Delivery Order

Delivery Order Definition

The delivery order definition is the document which details the delivery information of an item, is very important in distribution. A delivery order is an important document in 2 ways: it has full details of how the delivery will take place and, in some cases, warrants the release of a shipment from port or other authorities.

Delivery Order Explanation

delivery order, explained as the full details and information regarding a delivery, is important for 3rd party deliverers. A delivery order contract includes the complete details of a delivery. It is generally an official document which is placed on company letterhead.

When having an item delivered, the delivery order outlines who it will be shipped to, how it will be shipped, special needs for the delivery, and when to release the delivery. This information is important because delivery is one of the most important aspects to the sales process. This is the difference between a delivery order vs task order: with a delivery order the only task is delivery of the product.

Additionally, when having an item shipped out of port, a delivery order provides even more value. The delivery order includes all of the above information. In this situation, send a delivery order when port authorities should release an item for shipment. It shows that shipment charges have been paid for. If the item stays at port and shipment is not paid for, the item will eventually be claimed for the expenses of the shipper and sold as an asset.

A delivery order is simply proof of the delivery details. These days, many send a delivery order, often through email, to the shipper. There are also other delivery methods which place delivery order online, directly in the database of the shipper. Technology has removed the paper order of the past.

Delivery Order Example

Joe is purchasing a product from China. He will resell this exported item in the United States. Due to this fact, he will be working closely with a 3rd party shipper.

He has made all arrangements with the seller. Everything seems to be in order. Now, Joe must pay for shipping. He does this with the excitement that he will make a good amount of money when the project is finished.

Joe pays for shipping and receives a copy of the delivery order. He also sends a copy to the port authorities. Once they receive it, they release the shipment and send it to Joe.

A discrepancy occurs with the delivery order number; the port authorities did not receive it. Luckily, Joe did receive a copy. In order to clear up the issue Joe will send a copy to the port authorities.

Once the port authorities receive the delivery order they release the item for shipment. Receiving the notice that this has happened puts Joe’s mind at easy. He does not need any more issues with this product. He is ready to sell it and is wasting time and money. With this, his business operations can continue.

delivery order definition

See Also:
Economic Order Quantity (EOQ)
Sales Order
Business Intelligence and Finance
Mergers and Acquisitions (M&A)

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