What Is Express Order Splitting? Operation Steps and Freight Calculation Methods
As e-commerce continues to grow, efficient logistics management has become critical for businesses. One key process in shipping operations is express order splitting. This guide explains what order splitting means, how to execute it, and how freight costs are calculated to help businesses optimize their logistics strategies.
What Is Express Order Splitting?
Express order splitting refers to dividing a single customer order into multiple sub-orders based on product attributes like color, size, style, or quantity. For example, if a customer orders 3 shirts in different sizes, each size becomes a separate sub-order. This method simplifies inventory management, shipment tracking, returns, and exchanges by isolating product variations early in the process.
Step-by-Step Guide to Splitting Orders
Follow these steps to split orders effectively:
- Identify Product Attributes: Review the order to determine which attributes (e.g., color, size) require separation.
- Create Sub-Orders: Generate individual shipments for each product variation. Assign unique tracking numbers to every sub-order.
- Update Inventory: Adjust stock levels in real-time to reflect the split items and avoid overselling.
- Notify Customers: Inform customers about multiple shipments and provide separate tracking details.
How Freight Costs Are Calculated for Split Orders
Freight calculation for split orders depends on factors like weight, dimensions, destination, and courier policies. Here’s how it works:
- Per-Sub-Order Charges: Most carriers treat sub-orders as independent shipments, applying base rates and surcharges to each.
- Volumetric Weight: Carriers may charge based on package size (length × width × height) instead of actual weight if it’s more profitable.
- Bulk Discounts: Some logistics providers offer reduced rates for high-volume shippers, which can offset splitting costs.
Always compare carriers like DHL, FedEx, or SF Express to identify the most cost-effective option for split shipments.
Benefits of Order Splitting in Logistics
1. Improved Operational Efficiency
Splitting orders allows businesses to manage inventory and shipments with precision. Warehouse teams can pick, pack, and dispatch items faster by avoiding mixed-attribute batches.
2. Reduced Shipping Expenses
By optimizing sub-orders to meet carrier thresholds (e.g., weight brackets), companies can qualify for discounts. For instance, splitting a 5kg order into two 2.5kg packages might lower costs if the carrier offers better rates for sub-3kg parcels.
3. Enhanced Customer Satisfaction
Separate tracking numbers and accurate delivery timelines minimize customer confusion. Quick resolution of returns or exchanges for specific items also boosts trust.
Limitations of Express Order Splitting
While beneficial, order splitting has challenges:
- Higher Costs: Splitting may increase total freight fees due to duplicated base charges per sub-order.
- Complex Management: Tracking multiple shipments requires robust software and staff training.
- Carrier Restrictions: Some providers limit the number of sub-orders per original order or charge splitting fees.
Best Practices for Implementing Order Splitting
- Automate with Tools: Use logistics software to auto-split orders based on predefined rules (e.g., size thresholds).
- Negotiate Carrier Contracts: Discuss volume-based discounts or waived splitting fees with your courier.
- Audit Regularly: Review freight invoices to ensure charges align with quoted rates.
Conclusion
Express order splitting streamlines logistics but requires careful planning. By understanding freight policies, automating workflows, and partnering with flexible carriers, businesses can reduce costs and improve delivery accuracy. Evaluate your order patterns today to decide if splitting is right for your operations.