5 Paperwork Issues in Logistics and How to Manage Them
The documentation of how products move throughout the supply chain is crucial but also tedious and very unsexy. The problem is when you get complacent with paperwork, it can cause very real consequences with the actual product and end customer experience. Here are 5 issues that come up often in shipping and logistics and how to avoid or manage them.
No Bill of Lading (BOL) - Depending on the mode of transportation the BOL may be supplied by the carrier or should be supplied by the shipper. In either case it is good to be aware of who’s responsible for producing the BOL well before the product is due to be picked up. If it is not clear and there is no BOL on the day of loading, it could not only cause delays but extra charges for a missed pickup or detention waiting for a BOL to be created.
Missing Documents for Import/Export - When products are crossing an international border there is even more paperwork required and the list can be long. Everything from a Certificate of Origin (COO) to a commercial invoice and even sometimes certificates and inspection documentation may be required for customs officials to release the product to cross the border. A good rule of thumb is to ensure the driver has copies of all documents required (your customs broker can tell you what is needed) and then send the same set of documents to your customs broker as well as the dispatch for the carrier. This way everyone involved in the border crossing will have the documents if something goes missing. Additionally, send more paperwork than you think you have to, if you have additional paperwork relevant to the shipment, include it. With customs requirements changing often, you never know what documents may be helpful.
No Value on the BOL - Specifically for over-the-road in Canada but with other modes as well, not having a value of the product or misstating the value can have negative repercussions. This can become an issue when something goes wrong with the shipment, damage or loss for example, when insurance needs to be claimed. In Canada, the carrier and their insurance are liable for damages and loss while in transit. However, if the value of the goods is not listed on the BOL the liability may be limited to a per kilogram amount or a flat rate (whichever is higher). To ensure coverage of the goods, the value of the goods must be on the BOL, not another document. Case law is a bit conflicted here whether a separate invoice would suffice so it is best practice to put the value on the BOL.
Consignee versus Importer - This can be confusing, but the importer and consignee are sometimes the same entity and sometimes they are not. When they are different, the appropriate company needs to be listed in the correct place. The importer is the company bringing the goods into one country from a shipper in another country. The consignee is only the place where the goods will be delivered. Making sure that these entities are listed properly on the documentation is very important to ensure a smooth transition of the product across international borders.
Missing Signature from Consignee - Proof of delivery (POD) is typically a BOL signed and dated by the consignee. Now from time to time, the people off-loading will only sign one of the documents. There are a few ways to deal with this, proactively, a call to the receiver to communicate that all BOLs need to be dated and signed upon arrival can be helpful. If the documents come in not fully signed, a call or email to the receiver can usually alleviate the issue. Receivers usually keep copies of the BOL and they can send a scanned signed copy. Some consignees use stamps as well, which is acceptable, make sure to know what the stamp should look like before shipping to the consignee.
Paperwork is the least fun thing about supply chain but these documents play important roles in the movement of goods. Understanding the documents and how to effectively use them can help save time and money of the many companies involved in the supply chain.
