Topic 1, Sub-Topic 1
In Progress

Meaning of Key Terms in Dispatch of Goods

Meaning of Key Terms in Dispatch of Goods


  • Shipping is the final warehouse process and the start of the journey of goods from the warehouse to the customer. Shipping is considered successful only if the right order is sorted and loaded, is dispatched to the right customer, travels through the right transit mode, and is delivered safely and on time.


  • Order picking is when the products listed in an order are retrieved from their respective storage arrears in warehouses.


  • Packing is generally the first step after picking and consolidation, and it defines the methods by which items are individually wrapped and protected for subsequent processing. Typically, bubble-wrap, tissue paper, and other protective materials are used to pack individual items.


  • Packaging, on the other hand, is the process of placing in the individually packed items into a larger unit container, possibly supplemented with foam peanuts or other protective materials. This packaged container is designed to withstand rough handling, including accidental drops and other forms of mishandling.

Labelling and Marking

  • Marking and labelling are the practical ways to differentiate packed cargo in order to fulfil some regulations applied in the freight logistics chain. It aims at safe arrival to destination, speedy identification, compliance with official regulations, prevention of unnecessary damage, compliance with customs and other regulatory bodies. 


  • There are two types of transportation/shipment consolidation: inbound logistics consolidation system and outbound logistics consolidation system.

Inbound Logistics Consolidation System

  • With the inbound logistics consolidation system, the consolidating warehouse receives and consolidates materials from a number of suppliers to a specific plant on a single transportation shipment.

Outbound Logistics Consolidation System

  • With the outbound logistics consolidation system, materials from a number of manufacturing plants are received by the consolidating warehouses, sorted according to their destinations and then consolidated to a specific destination market.

Marking Practice

The five essential aims of marking packages are;

  • Safe arrival at destination
  • Speed identification
  • Compliance with official regulations
  • Prevention of unnecessary damage
  • Compliance with customers or other contractual requirements

Essential details on labels

  • Name and address of consignor
  • Name and address of consignee
  • Warnings/instructions, e.g. hazardous goods
  • Product information/description/codes
  • Protective service symbol, e.g. temperature, air, light, moisture, exposure, etc.
  • Special handling symbols
  • Pictorial labels should be exhibited within a border and with contrasting colours.

Effects of poor marking and labelling

  • Reduced efficiency/more time during order selection/sorting.
  • Possible errors of delivery due to identifications problems.
  • Customer dissatisfaction arising from above errors.
  • Rejection in importing country
  • Advertisement should not obscure or shadow package identification codes. Avoid complicated markings that are difficult to read or understand or recall otherwise the purpose will not be achieved.
  • Product identification systems should be legible in warehouse storage environment and use within number of letter and number combinations necessary for identification otherwise the product/package may be misallocated.