Use digital delivery order forms to conveniently create and update real-time shipping information to track your deliveries effectively. Keep an eye on, what is an important for you and your partners.
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A delivery order (D/O), also known as the shipment form, is a document used by dispatchers to relay delivery instructions to freight forwarders. Essentially, it is issued by the carrier’s destination office in exchange for the bill of lading (B/L) and identifies the parties legally allowed to receive the cargo.
Although it does not serve as evidence that the recipient has received the cargo, it can serve as the paper trail for the recorded transition of shipment responsibility from the carrier to the freight forwarder. The parties legally permitted to receive the shipment include the consignee or customs broker indicated as the ‘notify party’ on the B/L.
1. The elements of a delivery order form
2. The importance of issuing a delivery order form for shipping
3. A comparison between delivery order and bill of lading
4. How the delivery process happens
5. Enhance your logistical process with a digital solution
To properly facilitate delivery of the goods and avoid errors, the delivery order form should include the following information:
Logistics is a complex operation that involves several moving parts to function, and it includes multiple processes that require plenty of communication, organization, and physical transfer of the goods. This complexity requires proper documentation for a cargo handover to identify the parties liable in case of damages or lost goods.
On top of this, the delivery order helps to ensure that the goods are released to the correct party. Because the carrier can only issue a delivery order once they have confirmed that the consignee has surrendered an adequately endorsed bill of lading —in that the consignee is verified as the correct party to receive the cargo and has settled all necessary charges — the cargo cannot be pulled out easily just by anyone.
Although both the bill of lading and delivery order are surrendered to the consignee or the import agent at one point in the shipping process, they are essentially different in function. The B/L is the contract between the shipper and carrier indicating that the latter has received the cargo and must safely deliver the cargo to the consignee.
On the other hand, the D/O is the document that facilitates the release of the cargo. The written validation indicates the carrier’s obligations have been settled, and the cargo is ready to be released to the appointed consignee.
To understand it better, let’s take a look at one example:
A 20-foot container of clothing was shipped from Thailand to the United States by sea. Before it arrives at the destination port, the carrier must submit the manifest, notify the consignee or importing agent through an arrival notice or freight invoice, and send the requirements for the release.
Once that is done, the customs broker will now accomplish the following to secure the D/O.
After all the steps are done, a delivery order will officially be issued, and the cargo can be turned over from the carrier to the consignee. This allows the appointed parties to complete all remaining import activities, clearance, and final delivery. As a shipper, forwarders and consignees should always check the export regulations beforehand to ensure that the goods do not remain at customs.
Not only are paper delivery orders vulnerable to damage, but they can also potentially be subject to illegible handwriting and errors. These can often cause unnecessary delays to the shipping process. On the other hand, a digital form brings real-time data updates, improved accuracy, and convenient communication among dispatchers and coordinators because information can be sent anytime and anywhere.
With Lumiform, you can enjoy all the benefits that digitization brings. Even better, our mobile app can make accessing delivery order forms easy across the board, as information is readily available even when you’re offline. Our powerful tool can take your logistical process so you can enjoy efficiency and convenience with every transaction.
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