What is an SDQ Purchase Order?

Updated 8/27/25

Efficiency often comes down to how well data is shared and utilized. That’s where SDQ (Ship Destination Quantity) purchase orders—sometimes called spreadsheet or explosion orders—prove their value. By reducing redundant data, these orders streamline communication and eliminate the need to send the same sales order header multiple times. Instead, the header is transmitted once, creating a cleaner, more efficient process. SDQ orders also simplify the management of ship quantities across multiple locations. This is made possible by the SDQ segment, which groups location numbers with their corresponding order quantities. The result is a single SDQ order that can expand into multiple warehouse shipments or outbound orders, improving shipping services and ensuring greater delivery accuracy. In this blog, we’ll break down how SDQ purchase orders work, why they matter for both buyers and suppliers, and how businesses can leverage them to strengthen fulfillment and streamline supply chain operations.

Table of Contents

• How SDQ Purchase Orders Work
• SDQ Element Details
• Use Cases and Industry Applications
• Other Types of Purchase Orders

How SDQ Purchase Orders Work

Like other purchase orders, the SDQ purchase order contains header information and detailed information. What makes SDQ purchase orders different is the presence of the SDQ segment at the detail level of the order. This SDQ segment gives specific location numbers and qty for that location.

Technical Example: SDQ Segment in Action

PO1*000000001*8*EA*27.50**UP*123456789012~

CTP**RES*89~

SDQ*EA**0002*1*0004*1*0006*1*0010*1*0025*1*0030*2*0059*1~

In the EDI example above, the buying party is ordering 8 units of UPC 123456789012. The shipping destination and breakdown of this item are defined in the SDQ segment. Locations 0002, 0004, 0006, 0010, 0025, and 0059 will each receive one unit, while location 0030 will receive two units. The SDQ segment can include as few as one location/quantity combination, or up to 10 location/quantity combinations in one segment. Additionally, multiple SDQ segments can follow a single PO1 segment, facilitating efficient warehouse shipments and outbound processing.

Practical Example: Expanding One Order Across Locations

Below is a simplified example showing how one SDQ purchase order header can expand into multiple ship-to locations using the SDQ segment.

Instead of sending three separate purchase orders (one for each store), the buyer sends a single PO with the header information once, and the SDQ segment provides the breakdown of locations and quantities.

Why this matters:

• Less duplication of data across orders

• Reduced chance of errors when distributing items

• Clear visibility for both buyers and suppliers on exactly where and how much product needs to ship

Shipping and Delivery in SDQ Orders

It is also necessary to know how to determine where the merchandise will be shipped to on an SDQ order. The first thing to check is for the presence of an N1 segment that contains a qualifier that indicates it is a ship-to location. If the header data in the SDQ order contains an N1 segment with a ship-to qualifier, this should indicate that all of the locations contained in the SDQ segments at the detail level will be shipped to the location contained in that ship field. Usually, that also indicates the ship-to location is a distribution center. It also means the shipping containers will need to contain information that identifies the ultimate location for the shipment.

This type of order is also known as a cross-dock order. Meaning they are shipped to a distribution center, but they are marked for a store as the ultimate destination. In these cases, carriers may also require details such as carton counts, dimensions, and actual weight to ensure accurate routing and billing. If the header data for the order doesn’t contain an N1 segment with a ship-to qualifier, then the location numbers in the SDQ segment should be used to determine shipment information. This may require shipping directly to the location indicated in the SDQ segment or it could also require using a routing guide that indicates where to ship goods for the ordering location that are contained in the SDQ segment.

Managing SDQ Orders

Unless you are already fortunate enough to possess a solution for handling SDQ orders, it can be a daunting challenge dealing with this type of order. One solution is to expand or explode this single order into multiple traditional orders. To accomplish this there will need to be one order created for each unique location contained in the SDQ order. The header information in the 850 will usually need to be applied to each order that is created from the SDQ order for all of the locations. Using the SDQ segment, each item needs to be added to the newly created orders that have been ordered for each specific location.

After expanding an SDQ order into multiple orders, it should then be possible to process those orders in the same manner as more traditional non-SDQ orders are processed. Ultimately, the goal is to deliver the right products in the right quantities to the right shipping destination at the right time. Achieving this goal enhances supply chain efficiency and benefits everyone from the original manufacturer to the end consignee. The SDQ order is a prime example of an innovative solution that streamlines order management, reduces shipping costs, and increases overall supply chain management efficiency, helping businesses meet customer demands while optimizing resources.

SDQ Element Details

At the heart of an SDQ purchase order is the SDQ segment itself, which defines how product quantities are allocated across multiple destinations. Understanding its key elements is essential to seeing why SDQ orders reduce redundancy and improve accuracy in the supply chain.

Location Numbers (Ship-To Codes): Each destination is assigned a location code, making it clear which warehouse, distribution center, or store will receive the goods. This eliminates confusion when orders need to be split across multiple points.

Quantities: Quantities are tied directly to each location number, ensuring that the right amount of product is assigned to the correct destination. This reduces errors that can occur when manually re-entering order lines.

Unit of Measure (UOM): The UOM specifies how products are quantified—whether in cases, pallets, or individual units. Including this detail in the SDQ segment prevents discrepancies in shipping and receiving, supporting smoother fulfillment.

Together, these elements enable a single purchase order to accurately reflect multiple shipping destinations and quantities. This not only minimizes manual entry and data duplication but also enhances delivery precision, reduces errors, and streamlines fulfillment workflows.

Use Cases and Industry Applications

SDQ purchase orders have wide-ranging benefits across industries that need to manage large volumes of products shipped to multiple destinations.

Here are a few examples:

Retail: National retailers often distribute products from a central warehouse to hundreds of stores. An SDQ order allows the buyer to send one consolidated purchase order with store-level allocations, instead of hundreds of separate orders, reducing administrative overhead and errors.

Manufacturing: A manufacturer supplying parts to multiple assembly plants can use SDQ purchase orders to ensure each facility receives exactly what it needs—whether that’s components for daily production runs or materials for just-in-time operations.

Logistics and Distribution: Third-party logistics providers (3PLs) managing shipments for multiple clients can process SDQ orders more efficiently, coordinating deliveries across regions without manually creating individual orders for each location.

These real-world applications show how SDQ orders help businesses cut down on redundant paperwork and maintain better inventory visibility. By streamlining order-to-ship processes, SDQ orders support leaner, more responsive supply chain operations.

Other Types of Purchase Orders

There are several types of purchase orders, each serving unique purposes within supply chain operations.

Below are the most common types:

Standard Purchase Order (PO): A standard PO is issued for one-time purchases with fixed terms for quantity, price, and delivery schedule. These are the most commonly used purchase orders.

Planned Purchase Order (PPO): This type of PO is used when the buyer schedules deliveries of goods at a later date. Quantities and prices are agreed upon upfront, but delivery details are flexible.

Blanket Purchase Order (BPO): Blanket POs are issued for recurring purchases over a specific time frame. They’re useful for long-term vendor relationships and repeated orders.

Contract Purchase Order (CPO): This type of PO establishes the terms of a purchasing agreement but does not specify the exact items or quantities being purchased.

Ship Destination Quantity (SDQ) Order: As described earlier, SDQ orders are used for distributing products to multiple destinations efficiently. They’re commonly referred to as spreadsheet or explosion orders.

Optimize How Your Business Manages SDQ Orders

SDQ purchase orders may seem like a technical detail, but in practice they represent a powerful tool for streamlining supply chain operations. By consolidating order headers and using the SDQ segment to assign quantities across multiple destinations, businesses can dramatically reduce data redundancy and minimize manual data entry. What’s more, you’ll ensure that products flow to the final destination at the right time.

From retailers replenishing hundreds of stores, to manufacturers supplying multiple plants, to shippers coordinating delivery times across regions, SDQ orders support precision, scalability, and efficiency. Accuracy, speed, and visibility are non-negotiable in today’s competitive landscape. Thus leveraging SDQ purchase orders is no longer just an operational improvement. Perfecting this process is a strategic advantage.

Whether you’re already handling SDQ orders or just starting to explore them, now is the time to optimize this process. With the right systems and expertise, SDQ orders can transform from a complex challenge into a streamlined workflow. You’ll end up with a dynamic system that reduces costs, strengthens partner relationships, and drives long-term supply chain success.

📘 Ready to simplify SDQ purchase order management? Contact us today or download our free eBook Supply Chain Insights to learn practical strategies for thriving in today’s dynamic supply chain landscape.