Consolidation Picking enables you to combine orders—for example, based on shipping quantity or inner quantity or outer quantity, lots, or serial number—into one consolidation shipment. This makes it very similar to Consolidation Packing. The difference is that Consolidation Packing packs the orders into shipments. Consolidation Picking does not pack any orders for shipment. It simply combines them for storage purposes or in preparation for packing later.

There are many reasons why an organization might want to build consolidations. For example, some organizations deal with hazardous goods. Different laws restrict what goods can be shipped together. Therefore, goods might be staged at a consolidation point before packing to help ensure that no more hazardous material can go onto a shipment than is legally allowed.

Alternatively, you might create a consolidation when a customer submits multiple orders. You might do this to save on delivery costs or to ensure compliance with shipping regulations.