Glossary
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Example H2
Supply Chain Glossary
Trade lane
Transit time
Transloading
Transportation Management System (TMS)
Transportation lead time
Transshipment
Twenty-foot Equivalent Unit (TEU)
Ultra Large Container Vessels (ULCVs)
Vendor Managed Inventory (VMI)
Verified Gross Mass (VGM)
Vessel
Vessel Sharing Agreements (VSA)
Vessel bunching
Vessel call sign
Vessel omit
Vessel rotation
Vessel schedule
Voyage
Warehouse utilization
Work order
Yard management
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Exception

What is a shipping exception?

A shipping exception refers to any unexpected event or issue that disrupts the normal flow of a shipment, causing a delay or deviation from the scheduled delivery. These exceptions can occur at any point in the shipping process, from pickup to final delivery. Common examples include weather delays, incorrect shipping addresses, customs holds, or damaged goods. Shipping exceptions require timely action to minimize disruptions and ensure customer satisfaction.

What causes shipping exceptions?

Shipping exceptions can be caused by a variety of factors, both within and outside of a company's control. Common causes include adverse weather conditions, incorrect or incomplete documentation, customs clearance issues, misrouted packages, equipment malfunctions, or labor strikes at ports or terminals. Human error, such as incorrect labeling or addressing, can also result in shipping exceptions. Understanding these causes allows businesses to better anticipate and mitigate disruptions in their logistics processes.

What is exception management in supply chain?

Exception management in supply chain refers to the process of identifying, addressing, and resolving issues that arise during the transportation and delivery of goods. It involves monitoring shipments in real-time to detect any deviations from the planned route or schedule and taking corrective actions quickly to minimize the impact on the supply chain. Effective exception management ensures that problems are addressed before they escalate, helping companies maintain efficient operations and meet customer expectations despite unexpected disruptions.

Best practices for managing supply chain exceptions

To effectively manage supply chain exceptions, companies should implement proactive strategies such as real-time shipment tracking, automated alerts, and contingency planning. Clear communication with stakeholders—shippers, carriers, and customers—is key to addressing exceptions promptly. Additionally, maintaining strong relationships with logistics partners, ensuring accurate documentation, and using data analytics to identify patterns in exceptions can help improve overall supply chain resilience. By adopting these best practices, businesses can reduce the impact of disruptions and maintain smooth operations.