Mechanics the engine is opinionated about · P&L line 21
Split shipment
One order that leaves in more than one parcel.
Where it lives in nouz
The P&L, line 21, priced per parcel.
A split shipment is one order that ships in two or more parcels, because items sit in different locations, one is back-ordered or a bulky item travels separately. Each parcel carries its own label, picking and packaging, so a split order costs a multiple of what a per-order average suggests.
This is why nouz prices logistics per parcel rather than per order. A store shipping 1,08 parcels per order is eight percent above its own per-order packaging cost before anything goes wrong, and the stores worst affected are exactly the ones whose warehouse reports never surface it.
The customer usually experiences it as a problem too: two deliveries, two chances for something to go missing, and a return process that has to be explained twice. So the cost is rarely limited to the second label.
Reducing splits is mostly a stock and picking question. Holding fast-moving items in one location, and holding enough of them, removes most splits, which is one of the quieter arguments for getting cover and reorder points right.