Partial Delivery Workflow

The Partial Delivery Workflow handles situations where a sales order must be delivered in multiple shipments due to stock availability, customer request, or logistical constraints. This workflow ensures proper tracking, invoicing, and payment collection across multiple deliveries.

Workflow Overview

Sales Order Creation → Identify Partial Delivery Need →
First Delivery (Available Items) → Partial Invoice & Payment →
Stock Arrival/Preparation → Second Delivery → Final Invoice & Payment →
Order Completion

When to Use This Workflow

Use Partial Delivery Workflow when:

• Stock shortage: Some items available, others out of stock or backordered
• Customer request: Customer wants available items immediately, will wait for rest
• Large orders: Phased delivery over multiple trips due to size/volume
• Progressive availability: Items become available at different times
• Mixed products: Some ready-stock, others made-to-order
• Delivery constraints: Vehicle capacity limitations
• Installation scheduling: Different items require different installation dates

Common Partial Delivery Scenarios

Scenario 1: Stock Shortage at Order Time

Situation:

• Customer orders 5 items
• 3 items in stock, 2 out of stock
• Expected restock in 1 week

Options:

• A: Deliver 3 now, 2 when restocked (Partial Delivery)
• B: Wait 1 week, deliver all 5 together (Standard Delivery)

Choose Partial Delivery If:

• Customer needs some items urgently
• Customer willing to accept split delivery
• Uncertain restock date for remaining items
• Customer satisfaction improved by partial delivery

Scenario 2: Customer-Requested Split Delivery

Situation:

• Customer has multiple locations
• Wants items delivered to different addresses
• Or wants delivery spread over time

Example:

• Office furniture order
• Deliver desks this week (office ready)
• Deliver chairs next week (still renovating)

Scenario 3: Large Order Vehicle Capacity

Situation:

• Full order too large for single delivery vehicle
• Requires multiple trips

Example:

• Restaurant equipment order
• First trip: Kitchen equipment
• Second trip: Dining furniture

Scenario 4: Progressive Installation

Situation:

• Items require sequential installation
• Cannot install all at once

Example:

• Home appliance package
• Day 1: Deliver and install built-in oven
• Day 2: Deliver and install cooktop (after oven installed)

Detailed Process Steps

Step 1: Create Sales Order (Same as Standard)

Responsible: Sales Admin

1. Follow Standard Sales Workflow Step 1-2
2. Create complete sales order with ALL items customer wants
3. Collect appropriate deposit:
   • Option A: Deposit on full order value
   • Option B: Deposit on first delivery only
   • Option C: Proportional deposit (e.g., 30% of each delivery)
4. Note in Sales Order:
   • “Partial Delivery Expected”
   • Reason for partial delivery
   • Expected timeline for complete delivery

Step 2: Determine First Delivery Items

Responsible: Sales Admin + Warehouse

Identify Available Stock:

1. Check Stock Availability:

   • Review each item in sales order
   • Check current stock levels
   • Identify:
     • ✅ Available now (can deliver immediately)
     • ⏳ Backordered (expected date: ___)
     • 🚫 Out of stock (no expected date)

2. Create Delivery Plan:

   • Delivery 1: Items available now
   • Delivery 2: Items expected [Date]
   • Delivery 3: Remaining items (if needed)

3. Communicate with Customer:

   • Explain partial delivery situation
   • Present delivery plan:
     • “We can deliver [Items A, B, C] immediately”
     • “[Items D, E] will be available on [Date]”
     • “Would you like us to proceed this way?”
   • Get customer approval
   • Document customer agreement

4. Update Sales Order:

   • Note agreed delivery schedule
   • Flag as “Partial Delivery Approved”
   • Set reminders for subsequent deliveries

Step 3: Process First Delivery

Responsible: Sales Admin, Warehouse, Driver

Create First Delivery Order:

1. Generate Partial Delivery Order:

   • From original Sales Order
   • Select items for first delivery
   • Create Delivery Order #1
   • Note: “Delivery 1 of 2” or “Partial Delivery”

2. Prepare Partial Invoice:

   • Option A: Partial Invoice (Recommended):

     • Invoice only items being delivered now
     • Example: If delivering 3 of 5 items, invoice those 3
     • Clearer for customer and accounts

   • Option B: Full Invoice with Partial Delivery Note:

     • Invoice all items in order
     • Note which items delivered today, which pending
     • Can be confusing for payment

3. Calculate Partial Payment:

   Example:

   • Total Order: $5,000
   • Deposit Paid: $1,500
   • Delivering items worth: $3,000 (60% of order)
   • Balance due for this delivery: $______

   Payment Calculation Methods:

   Method 1: Proportional:

   • Customer pays for items delivered
   • First delivery items value: $3,000
   • Less proportional deposit: $900 (30% of $3,000)
   • Balance due now: $2,100
   • Remaining deposit for 2nd delivery: $600

   Method 2: Apply All Deposit to First Delivery:

   • First delivery items value: $3,000
   • Less full deposit already paid: $1,500
   • Balance due now: $1,500
   • Second delivery: Full balance due

   Method 3: Customer Pays Balance Only on Final Delivery:

   • Deliver first items, no additional payment
   • Collect full balance on final delivery
   • Higher risk if customer refuses final delivery

4. Execute Delivery:

   • Follow Standard Sales Workflow Steps 3-9
   • Warehouse picks items for Delivery 1
   • Generate Delivery Order and Partial Invoice
   • Load and deliver items
   • Obtain customer signature
   • Take delivery photos
   • Collect payment (if applicable)

5. Delivery Documents:

   • Delivery Order clearly marked:
     • “Delivery 1 of 2”
     • Lists only items in this delivery
     • Notes remaining items pending
   • Partial Invoice (if using):
     • Shows items delivered
     • Shows payment for these items
     • Notes remaining items to follow

Step 4: Update System After First Delivery

Responsible: Sales Admin

1. Record Partial Delivery in System:

   • Update Sales Order status: “Partially Delivered”
   • Mark delivered items as “Delivered”
   • Mark pending items as “Awaiting Stock”
   • Record delivery date for delivered items

2. Record Partial Payment:

   • If payment collected for first delivery
   • Record amount against sales order
   • Update balance due
   • Calculate remaining balance for final delivery

3. Outstanding Items Tracking:

   • List items still pending
   • Expected availability dates
   • Set reminders for follow-up
   • Monitor stock arrival

4. Customer Communication:

   • Confirm first delivery completed
   • Remind of pending items
   • Update expected delivery date for remaining items
   • Maintain customer awareness

Step 5: Prepare for Subsequent Deliveries

Responsible: Sales Admin + Warehouse

Monitor Stock for Remaining Items:

1. Track Incoming Stock:

   • Check purchase orders for backordered items
   • Monitor expected arrival dates
   • Coordinate with purchasing/suppliers
   • Update customer on any delays

2. When Stock Arrives:

   • Verify items received
   • Inspect quality
   • Update inventory system
   • Immediately notify customer:
     • “Good news! The remaining items have arrived”
     • “We can schedule delivery”
     • “When would be convenient?”

3. Schedule Second Delivery:

   • Coordinate with customer
   • Add to trip listing
   • Follow same preparation process

Step 6: Process Final Delivery

Responsible: Sales Admin, Warehouse, Driver

1. Generate Final Delivery Order:

   • Create Delivery Order for remaining items
   • Note: “Delivery 2 of 2 - Final” or “Completing Order [SO Number]”

2. Generate Final Invoice (if using partial invoices):

   • Invoice remaining items
   • Show previous delivery/payment
   • Calculate final balance due

3. Calculate Final Payment:

   • Total Order Value: $5,000
   • Previous Delivery Payment: $3,000
   • Final Balance Due: $2,000
   • Verify customer understands amount

4. Execute Final Delivery:

   • Warehouse picks remaining items
   • Load and deliver
   • Obtain customer signature
   • Take delivery photos
   • Collect final payment

5. Verify Order Completion:

   • Check with customer: “This completes your order [SO Number]. You’ve received all [X] items. Is everything satisfactory?”
   • Ensure customer agrees order is complete
   • No items missing or damaged

Step 7: Complete Sales Order

Responsible: Sales Admin

1. Update System:

   • Mark all items as “Delivered”
   • Sales Order status: “Completed”
   • All invoices: “Paid”
   • Delivery complete date recorded

2. Final Documentation:

   • File all delivery orders together
   • File all invoices together
   • Attach all payment receipts
   • All photos archived

3. Financial Reconciliation:

   • Verify total payments = Total order value
   • All partial payments recorded correctly
   • Accounts receivable updated
   • No outstanding balance

4. Customer Follow-Up:

   • Send thank you message
   • Confirm complete satisfaction
   • Provide warranty information
   • Request feedback or review

Best Practices for Partial Deliveries

Communication:

• Set Expectations Early: Tell customer about partial delivery before first delivery
• Keep Customer Updated: Proactive communication about pending items
• Clear Documentation: Every document clearly notes “Partial” or “X of Y”
• Confirm Completion: Explicitly confirm when order is complete

Documentation:

• Clear Labeling: All DOs and invoices labeled clearly as partial
• Tracking: Maintain clear tracking of what’s delivered and what’s pending
• Photos: Take photos of each delivery
• System Notes: Detailed notes in system about partial delivery plan

Financial:

• Clear Payment Terms: Customer understands payment schedule upfront
• Track Partial Payments: System accurately tracks multiple payments against one order
• Balance Transparency: Customer always knows remaining balance
• Deposit Management: Clear how deposit applies to multiple deliveries

Operations:

• Minimize Partial Deliveries: Only use when necessary
• Batch Items: Try to deliver in as few trips as possible
• Coordinate Scheduling: Schedule subsequent deliveries efficiently
• Complete Quickly: Don’t let partial deliveries drag on for months

Special Cases

Case 1: Three or More Deliveries

When: Very large order, items available at different times

Process:

• Same as above, repeated for each delivery
• Label: “Delivery 1 of 3”, “Delivery 2 of 3”, “Delivery 3 of 3 - Final”
• Track carefully - complexity increases with each additional delivery
• Consider batching deliveries to reduce trips

Case 2: Customer Cancels Remaining Items

Scenario: After first delivery, customer no longer wants remaining items

Process:

• Confirm cancellation in writing/email
• Calculate refund if applicable:
  • Total order value: $5,000
  • Delivered: $3,000
  • Deposit paid: $1,500
  • Refund: $1,500 - $3,000 = -$1,500 (customer owes $1,500) OR refund if deposit exceeded delivered value
• Update sales order: “Partially Delivered, Remainder Cancelled”
• Release reserved stock for remaining items
• Process refund/collect balance as appropriate

Case 3: Different Delivery Addresses

Scenario: Same order, items go to different locations

Process:

• Create separate delivery orders for each address
• Each DO shows specific address
• May require different delivery days
• Charge delivery fees if applicable
• Track each address delivery separately
• Customer signature at each location

Case 4: Partial Delivery with Installation

Scenario: Some items need installation, delivered at different times

Process:

• Schedule installation for each delivery as needed
• Day 1: Deliver + Install items A, B
• Day 2: Deliver + Install items C, D
• Coordinate installation team for each delivery
• Customer signs completion after each installation

Invoicing Options Comparison

Option A: Multiple Partial Invoices (Recommended)

Structure:

• Invoice 1: Items in first delivery
• Invoice 2: Items in second delivery

Pros:

• Clearer for customer (pays for what received)
• Easier accounting (matches delivery)
• Less confusion
• Better payment tracking

Cons:

• Multiple invoice numbers for one order
• More administrative work

Option B: Single Full Invoice with Partial Delivery Notes

Structure:

• One invoice for all items
• Notes indicate which items delivered when
• Payment schedule noted

Pros:

• Single invoice for entire order
• Less paperwork

Cons:

• Can confuse customer (invoiced for items not yet received)
• Payment allocation complex
• Customer may dispute paying for undelivered items

Recommendation: Use Option A (Multiple Partial Invoices) for clarity and customer satisfaction.

Common Issues and Solutions

Issue 1: Customer Refuses to Pay Balance on Final Delivery

Scenario: Customer already has most items, refuses to pay for final delivery.

Prevention:

• Collect adequate deposit upfront
• Consider collecting balance for each delivery as it arrives
• Don’t over-deliver on first shipment relative to payment

Solution:

• Politely but firmly explain payment terms
• Show signed sales order with total amount
• If necessary, take back undelivered items
• Legal action for breach of contract (last resort)

Issue 2: Indefinite Delay on Remaining Items

Scenario: Items for second delivery never arrive or long delayed.

Solution:

• Keep customer informed of delays
• Offer alternatives:
  • Substitute similar products
  • Partial refund for undelivered items
  • Store credit for future purchases
• Don’t let order hang indefinitely (set max 90 days)
• Close order with partial completion if necessary

Issue 3: Customer Loses Track of What’s Delivered

Scenario: Customer calls asking about items already delivered or disputes items pending.

Prevention:

• Clear delivery documentation
• Provide customer with itemized list of delivered vs pending
• Photos of each delivery

Solution:

• Reference delivery orders with customer signatures
• Show delivery photos
• Email summary after each delivery listing what’s complete and what’s pending

Issue 4: Payment Allocation Confusion

Scenario: Customer made payments but unclear which delivery they cover.

Prevention:

• Issue receipts clearly referencing delivery
• Maintain payment schedule document
• System tracks payments per delivery

Solution:

• Review all payment receipts
• Match dates with deliveries
• Reconcile with customer together
• Create clear payment history document

Partial Delivery vs. Backorder

Partial Delivery:

• Customer receives some items now
• Remaining items delivered later
• Customer aware and agrees to split delivery
• Active process

Backorder:

• Entire order on hold until all items available
• Customer waits for complete order
• Deliver everything together when ready
• Passive waiting

When to Choose:

• Partial Delivery: Customer wants available items immediately
• Backorder: Customer prefers to wait for complete delivery

Success Metrics

Partial Delivery Rate:

• % of orders requiring partial delivery: Track trend (lower is better)
• Target: < 10% of orders

Completion Time:

• Average days from first to final delivery: Target < 14 days
• Orders taking > 30 days: Target < 2%

Customer Satisfaction:

• Customer complaints about partial delivery: Target < 1%
• Customer acceptance rate when offered partial delivery: Target > 80%

Financial:

• Payment collection rate on partial deliveries: Target 100%
• Average deposit vs order value: Target > 30%

Related Workflows

• Standard Sales Workflow - Complete order delivery process
• Credit Sales Workflow - Partial delivery on credit terms
• Returns & Exchanges - If partial delivery items need return

Partial deliveries balance customer service with operational reality. Handle professionally with clear communication and documentation to maintain customer satisfaction despite split shipments.