Posted in Operations and Supply Chain Terms, Total Reads: 362
Definition: Short Shipment
A short shipment is a situation when the cargo is listed on a shipping list but not included in a shipment, or not received by the recipient. The shipping list has many synonyms. Particularly, when the measure established is less than the measure scheduled.
On the other hand, an over shipment is when the amount established is more than the amount scheduled. These can take place for a number of reasons, and the phrase can refer together to actually shipping the wrong way, or to what the receiver hearsay on delivery, which may be for an additional reason.
Major Causes of Short Shipment are as follows:
Over shipment and short shipment can both be caused by a mistake at the foundation, where the mistaken amount is shipped or the erroneous quantity is scheduled. As the terms point out, these can essentially be caused by errors in the source of the shipment. Short shipment can be reported by the receiver if some of the merchandise vanishes in transit, such as by theft or loss. Over shipment is not likely to occur due to changes in transportation, unless spurious items somehow enter the cargo or the shipping list is spoiled or changed in transportation.
Short shipments and over shipments can reason bookkeeping problems due to official procedure contradictory with realism, and need to be physically corrected.
Wrongly reporting a short shipment can be used to be responsible for a fraud, by burglary of the items actually received but reported not to have been. To put off uncovering, this generally requires keeping two sets of books or filing two incompatible sets of paperwork.
When a short shipment or over shipment is noticed habitually by receiver, but potentially by dispatcher if an error is noticed post-shipment – the other party should be informed promptly, so counteractive action can be taken. These include supplemental shipments for short shipments, recurring goods for over shipments, issuing corrected invoices if actual amount is satisfactory, etc. These can also include examination into causes, to ensure that fraud or robbery is not occurring, or to verify that a mistaken shipment actually occurred.