Differences between Shipping Company and Shipping Carrier?

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Posted on by PT-01100339-0

Hello everyone,

I'm working on P2P process which is integrated with Transportation management module and Landed cost module.

While configuring for Transportation management, there is a term "Shipping carrier". I wonder what is the difference between shipping carrier and shipping company (Vendor set up).

In Shipping carrier set up, vendor account can be blank. So, how is cost associated with transportation recorded for a specific shipping carrier if we did not declare the vendor account.

We also have two Shipping company when setting up vendor account: One is an option of Shipping type, one is the third field of last column. What do they means?

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Supply Chain Management

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Differences between Shipping Company and Shipping Carrier?

Shipping Carrier is the logistics provider, which is responsible for transportation, while a Shipping Company is the actual vendor supplying the services for financial and procurement purposes.
In case, no vendor account is specified in the Shipping Carrier setup, transportation costs are recorded without linking to a vendor. These costs are managed through transportation or landed costs but won't be tied to a specific vendor for payments.
The Shipping Type field (Shipping company, Customer Broker, Agent) defines the vendor's role in shipping. The Shipping company Field captures additional attributes specific to the vendor’s function or classification in the shipping process.