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What is Shipping Management?
Meaning | Differences | Inclusions
| Latest Technology
Introduction
Shipping Management is the act of planning, executing, and controlling the entire shipment process. Though it may seem as a simple term but shipping management bears a lot of weight. For eg. : A tea seller who owns a small stall has to work on many levels from planning till execution just to make sure his business is running smoothly. Imagine how difficult it is for a shipping manager to plan and execute the entire shipping management process across different nations without a single error or leaving no scope for error. It takes time and patience. It takes a lot of organization and systematic planning and support from all fronts.
Difference between Shipping and Logistics
Management
Shipping is the act or process of transferring or transporting shipment from one place to another. Shipping is a closed term and contains information that is related only to shipping. Such as shipping costs, shipping documents, types of shipping, and many more. On the other hand, Logistics is a much complex term consisting of several different groups or departments. Where shipment is a concise and closed term, logistics is a broader term and shipping management is a part of logistics management.
“The line between disorder and order lies in logistics…” – Sun Tzu
For eg.: Sales and Marketing are two different terms though related to each other. Sales is the act of performing a specific task, which is selling. But marketing is a much broader term and sales is a part of the same. In the same manner, Shipping Management is a small part of Logistics Management.
a. Shipping Documents The shipping documents are the first step of planning. There are many types of shipping documents that are mandatory for the proper working of the shipment process. Few of them are shipping policy documents, shipping labels, preparing bills of lading and freight bills, shipping insurance documents, ensuring there is a packing list, and a commercial invoice paper. b. Types of Shipment Once, the shipping documents are in order, you need to check if the type of shipping is mentioned, and if not, make sure the same is present (at least for internal purposes). This way, there are less chances of discrepancies and transparency is maintained between both the parties. The types of shipment include rail shipment, road shipment, air shipment, and sea shipment. c. Prepare Invoice Status The shipping documents are checked and the type of shipment is also verified. It is time to make sure the payment terms are clear, and if not, the same is mentioned on the payment documents. Always maintain a ledger for internal references where the invoices of each and every shipment is clearly mentioned. Also, clarify the same with the client to ensure clarity and transparency. The invoice status should mention if the transaction is made in partial payment or full payment. Also, mention if it is expedited shipping, flat rate shipping, or any such important information. Verify the Shipments
The shipment documentation is always important but so is the shipment itself. Ensure there is a packing slip and packing invoice. Double-check all the goods against the documents and ensure there are no discrepancies. Make sure the product description, quantity, rates, and shipping terms are correct and clearly visible. Track the Shipments
Conclusion
Shipping Management has evolved with time. It is definitely important to stay updated with the changing technology. In the same manner, it is essential to be organized for a better and smooth functioning of the shipping management system. Be sure to keep your documents in order, be volatile, and make sure to check the shipments before dispatching them. Also, keep your clients updated and maintain clarity. This helps to build trust as well as confidence in your management structure.
References
Difference between Shipping and Logistics Management Most important Shipping Documents
