Advice of Shipment

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What is an Advice of Shipment?

An Advice of Shipment is a notice sent by the seller to inform the buyer that goods have been shipped. This notification provides critical information, including the dispatch date, the carrier used, and, likely, an estimate of the delivery time.

Buyers need this information to arrange for receiving the goods, such as planning unloading resources or ensuring someone is available to accept delivery.
 

Key Components of an Advice of Shipment

Several elements make up an effective Advice of Shipment, which include:

  • Date of Shipment: Knowing when the goods were sent helps in tracking and estimating the arrival time.
  • Carrier and Mode of Transport: Details about the shipping company and whether goods are transported by air, sea, or land can affect delivery and insurance matters.
  • Tracking Number: This allows the buyer to monitor the shipment's progress in real time, reducing anxiety about its status.
  • Estimated Delivery Time: Providing a delivery window allows recipients to plan their operations accordingly.

 

Benefits for Both Parties

For sellers, issuing an Advice of Shipment fosters trust by keeping the buyer informed, reducing the risk of claims of dishonesty. It also serves as a record of the shipping process, which can be used in future dispute resolutions.

For buyers, receiving this notice ensures preparedness and aids in inventory planning. They can keep a better track of incoming goods, facilitating smoother operations and minimise disruptions.
 

Steps for Creating an Effective Advice of Shipment

To craft a comprehensive Advice of Shipment, ensure all pertinent details are included. Here’s a step-by-step guide:

  1. Collect all Shipment Details: Gather information from your logistics team, including dates, carrier details, and tracking numbers.
  2. Utilise a Standard Format: Use a consistent template to avoid missing critical information. This not only ensures clarity but also efficiency.
  3. Send Timely Notifications: Dispatch the notice promptly after shipping. Delayed notifications can lead to complications at the receiving end.
  4. Double-Check Accuracy: Mistakes in shipment advice can lead to confusion and mistrust. Ensure all data included is correct before sending.