3.1 Order consolidation
Order consolidation is the stage of preparing goods for distribution that comes after orders are picked and marshalled and before they are packed and dispatched. Many customers order small quantities at different times, and sending each order separately would waste vehicle space, fuel, staff time and documents. By looking at all the orders waiting for dispatch and combining those that can travel together, the stores and dispatch team turn many small movements into fewer, fuller ones while still meeting each customer's delivery date.
Example: a stationery and office supplies distributor may receive twelve small orders in one morning from shops along the same road. Instead of sending a van for each, the dispatch officer combines them into one load for a single afternoon trip.
Where consolidation fits in order processing
Consolidation follows the receipt, retrieval and marshalling of orders and comes before packaging and dispatch. It uses information from the orders received (delivery addresses and dates), from the store (what has been picked and checked) and from transport (vehicles and routes available). Its output is a set of consolidated shipments, each with its own load plan and documents.
Consolidation and marshalling compared
- Marshalling: Brings together the items of each picked order, checks them and arranges them in lanes so that each order is complete.
- Consolidation: Decides which complete orders, or parts of orders, travel together in one shipment and on which vehicle, using their delivery addresses, dates, weights and volumes.
- How they link: Marshalled orders are the input to consolidation. Once the loads are decided, the orders of each load are kept together but separately labelled until they are packed and dispatched.
People involved in consolidation
- Stores or dispatch officer: Reviews the orders awaiting dispatch and decides which ones are combined.
- Transport officer: Advises on vehicles, capacity and routes available for the consolidated loads.
- Sales or customer service staff: Confirm delivery dates and inform customers when orders are combined or rescheduled.
- Checkers and loaders: Bring the consolidated goods together, check them and prepare them for packing and loading.
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Create a free account 🔒3.2 Definition of order consolidation
Order consolidation is the process of combining two or more customer orders, or parts of orders, that share a common destination, route, customer or delivery time into a single shipment or load, so that they can be packed, documented and transported together a…
🔒3.3 Advantages and disadvantages of order consolidation
Order consolidation saves money and effort, but it also brings delays and risks if it is not managed well. The stores and dispatch officer must weigh the savings from fuller vehicles and fewer trips against the effect on delivery times and the extra care neede…
🔒3.4 Factors to consider in consolidation
Before combining orders, the stores and dispatch officer checks whether the orders can really travel together without breaking a promise to a customer or risking the goods. The factors below decide which orders are combined, how many and on which vehicle. Cons…
🔒3.5 Steps in order consolidation
Order consolidation follows a set of steps that take the orders waiting for dispatch and turn them into checked, documented consolidated loads. Following the steps in order ensures that no order is forgotten, that combined goods remain identifiable and that ev…
🔒3.6 Methods of order consolidation
Methods of order consolidation are the different bases on which orders are combined into shipments. A warehouse may use one method for its regular customers and another for distant or occasional ones. The choice depends on the spread of customers, the volume o…
