Freight order

Freight order

Definition:

A freight order is a logistical order for carrying out a transport of goods. It is created either by the shipper or a freight forwarder and contains all relevant information for planning, carrying out and billing a transport.
The freight order defines the transport conditions, parties involved, loading and unloading points, time windows, goods information, costs, and documentation and handling requirements. It serves as a central information base for dispatchers, drivers and transport partners.

Typical contents of a freight order include:

  • sender, recipient, freight forwarder, driver
  • Loading and delivery address, time frame, contact points
  • Vehicle and equipment requirements
  • Description of goods, weight, dimensions, pallets
  • Loading and unloading instructions
  • Transport costs and conditions
  • Required documents (e.g. CMR, dangerous goods, ECD)

Digital transportation management systems (TMS)
Freight orders are increasingly being created and managed digitally in TMS systems. As a result, status reports, documents, costs, driver and equipment data can be automatically processed and exchanged in real time.

Dangerous goods and compliance requirements
In the case of dangerous goods, food or chemical transport, additional information such as ADR information, cleaning obligations, instruction certificates or safety equipment may be included in the freight order.

Sources/further links:
Transport order definition — SAP:
Transport Request | SAP Help Portal

SAP Freight Order/Freight Order Process Description: Freight Order | SAP Help Portal

Freight order challenges:

Incomplete or incorrect information in the freight order
If essential information such as time frames, document requirements, safety requirements or equipment specifications is missing, there are queries, delays, errors or safety risks — particularly in chemical logistics.
Sources/further links:
ECTA — Best Practices for Transport Execution:
Guidelines | ECTA - European Chemical Transport Association

Media breaks & manual coordination between shippers, carriers & drivers
Many freight orders are coordinated in various systems or via e-mail, PDF and telephone. This leads to double entry, errors, a lack of transparency and higher coordination costs.
Sources/further links:
McKinsey — Digital Logistics Collaboration Challenges:
Travel, Logistics, and Infrastructure: Firms Are Finding Opportunities in Technology, Changing Consumer Demographics, and Global Trade | McKinsey

Loady's solution:

Clear, reliable location and product requirements for the freight order
Loady provides verified data on loading and unloading conditions, access requirements, PPE requirements, document requirements and equipment specifications. This information can be included in the freight order and reduces queries and errors.

Digital provision of relevant transport information for drivers & freight forwarders
Before the trip starts, transport partners have access to all necessary location and safety information in several languages via a link or QR code — suitable for the last-mile execution of the freight order.

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