Split Deliveries
A partial shipment, or split delivery, occurs when a single purchase order is fulfilled in multiple lots due to inventory constraints, supplier locations, or optimized routing. Without a clear system, this can result in:
- Poor Visibility:
- Increased Administrative Burden:
- Higher Last-Mile Costs:
- Customer Confusion:
Strategic Tracking for Optimization
Effective tracking transforms partial shipments from a necessary evil into a strategic tool. Here’s how to systematize the process:
1. Implement a Centralized Tracking System
Use a centralized TMS, logistics platform, or even a dedicated master spreadsheet. Every split shipment must be linked to the original Master Order IDChild Shipment IDs. This creates a clear parent-child relationship for all records.
2. Standardize Data Capture Points
For each partial shipment, mandatory data points should include:
- Child Shipment ID & Master Order ID
- Carrier and Tracking Number
- Contents (SKUs and quantities)
- Dispatch and Estimated Delivery Dates
- Actual Delivery Confirmation & Proof of Delivery
This standardized log is the foundation for analysis.
3. Proactive Customer Communication
Automate notifications to inform customers when a partial shipment is created. Provide individual tracking links for each segment and a clear overview of what is coming and when. This transparency builds trust and reduces inquiry load.
Measuring and Improving Consolidation Efficiency
Freight consolidation—combining smaller shipments into a larger, single load—is a primary method to reduce costs. Tracking is essential to measure its effectiveness. Key metrics to monitor include:
| Metric |
Description |
Optimization Goal |
| Consolidation Rate |
Percentage of shipments that are consolidated vs. sent separately. |
Increase the rate without causing excessive delay. |
| Cost per Unit/Weight |
Total freight cost divided by units or kg beforeafter
| Show a demonstrable decrease post-consolidation. |
| Container/Freight Load Utilization |
How fully the capacity (volume or weight) of a consolidated shipment is used. |
Maximize utilization to approach 85-95%. |
| Dwell Time vs. Savings |
The trade-off between holding goods to build a full load and the cost savings achieved. |
Find the optimal balance where savings justify the additional time. |
4. Analyze for Continuous Improvement
Regularly audit your partial shipment and consolidation records. Ask critical questions:
- Which suppliers or product categories most frequently cause splits?
- Are there patterns where consolidation could have been used but wasn't?
- What is the true total cost (including handling and admin) of a partial shipment?
Use these insights to negotiate with suppliers, adjust inventory strategies, and refine your freight planning rules.