The modern supply chain relies on a complex network of identifiers to manage the flow of goods from origin to destination. The shipment reference number serves as an internal organizational tool, connecting the physical movement of a package to the business transaction that initiated it. This identifier provides context for all parties involved in the fulfillment process and is a fundamental element in commercial logistics.
Defining the Shipment Reference Number
The shipment reference number is an alphanumeric code created and assigned by the shipper or, in some cases, the intended receiver. Unlike the code generated by the transport company, this identifier bridges the physical package to the internal administrative records of the business. It acts as a customizable tag, allowing an organization to use established codes from its own sales or inventory management systems.
This code might correspond to a specific sales order number, an invoice number, or a unique client file within the company database. Its primary function is not to track movement but to serve as persistent, standardized business data. By embedding existing internal codes onto the shipping label, companies ensure the physical item remains tied to its financial and administrative history throughout the supply chain for accurate data reconciliation.
Purpose and Function of Reference Numbers
Reference numbers primarily streamline and automate the internal processes that accompany commercial shipping. They are integral for accurate inventory management, allowing receiving departments to quickly match incoming goods against expected shipments detailed in their purchase records. This functionality speeds up the process of booking stock into the warehouse system.
The reference number facilitates cross-referencing between different departments, ensuring consistency across sales, accounting, and fulfillment teams. It is particularly useful for billing reconciliation, enabling the easy matching of carrier invoices to the specific customer order they served. This internal auditing capability provides a clear trail of financial transparency for every shipment.
Tracking Number vs. Shipment Reference Number
The fundamental difference between the two codes lies in who assigns them and their intended purpose. A tracking number is a unique sequence generated by the carrier (such as a postal service or private courier) immediately upon the creation of the shipping label. Its sole function is to provide real-time updates on the package’s physical location as it moves through the network of sorting facilities and vehicles.
Conversely, the shipment reference number is created by the business sending or receiving the package and focuses on the transactional context. This number provides the why and what of the shipment, linking it back to the original financial agreement or order details. While a single large order might have one reference number, it could result in multiple individual packages, each receiving its own distinct tracking number.
The tracking number changes status based on physical scans at waypoints, telling the customer where the box is at any moment. The reference number remains static throughout the journey, serving as a permanent tag for business records. The tracking code is primarily for operational visibility, while the reference code is for administrative and financial organization.
Common Types of Shipment References
Purchase Order (PO) Numbers
A Purchase Order number is one of the most common forms of shipment reference, generated by the buyer when placing an order with a supplier. This number provides the supplier with a confirmed authorization to proceed with the transaction and acts as a contract identifier. When the goods ship, the supplier places the PO number on the label so the buyer’s receiving team can easily verify the incoming stock.
Bill of Lading (BOL) Numbers
The Bill of Lading number is primarily used in freight shipping, covering less-than-truckload (LTL) and full-truckload (FTL) movements. A BOL serves as a contract between the shipper and the carrier, a receipt for the goods, and a document of title. The unique number assigned to this document becomes the shipment reference, detailing the contents, destination, and terms of the carriage.
Customer Account Numbers
Some companies utilize an internal Customer Account Number as a shipment reference, especially when dealing with recurring business clients. This number directly links the shipment to the client’s established profile in the shipper’s system for immediate history retrieval and preferential billing purposes. Using the account number streamlines customer service and facilitates easier management of long-term client relationships.
How Carriers and Receivers Utilize the Reference
Once a package is in transit, the carrier uses the shipment reference number for internal auditing and financial processing. This code ensures the correct business unit or account is billed for the transportation services rendered, which is important for companies with complex shipping arrangements. The reference also allows carriers to consolidate reporting, providing clients with data linked to their internal records.
For the receiving entity, the reference number is an indispensable tool for efficient warehouse operations. Upon delivery, staff can scan the reference number and instantly match it to the pending order in their system, allowing for rapid and accurate inventory check-in. This process bypasses the need to manually cross-reference the carrier’s tracking number with purchase orders, reducing receiving errors and labor time.
Locating and Using Your Reference Number
Most often, the shipment reference number is prominently displayed on the actual shipping label, typically near the barcode or the main tracking number. If the physical label is unavailable, the number can be found within the order confirmation email or the associated invoice sent by the seller. Looking for terms like “Customer Reference,” “PO Number,” or “Order Number” will usually reveal the correct sequence.
This number provides an effective alternative method for tracking a package on a carrier’s website, especially if the tracking number is lost or unknown. Providing the reference number to a carrier’s customer service representative allows them to quickly pull up the entire shipping record, linking the inquiry directly to the original business transaction. This simplifies troubleshooting and speeds up the resolution of delivery issues.