Delivery and Shipment:

 Delivery is one of the process step in Sales process (Order-to-cash) and

 Shipment is one of the sub-functions in the Delivery or Shipping process step.

Shipment:

 This Shipment function is an optional function.

 From one Shipping point, when you send multiple deliveries in one truck (means of
transport) and the truck is to deliver goods to several Ship-to-parties along a particular
route, then this function is called Shipment function.
 The document created for this is called Shipment document and cost involved is called
Shipment cost which is also optional.
 Normally, Shipment is created before PGI.