Outbound shipping refers to the transport that takes place when goods are shipped from a company to a customer – whether B2B or B2C. In other words, it’s the part of the logistics process where fully packed orders leave the warehouse and are transported to the recipient. Outbound shipping is closely tied to both inventory management and order management, as it requires precise coordination between what is in stock, what has been sold, and how it is packed and shipped.
Rackbeat July 25, 2025
The outbound shipping process typically starts with a customer order created in the company’s order system. This could be a webshop order, a sales order from a field representative, or a recurring B2B purchase. Once the order is received and approved, the warehouse staff must pick the relevant items, pack them properly, and prepare them for shipping – all as efficiently and error-free as possible.
This is where a Warehouse Management System (WMS) becomes essential. Although a WMS doesn’t handle the actual transport – i.e. the physical shipment through carriers – it plays a key role in ensuring that orders are ready for dispatch. The system helps manage and optimize the entire internal process, from the moment the order is placed to when the package is ready for pickup.
How does it work in practice?
1. Order creation – either manually, through webshop integration, or a sales integration.
2. Automatic picking order – Systems like Rackbeat generate a digital picking list accessible via a mobile device or barcode scanner.
3. Items are picked and scanned – With inventory management hardware such as handheld scanners, the risk of picking errors is significantly reduced. The system can also suggest the most efficient route through the warehouse based on item locations.
4. Packing and shipping preparation – Once all items are picked and approved, they’re packed according to company guidelines. Packing slips can be printed, and the order can be marked as ready for shipping.
5. Order status is automatically updated – The customer can be notified that their order is on its way, and the stock levels are updated in real time.
By using digital workflows, you save time, reduce errors, and gain a constant overview of which orders have been processed and which are still pending. This makes it easier to prioritize urgent cases, plan staff time, and ensure a consistent quality in deliveries.
When a company has control over its outbound shipping processes, it gains a number of tangible advantages:
Faster order processing: When picking and packing are handled efficiently and digitally, orders can often be shipped the same day.
Fewer picking and shipping errors: Scanning and location-based inventory management ensure that the correct items are sent – reducing returns and saving time.
Increased customer satisfaction: Fast and accurate deliveries build trust and strong customer relationships – increasing the likelihood of repeat purchases.
Fewer manual tasks and reduced admin: Automated workflows greatly reduce the need for manual checks and data entry.
Better scalability: When shipping and order flows are systematized, companies can handle higher order volumes without increasing staff or complexity.
In short: Efficient outbound shipping isn’t just a logistics advantage – it’s a competitive edge.
Outbound shipping is a critical part of the supply chain – and it both begins and ends in the warehouse. Without control over which items need to be shipped, when they need to be shipped, and how they should be packed, a business risks delays, delivery errors, and unhappy customers. That’s why both inventory management and order management play essential roles.
With a digital inventory management system, you gain a complete overview of which items are ready for dispatch, where they are located in the warehouse, and how the picking should be executed. This enables a smoother flow that makes outbound shipping more manageable and efficient – even though the actual freight handling typically lies outside the inventory system’s scope.
Outbound shipping is just one gear in the larger machine that is effective inventory and order management. At Rackbeat, we’re passionate about helping companies get the most out of their warehouse – through smart systems and practical advice for daily operations.
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