Summary
POD (Proof of Delivery) plays a key role in the logistics and transportation industry. It involves the high-speed exchange of data, providing data to suppliers for inbound and outbound scheduling and comprehensive customer-related services. Electronic proof of delivery helps companies grow quickly and sustainably, prevents customer loss, and reduces overall business costs. The proof-of-delivery system is a strong factor that can enable businesses to operate at a higher level regardless of the company's size.
What is POD in logistics?
The logistics and transportation ecosystem is settled on information management. This aspect relates to fast data exchange and involves providing data to suppliers where inbound and outbound transportation planning or services related to customers as outbound transportation planning. The second part is closely connected to providing goods to the customers.
The data exchanged ranges from advance shipment notifications:
Goods receipt
Delivery notes
Proof of delivery
This data can be handled by a transportation management system (TMS) and a document management system (DMS). This aspect of data exchange is closely related to the relationship between transportation and logistics transactions, in which shippers and logistics service providers (LSPs) receive precise information about the status of shipments. The most popular one is Proof of Delivery, which can still be available in two types. [1]
What are types of POD?
Paper POD
The traditional type of POD is a printed document with a handwritten sign placed by the recipient. In this method, the driver arrives at the recipient's address to the warehouse or directly to the end customer and signs the paper upon delivery.
Electronic POD
Digital POD is important from many aspects for carriers, but a good carrier should ask itself the one question: how does digital delivery POD help its customers?
ePOD provides customers with clear insights into their deliveries, allowing them to avoid discrepancies that could lead to returns and, subsequently, refunds. In other cases, it could result in the need for redelivery, the costs of which would affect both shippers and recipients. The primary reason for using ePOD is that it eliminates documentation errors and provides more accurate descriptions of problems that carriers may encounter during shipping. These may include damaged or missing items but also enable traceability capabilities. Therefore, simply saying, everyone, whether a carrier or recipient, can see that the package or pallets have reached its destination.
Why does digital proof of delivery really matter?
There are also other crucial reasons why customers should use digital POD. Here are some additional proven benefits of why ePOD is important:
Maximizes customer control
Online customers often have no control over delivery times, but with POD, they often can obtain track & trace to effectively follow up on the delivery.
Prevents theft
Proof of delivery provides peace of mind to customers, letting them know that their products are in their possession or with a trusted neighbour.
Why do you need digital delivery POD?
Transportation companies may face numerous challenges when they lack the right notification system. This can lead to issues throughout the entire supply chain, particularly communication-related.
Here are the supply chain challenges that illustrate why digital POD is necessary:
Lack of Traceability
Carriers and shippers require maximum transparency in their processes to track the precise location of a consignment. This information is crucial for initiating investigations into missing boxes or pallets. It often occurs that drivers unload pallets in the wrong warehouse or mix small packages with various items on a single pallet intended for different locations.
Lack of Customer Confirmation
Signals confirming package delivery from end customers are vital. The absence of digital POD often prolongs the communication process, as carriers must coordinate with truck drivers to confirm consignment delivery. Due to various circumstances, obtaining such information is not always straightforward and can consume much time.
Lack of Document Control
Shipping documents should align perfectly with the consignment, including matching quantities, purchase numbers (PO), order numbers, and other critical details. Without digital POD, it is not always possible to verify documents due to typographical errors, illegible handwriting, and other factors.
Lack of Electronic Confirmation
Digital POD enables the capture of package photos and the collection of digital signatures from recipients. These features are not available with traditional paperwork and are often essential for avoiding disputes related to damaged packages or unreadable handwritten signatures. Without digital POD, businesses may struggle to protect themselves against disputes and face increased workloads in handling customer complaints.
Proof of delivery trucking - streamline your operations with proof of delivery software
Drivers are the personnel who are mainly responsible for the final confirmation on the digital POD. They may use their mobile phones or other devices such as tablets with the ability to scan barcodes from shipping labels and barcodes on POD’s. These come with ruggedized cases that can protect equipment from damage.
This system looks simple when the driver shows POD to the recipient, but behind the little digital feature is always a comprehensive system that improves business operability. POD is a feature of much more comprehensive shipping or delivery management software.
Using delivery management software, you're able to:
Delivery Tracking in Real-Time
Track your real-time fleet location and ensure on-time delivery. You can monitor all your vehicles on one map and track the progress of all deliveries on dashboard.
Instant notifications on deliveries
You can receive notifications of orders and deliveries with detailed information in real-time. Whether these are email updates on deliveries or SMS for you and your customers.
ETA tracking for customers
In transportation, estimated arrival time (ETA) is very important due to contractual agreements. With software, you can inform your customers with live updates and prevent later deliveries.
Last-mile delivery
For retail, performing last-mile delivery on the highest level is essential. Digital POD feature can help your business comp with this process much easier and ensure timely deliveries.
JIT delivery
The manufacturing industry often highly requires just-in-time (JIT) delivery. This is needed to save warehouse space and speed up the production. POD can ensure that the required RAW materials are shipped on time.
What do you need in proof of delivery software applications?
Mobility is crucial these days. Delivery software provides Proof of Delivery app functionality, where you and your customers can see directly what's happening with their packages. Mobile applications are dedicated to mobile devices and can significantly improve business performance.
Here is why you need proof of delivery software application:
Quick data exchange
All stakeholders, from carriers to shippers and customers, can get automated notifications about the current locations of their consignment. Drivers can also Import information on deliveries and collections.
Integration
Mobile apps can be synchronized with most transportation systems, such as transport management systems (TMS) and document management systems (DMS). You may need only POD applications that connect to this system, making business more cost-effective.
Commercial value
The POD mobile app has great commercial value. It improves the customer experience and can be easily available for iOS or Android from an online store. It can also enable the customer to make another purchase with embedded links to the online store.
Proof of delivery in logistics and transportation
Here are the area of logistic and transportation where POD impact operations:
Transport Management
A fleet of trucks requires constant data exchange. This is crucial when a truck driver is going to unload one pallet and can pick up another from a different warehouse. This information is needed for transport administrators, who can quickly replenish shipments and save money while ensuring higher customer satisfaction.
Delivery Management
Every day in logistics, hundreds of thousands of packages are shipped every month. Delivery management needs to be supported by digital POD to keep track of all that data and to prepare better forecasting for the next quarter.
Warehouse Management
Employees in the warehouse need to monitor the progress of consignments to better plan inventory and prepare dock schedules for trailer unloading. This is essential for preventing delays. Thanks to POD, they can track the shipment's location and estimated delivery time, which helps them to be well-prepared for unloading.
Billing & Invoicing
The transportation business, like any other, relies on financial factors. Without up-to-date data on deliveries, freight forwarders may not receive payment. In logistics, this also helps to achieve better results on key performance indicators (KPIs) and decreases the probability of financial penalties for not meeting delivery volume commitments.
Digital proof of delivery template
Digital POD can vary depending on shipment requirements. Mostly, it's about different data required on the document.
Vendor information
POD includes the company's contact information (name, phone, address, email address, contact person) on the delivery notes to ensure their authentication.
Order number
POD required reference/order number to track packages and provide better customer service. Simply, anyone can see that he received the right package.
Delivery address
POD should display the delivery address to ensure accuracy and timely delivery.
Order description
Very often, POD contains the list of order items to resolve disputes and confirm the accuracy of the shipment.
Billing details
POD is also financial evidence, which includes payment and destination information to effectively handle disputes and chargebacks.
Time and date
POD should record order timestamps for detailed delivery information.
Customer signature
Proof of Delivery needs to contain record electronic or physical signatures as proof of successful delivery.
Benefits of digitalized electronic proof of delivery
Transportation and logistics can greatly benefit from electronic POD. This is one of the few features that can be independently implemented by software developers and seamlessly integrated into existing systems very quickly. POD can be deployed as simple mobile applications that streamline day-to-day operations in the transportation industry. It is also connected to document management and workflows, as the supportive software behind the POD solution can share data with the right people involved in the shipping process.
Here are the benefits of digital POD:
Extended information access
Mobile app with POD records delivery details, real-time tracking, and creates a paperless record, saving drivers' phone calls.
Reduced disputes
Equipped drivers can capture evidence of delivery issues with a photo and data on the spot, reducing disputes and costs.
Greater efficiency
Quickly exchange digital POD as evidence of speed-up invoicing and payments.
Lack of paperwork
Electronic signatures eliminate physical paperwork, reducing costs and risk.
Improved control and traceability
PODs enable time tracking, optimizing operations for quality and savings.
Greater transparency
Customers can view, download, or even print PODs, which reduces the need for customer service inquiries.
Let's look at POD
To summarize the overall need for digital POD in transportation, we clearly identify its significant value. This value comes from the fact that one simple and relatively small solution can impact the work of almost everyone in the supply chain. This is why software-based POD solutions offer a certain return on investment (ROI), regardless of the size of the company. Knowing the location of goods is always important.
At Adexin, we have been supporting the transportation industry for many years. We have a proven track record in implementing digital document management solutions. We can increase business capabilities with digital solutions supported by POD mobile software. Let's talk about your business needs. Contact us today.
References:
[1] Proof of delivery solution for supply chain management; Retrieved from: https://query.prod.cms.rt.microsoft.com/cms/api/am/binary/RWyNB1