Inventory glossary
What is Order consolidation?
Order consolidation is the practice of combining multiple separate orders into one larger order, usually to one supplier, so they ship or get invoiced together.
For a small Shopify store, order consolidation saves money and time. Instead of placing three small orders to the same supplier in a month, each with its own shipping charge and paperwork, you wait a few days and combine them into one purchase order. This can also help you hit a minimum order quantity or qualify for a volume discount you would otherwise miss.
Use it when you notice you are about to send a second order to a supplier you already ordered from recently. Check what is still needed, add it to the open order if it has not shipped yet, and send one combined purchase order instead of two.
Example
A candle store needs 50 jars from its glass supplier this week and realizes it will likely need another 40 jars next week based on sales trends. Instead of placing two orders, the owner combines them into one order for 90 jars. This hits the supplier's 80-unit minimum order quantity and avoids a second freight charge of 35 dollars.
Common mistakes
- Waiting too long to consolidate and running out of stock before the combined order ships.
- Combining orders from different suppliers by mistake, which does not save shipping cost.
- Ignoring case pack sizes when combining, leading to odd leftover quantities.
Order consolidation and SteadyShelf
SteadyShelf shows upcoming order-by dates per SKU and supplier, which makes it easier to see when two separate reorders could be merged into one purchase order before either becomes urgent.
SteadyShelf is launching on the Shopify App Store. Join early access to get the install link first.
Related terms
Purchase order · Minimum order quantity · Case pack · Volume discount · Lead time
FAQ
Does order consolidation delay getting stock?
It can delay the earliest item slightly, since you wait to combine it with others. This is only worth it if the delay does not risk a stockout and the savings on shipping or discounts are worth more than the wait.
Can you consolidate orders across different suppliers?
Not directly. Each supplier needs its own purchase order. You can only consolidate multiple orders going to the same supplier into one shipment or invoice.
Let SteadyShelf do this math for every SKU
Order-by dates per supplier, seasonal forecasts and draft POs for your Shopify store. $29/month after a 30-day free trial.
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