Supply chain is integral for businesses worldwide, and they’re spending millions to ensure that the complete fulfillment cycle, including proof of delivery, is optimized.
In fact, recent forecasts have shown that the global supply chain management (SCM) market is expected to cross $30 billion by 2026. However, businesses must understand the proof of delivery before initiating any optimization measure.
What Is Proof of Delivery?
Proof of delivery (POD) is basically a mutual acknowledgment between a delivery agent and the customer. Traditional PODs used to be physical documents that customers had to sign to show they had received the delivery.
However, with the advantage of technology, most businesses are leveraging the use of electronic proof of delivery. Proof of delivery is highly important for both customers and businesses. It lets customers know when their order is delivered and helps businesses reduce costs. Electronic POD, commonly known as ePod, serves the same purpose as the traditional one.
However, it requires customers to provide an electronic verification. Common forms of acknowledgment include QR codes or one-time password (OPT) verification. Our route optimization and planning software can help businesses take electronic proof delivery as soon as they drop off the package.
The Difference Between POD and Bill of Lading
Most businesses often confuse proof of delivery and bill of lading (BOL), however, it’s important to understand the difference in order to benefit from PODs. Where proof of delivery is a mutual acknowledgment between businesses and customers, a BOL is a list of detailed information about the order.
A BOL contains a list of all the items that are shipped and delivered to the customer. The main difference between the two is that a BOL is signed by the carrier or the dispatcher when they pick up the order. One isn’t necessarily better than the other. Therefore, businesses must use both documents.
Benefits of Proof of Delivery in Logistics
Businesses can avail many benefits from using proof of delivery in logistics delivery management software. Some of them include:
- Improved transparency – Drivers often claim that an order has been delivered before actually delivering it to increase their KPIs. Proof of delivery tracking helps businesses gain more visibility into when the order was actually delivered.
- Reduced costs – Proof of delivery allows businesses and customers to have a mutual agreement on the product or server being received. This allows businesses to save themselves from any refund or redelivery costs that may incur otherwise.
- Accelerated back-office operations – Using an electronic proof of delivery allows businesses to receive notification that the customer has acknowledged receiving their order. This process allows them to eliminate paperwork and improve back-office operations.
SCM is critical for businesses now more than ever before as more and more customers are ordering online. Such consumer buying patterns dictate that businesses keep track of their orders and deliveries.
Using an electronic proof of delivery is the most feasible way to ensure delivery tracking as it improves transparency and reduces costs. InstaDispatch allows businesses to improve their delivery operations by automating route optimization, order tracking, and verification.