Delivery vs Shipment

[Former Member]

Hi Experts,

"Unlike packing in the delivery, packing in the shipment can be carried out for several deliveries."

I would like your help to clarify why the difference between Delivery and Shipment.

How can a delivery be made or a delivery order be processed without a Shipment?

Thanks.

regards

Tom

[Former Member · Accepted solution]

hi tom,

Delivery: individual delivery

Shipment: collection of deliveries which has to be delivered if route is same.

let me say an simple lay man example:

daily 5 trucks goes to 5 destionations and they follow the same route as ROUTE 1,2,3,4,5.

you have 10 deliveries to deliver in the same route where your truck is going by route 1.

will you divide those 10/5 =2 deliveries and assign 2 deliveries each. of course you can do that but the freight cost may get double or triple.

so that smart way is to have all the 10 deliveries into one shipment and deliver it.

2. this is standard process or functionality given by SAP.

normally those who has thier own fleet of transportation they use this tranportation module & also how the incoterms 1 and 2 are defined in the process also depends on the useage of transportaion module.

balajia

[Former Member]

Dear,

The SAP module Logistics Execution makes a distinction between deliveries and shipments. A simple example can explain this difference.

What is the difference between deliveries and shipments?

The SAP module Logistics Execution makes a distinction between deliveries and shipments. A simple example can explain this difference.

When you order groceries on-line for delivery within a few hours, the supermarket receives your order and verifies the availability. The sales order is converted into a delivery for those products in stock. Normally your order will only consist of a few items, and therefore will not fill one van. Instead the car used to deliver your order contains many orders from various customers who live in your area. The shipment is used within SAP to group deliveries with the aim to have each shipment to represent a full car of groceries.

You notice personnel with their carts collecting the products within the shop. This picking activity is linked to a delivery. The ownership of the products change when they are placed in the van, which is called the u2018goods issue postingu2019 within SAP.

Typical shipment related statuses are the planning, loading and physical delivery of the products. Each shipment is linked to the van, so you could link the driver and car registration number to a specific shipment within SAP.

So the next time you see a van delivering groceries to customers, the car is the shipment and the bags of groceries for a specific customer is a delivery.

Also see this link : [;

Sandip

[Former Member]

This message was moderated.

[Former Member]

Hi,

Delivery is a shipping process. Here we create delivery document; picking, packing and posting goods issue are done.

Shipment is a process where the transportation fo goods from a shipper to a consignee takes place with agreed terms. Transportation planning, Picking address, delivery address and data/time, shipment cost are taken care here.

We can run the system without shipment funcitonality; but the shipping functionality is a must.

Regards,

K Bharathi