Shipment Planning: From Order to Load Building and Tendering

Where Shipment Planning Fits in Daily Execution

Shipment planning turns customer orders into executable loads that can be picked up, moved, and delivered with the right equipment, paperwork, and service constraints. The goal is to create a shipment that is: (1) physically buildable (cube/weight/handling), (2) compliant (documentation, hazardous, temperature), (3) schedulable (pickup appointments, dock capacity), and (4) tender-ready (complete data for carrier acceptance).

Step-by-Step Shipment Planning Workflow (Order to Tender)

Step 1: Intake and Validate Order Data

Start by validating that each order has enough detail to plan and build a load. Missing dimensions, weights, or special handling flags are the most common causes of rework at tender time.

• Validate ship-from/ship-to: address, contact, receiving hours, appointment requirements, accessorial constraints (liftgate, inside delivery, limited access).
• Validate item master: unit weight, case dimensions, cases per pallet, stackability, temperature range, hazmat attributes, value/insurance needs.
• Validate service constraints: must-deliver-by date/time, customer routing guide requirements, delivery appointment lead time.

Practical check: If any SKU lacks weight or dimensions, you cannot reliably calculate cube utilization or equipment fit. Flag it immediately to the owning team (often sales or master data).

Step 2: Consolidate Orders into Shipments

Order consolidation groups compatible orders into a single shipment to reduce cost and improve utilization while still meeting delivery requirements.

• Consolidate by lane: same origin, same destination (or compatible multi-stop route), similar delivery windows.
• Consolidate by compatibility: temperature bands, hazmat segregation rules, odor/contamination risk (chemicals vs food), high-value security constraints.
• Consolidate by handling unit: palletized with palletized; floor-loaded with floor-loaded; avoid mixing if it creates dock inefficiency.
• Consolidate by time: cutoff times for picking/packing and pickup appointment availability.

Example: Three orders to the same DC due tomorrow: A (ambient, 8 pallets), B (ambient, 4 pallets), C (hazmat paint, 2 pallets). A and B can consolidate into one 12-pallet shipment. C may require segregation, placarding, and different documentation; it might ship separately or only with compatible hazmat.

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Step 3: Plan Pickup Scheduling and Dock Readiness

Pickup scheduling aligns warehouse completion time with carrier arrival time and dock capacity.

• Determine ship-ready time: when pallets are wrapped, labeled, staged, and paperwork is ready.
• Confirm pickup window: shipper hours, carrier availability, appointment requirements.
• Check dock constraints: number of doors, live load vs drop trailer, forklift availability, staging space.
• Set internal cutoffs: e.g., “orders released to warehouse by 10:00, staged by 14:00, pickup 15:00–17:00.”

Practical step: Build a simple “dock plan” list for the day: shipment ID, door assignment, target ready time, target pickup time, and special notes (reefer pre-cool, hazmat check, seal required).

Step 4: Confirm Packaging and Handling Readiness

Packaging readiness ensures the shipment can be safely handled, stacked, and transported without damage or compliance issues.

• Packaging type: cases, totes, drums, IBCs, bundles, coils, crates.
• Pallet quality: standard footprint (e.g., 48x40), no broken boards, correct entry type for forklifts.
• Unitization: stretch wrap, corner boards, banding, anti-slip sheets.
• Stackability: max stack height, crush limits, “do not stack” flags.
• Labeling: ship labels, handling labels (this side up), hazmat marks/labels, temperature indicators if used.

Example: If a product is “non-stackable” and you planned a double-stack pallet pattern, your cube plan will fail in the trailer. Mark non-stackable SKUs early so load building uses single-stack assumptions.

Step 5: Prepare Documentation Requirements

Documentation must be ready before tendering because carriers often require accurate commodity and handling details to accept the load and price it correctly.

• Bill of Lading (BOL): shipper/consignee, ship date, PO/reference numbers, pallet/carton counts, weight, freight terms, special instructions.
• Packing list: item-level detail for receiving.
• Hazardous documentation: shipping papers, emergency contact, UN numbers, proper shipping names, packing group, quantity, placards as required.
• Temperature instructions: setpoint, acceptable range, pre-cool requirement, “do not freeze” notes.
• Customs/export docs (if applicable): commercial invoice, AES/ITN, certificates.
• Security/chain-of-custody: seal numbers, high-value protocols, photo documentation if required.

Practical step: Use a “doc readiness gate”: do not tender until BOL data fields are complete and any hazmat/temperature requirements are validated by a qualified reviewer.

Step 6: Build the Load (Cube, Weight, Pattern, Equipment Fit)

Load building translates shipment quantities into a physical plan that fits the equipment and protects product integrity. Even when software optimizes loads, planners should understand the fundamentals to catch errors.

Load Building Concepts You Must Apply

1) Cube Utilization (Space Use)

Cube utilization compares the shipment’s volume to the usable volume of the equipment. It helps prevent “shipping air” and identifies when you will cube out before you weigh out.

• Shipment cube = sum of (handling unit length × width × height).
• Usable trailer cube is less than theoretical due to door clearance, pallet overhang, load bars, and non-stackable freight.

Example calculation: 20 pallets, each 48x40x60 in. Per pallet cube = 48×40×60 = 115,200 in³ = 66.7 ft³. Total = 1,334 ft³. If a 53' dry van usable cube is roughly ~3,500 ft³, cube utilization is ~38% (but weight or non-stackability may still be the limiting factor).

2) Weight Distribution (Axle and Stability)

Weight distribution affects safety, legal axle limits, and damage risk.

• Heavier pallets should generally be placed over/near the trailer axles and forward of the rear doors, avoiding extreme rear-heavy loading.
• Balance left-to-right to reduce roll risk and prevent uneven tire/axle loads.
• Prevent load shift with proper blocking/bracing, load bars, straps, and tight loading patterns.

Practical rule: If you have a few very heavy pallets (e.g., drums), do not load them all at the tail. Mix them into the middle of the trailer and secure them.

3) Pallet Patterns and Stacking Logic

Pallet pattern choices drive how many pallets fit and how stable the load is.

• Straight load: pallets aligned uniformly; simplest and fastest at the dock.
• Pinwheel: alternating orientation to reduce gaps and improve stability for certain pallet sizes.
• Double-stack: only when packaging and product allow; requires height clearance and verified crush strength.
• Mixed handling units: plan zones (e.g., pallets first, then floor-loaded cartons) to avoid rehandling.

Example: A 53' van often fits 26 standard 48x40 pallets in a straight load (single stack). If you have 30 pallets, you either need a second trailer, a different pattern (if feasible), or a different equipment type (e.g., longer container not applicable domestically, or consider double-stack only if allowed).

4) Equipment Choice for the Physical Load

Choose equipment based on the freight’s physical needs and loading method, not just distance.

Practical step: If the warehouse can only load dock-high and the freight is palletized, avoid planning a flatbed unless there is a specific requirement (oversize, top-loading, or customer mandate).

How Shipment Characteristics Drive Planning Decisions

Density (Cube vs Weight Constraint)

Density helps predict whether you will “cube out” (run out of space) or “weigh out” (hit weight limits first).

• Low density (bulky, light): focus on cube utilization, stacking rules, and trailer length.
• High density (heavy, compact): focus on axle distribution, floor loading limits, and maximum gross weight.

Practical indicator: If pallets are tall but light, plan for cube constraints and consider double-stack only if packaging allows. If pallets are short but very heavy, plan for weight constraints and distribute carefully.

NMFC Class and Handling Units (LTL-Relevant Details)

When freight moves in environments where classification and handling units matter, you must capture accurate commodity descriptors and how the freight is packaged.

• NMFC class drivers: density, stowability, handling, liability.
• Handling units: pallets, crates, drums, loose cartons; each affects handling time and damage risk.
• Accuracy matters: incorrect class or handling unit count can trigger reclassification, billing adjustments, and tender rejection.

Practical step: For each shipment, record both total pieces and handling units (e.g., 120 cartons on 6 pallets). Carriers plan capacity and pricing from handling units, not just piece count.

Special Handling and Fragility

• Fragile: avoid heavy-on-light stacking, add dunnage, consider “do not stack.”
• Liquid: check leak containment, upright orientation, drum securement.
• Odd-shaped: may require flatbed or special blocking/bracing in a van/container.

Temperature Control

• Define requirement: frozen, chilled, controlled ambient; specify setpoint and acceptable range.
• Operational checks: pre-cool trailer, verify reefer is running, ensure airflow (do not block bulkhead), confirm temperature recording if required.
• Loading discipline: minimize door-open time; stage product to load quickly.

Hazardous Materials

• Classification: UN number, proper shipping name, hazard class, packing group.
• Segregation: incompatible hazmat cannot be loaded together; check internal rules and regulatory requirements.
• Packaging and marks: approved packaging, labels, placards, shipping papers.

Practical step: Add a mandatory hazmat review step before tender: a qualified person confirms the shipping description and that the planned equipment and routing are allowed.

High-Value Freight

• Security requirements: seals, team driver, no-stop zones, geofencing, check calls.
• Information control: limit who sees shipment details; avoid broadcasting value in notes.
• Insurance: confirm declared value and coverage requirements before tendering.

Tendering the Load (Making It Acceptable to a Carrier)

What “Tender-Ready” Means

A tender-ready load has complete, accurate, and consistent data across order, warehouse plan, and transportation plan. Carriers should be able to accept without follow-up questions.

Tendering Steps

• 1) Final shipment build: confirm pallet count, total weight, cube, and special requirements.
• 2) Confirm schedule: pickup appointment/time window, delivery appointment needs, ship-ready time.
• 3) Confirm equipment and accessorials: reefer setpoint, liftgate, driver assist, inside delivery, tarp, etc.
• 4) Send tender: transmit shipment details (via TMS/EDI/email) with required references and instructions.
• 5) Manage acceptance: track accept/decline; if declined, correct data issues or move to next option per your internal playbook.
• 6) Confirm and release: once accepted, issue pickup number/confirmation, share dock details, and release warehouse to load.

Practical step: Use a “tender checklist” before sending: addresses, dates/times, pallet count, weight, dimensions/cube, hazmat/temp/high-value flags, references, special instructions.

Shipment Planning Template (Data Fields + Team Handoffs)

Use the template below as a standard planning record. It can live in a TMS, a shared form, or a spreadsheet, but the fields and handoffs should remain consistent.

A) Core Shipment Identification

• Shipment ID
• Order IDs / Customer PO(s)
• Ship-from: name, address, dock contact, hours
• Ship-to: name, address, receiving contact, hours
• Incoterms / Freight terms (if applicable)
• Required delivery date/time

B) Commodity and Handling Data (Required for Build + Tender)

• Item/SKU list
• Commodity description (shipper-friendly, compliant)
• NMFC / class (if applicable)
• Handling units: pallets/crates/drums, count by type
• Pieces: cartons/cases count
• Dimensions: per handling unit (L×W×H)
• Weight: per handling unit and total
• Stackability: yes/no, max stack height
• Special handling: fragile, keep upright, do not clamp, etc.

C) Compliance and Risk Flags

• Hazmat: yes/no; UN#, proper shipping name, hazard class, packing group, quantity, emergency contact
• Temperature control: ambient/chilled/frozen; setpoint; acceptable range; pre-cool required (Y/N)
• High-value: declared value; security requirements; seal required (Y/N)
• Food-grade/clean trailer requirement (Y/N)

D) Load Build Plan

• Planned equipment: van/reefer/flatbed/container; size
• Planned pallet pattern: straight/pinwheel/double-stack; notes
• Estimated cube utilization: %
• Estimated weight utilization: % of max payload
• Weight distribution notes: heavy pallets placement, securement plan
• Securement needs: straps/load bars/corner boards/tarp

E) Scheduling and Appointments

• Ship-ready timestamp
• Pickup window and appointment confirmation number (if applicable)
• Delivery appointment required (Y/N); requested window
• Warehouse door/staging location
• Special dock instructions: check-in process, PPE, trailer drop rules

F) Documentation Checklist

• BOL prepared (Y/N)
• Packing list prepared (Y/N)
• Hazmat papers prepared (Y/N/NA)
• Temperature instructions attached (Y/N/NA)
• Seal number recorded (Y/N/NA)

G) Tender Details

• Tender sent to: carrier name
• Tender method: TMS/EDI/email/portal
• Tender timestamp
• Acceptance status: accepted/declined/pending
• Carrier confirmation #
• Driver instructions: pickup reference, check-in, contact

Handoffs Between Sales, Warehouse, and Transportation (Who Owns What)

Practical Mini-Scenario: Turning Orders into a Tender-Ready Load

Inputs: 14 pallets ambient snacks (stackable), 6 pallets bottled juice (heavy, liquid), delivery due in 36 hours, dock-high pickup, no hazmat, moderate value.

• Consolidation: same destination and due date → one shipment (20 pallets).
• Load build: choose dry van; place heavier juice pallets centered over axles; snacks around them; confirm no overhang and stable stacking.
• Cube/weight: verify 20 pallets fit single-stack; confirm total weight below payload and balanced.
• Scheduling: warehouse stages by 13:00; pickup window 14:00–16:00; confirm dock door assignment.
• Docs: BOL includes 20 pallets, total weight, PO references; packing list attached.
• Tender: send complete tender with pallet count, weight, pickup window, and any accessorials; track acceptance and issue confirmation to warehouse.