Consolidated shipment in IFS Cloud is a structured approach to outbound logistics that ensures efficiency, accuracy, and seamless coordination. By combining multiple customer orders into a single transport operation, businesses can cut costs, reduce errors, and improve delivery reliability. Here’s a detailed breakdown of how it all comes together:
1. Packing of Goods: The First Step
Packing is where the consolidated shipment process begins. It’s not just about putting items in boxes; it’s about organizing goods in a way that optimizes space, ensures traceability, and prepares everything for smooth transportation.
The Packing Process
- Identify Items for Shipment: The system reviews sales orders or distribution requirements to determine what needs to be shipped, including quantities, item types, and any special handling instructions.
- Select Handling Units: Goods are packed into handling units — pallettes, cartons, or containers — based on their size, weight, and compatibility. The goal is to use space efficiently while keeping items secure.
- Assign Unique Identifiers: Each handling unit receives a unique ID in IFS Cloud. This ID is used for tracking throughout the shipment’s journey, from packing to final delivery.
- Check for Completeness: The system verifies that all items are packed and assigned to handling units. Nothing is left unallocated, and any discrepancies are flagged for resolution.
Linking to Consolidated Shipments
Once packing is complete, the handling units are assigned to a consolidated shipment record. This step groups all units — regardless of their original orders — under a single logistical operation. The system then:
- Optimizes Loading: Determines the best sequence and placement of units in the truck or container to maximize space and follow delivery priorities.
- Documents Details: Records the contents, weight, and dimensions of each handling unit, linking this information to the consolidated shipment for internal tracking and compliance.
Why Packing Matters
- Efficiency: Proper packing reduces wasted space, which means fewer trips and lower transportation costs.
- Accuracy: Digital tracking ensures that every item is accounted for, minimizing the risk of errors or lost goods.
- Compliance: Detailed packing data supports regulatory requirements, such as customs documentation or safety regulations.
- Visibility: Real-time tracking gives logistics teams and customers clear insight into the status of their shipments.
After packing, the process moves to loading, where the forwarder takes over.
2. The Role of Forwarders
Forwarders are the backbone of consolidated shipments. They are the logistics partners responsible for physically transporting the goods from the warehouse to their final destinations. Their role is critical in ensuring that everything runs on time and according to plan.
Assigning a Forwarder
- During the creation of a consolidated shipment, a forwarder is specified and linked to the shipment record. This step formalizes which company or contractor will handle the transport.
- The system supports the entry of forwarder details, including contact information, contract terms, and any special instructions.
What Forwarders Do
- Manage Transportation: Forwarders coordinate the pickup, transit, and delivery of all items in the consolidated shipment.
- Ensure Compliance: They follow predefined routes, schedules, and delivery constraints, such as time windows or handling requirements for specific goods.
- Handle Documentation: Forwarders ensure that all necessary paperwork — such as packing lists, customs forms, and delivery confirmations — is completed and accessible.
System Support for Forwarders
IFS Cloud provides tools to streamline forwarder management:
- Dedicated Process Models: Users can enter and update forwarder information using process models like «BDR Enter Forwarder,» ensuring all details are documented and easily accessible.
- Freight Payer IDs: The system allows users to assign default freight payer IDs at the forwarder level, simplifying billing and cost tracking for multi-party shipments.
- Real-Time Tracking: Forwarders and internal teams can monitor the shipment’s progress, from loading to final delivery, with updates visible in the system.
Integration with the Workflow
Once a forwarder is assigned:
- All packing, loading, and delivery activities are coordinated under their responsibility.
- The system links freight payer and receiver IDs to each shipment, automating billing and reporting.
- Communication between the forwarder and internal teams is seamless, with all documentation and tracking data available in one place.
3. The Full Consolidated Shipment Workflow
The consolidated shipment process is a well-coordinated sequence of steps, each building on the last to ensure smooth execution.
- Packing: Goods are organized into handling units, each with a unique ID. The system verifies that everything is packed correctly and ready for transport.
- Forwarder Assignment: A logistics partner is selected and linked to the shipment. Their details, including freight payer IDs, are recorded in the system.
- Loading: Packed handling units are loaded onto the transport vehicle. The system optimizes the loading sequence to use space efficiently and meet delivery priorities.
- Departure and Tracking: The shipment departs, and its progress is tracked in real time. The forwarder manages the transit, while the system provides updates to all stakeholders.
- Delivery: The forwarder ensures that all items are delivered to their respective destinations, with documentation and confirmations recorded in IFS Cloud.
- Completion and Reporting: Once all deliveries are complete, the system generates reports for billing, performance analysis, and audit purposes.
Key Benefits of Consolidated Shipments
- Cost Savings: By grouping multiple deliveries into one shipment, businesses reduce transportation costs and improve resource utilization.
- Reduced Errors: Digital tracking and automated checks minimize the risk of manual mistakes, such as misplaced or forgotten items.
- Improved Coordination: The integration of packing, forwarder assignment, and tracking ensures that all parties — from warehouse staff to logistics partners — are aligned and informed.
- Customer Satisfaction: Real-time visibility and reliable delivery schedules enhance the customer experience, building trust and loyalty.
FAQ
Q: What is a consolidated shipment?
A: A consolidated shipment groups multiple customer orders into a single transport operation, optimizing space, reducing costs, and simplifying logistics management.
Q: How does IFS Cloud ensure that all items are packed correctly?
A: The system identifies the items to be shipped, assigns them to handling units, and verifies that everything is packed and labeled. Each unit receives a unique ID for traceability.
Q: What role do forwarders play in consolidated shipments?
A: Forwarders are responsible for transporting the shipment. They manage pickup, transit, and delivery, ensuring that all items reach their destinations on time and in good condition.
Q: How does IFS Cloud track forwarders and their activities?
A: The system allows users to assign forwarders to shipments, enter their details, and track their progress. Freight payer IDs and delivery documentation are linked to the shipment record for easy access and reporting.
Q: What happens if an item is missing during packing?
A: The system flags any discrepancies during the packing process, allowing teams to resolve issues before the shipment departs.
Q: How is documentation handled in consolidated shipments?
A: All packing details, forwarder information, and tracking data are recorded in IFS Cloud. This ensures that documentation is complete, accurate, and readily available for compliance and auditing.
Q: Can consolidated shipment handle special requirements, such as refrigerated goods?
A: Yes. The system supports special handling instructions, allowing users to assign specific handling units or forwarders based on the needs of the goods being shipped.
Q: How does consolidated shipment improve efficiency?
A: By combining multiple orders into one shipment, businesses reduce the number of trips required, maximize transport space, and streamline logistics operations. This leads to lower costs and faster delivery times.
Q: What kind of visibility do customers have into their shipments?
A: Customers can track their shipments in real time through IFS Cloud, with updates on packing, loading, transit, and delivery status.
Q: Is consolidated shipment suitable for all types of goods?
A: While consolidated shipment is ideal for most goods, certain items — such as hazardous materials or oversized loads — may require special handling or separate transport. The system allows users to define rules and constraints to accommodate these needs.