Proof of Delivery vs Bill of Lading: A Complete Guide for Beginners

Proof of delivery (POD) and bill of lading (BOL) are crucial aspects of international trade, providing customers and businesses with important information during the delivery process.

More than 75% of consumers are now demanding that their parcels be secure during delivery and tracked. According to Statista, customers value security and cost as the most significant factors in the delivery process. Following closely were delivery tracking and ordering ease.

That’s why POD and BOL are important, to ensure a secure and safe delivery.

But what is the difference between a bill of lading and proof of delivery, and where does it fit into the delivery model?

When goods are on the move, there are two important documents that keep shippers, carriers, and customers protected: the bill of lading (BOL) and the proof of delivery (POD).

What is a Bill of Lading?

First, there is a bill of lading, which is a legal document issued by the carrier to the shipper. It details all the goods being shipped and from where, and it also includes the destination.

You can almost see it as a receipt or a contract of carriage. It’s a critical document in international trade. How else will someone be able to claim ownership of shipped goods?

The BOL outlines the carrier’s responsibilities during cargo transportation. This document proves that the parcel was handed over to the right carrier.

When disputes arise, this document is vital.

BOL involves the following:

• Shipment details are created, with information about the item including its quantities, weights, dimensions, origin, and destination.

• The carrier signs the BOL to confirm receipt and collects the goods in the stated condition. Now, the responsibility shifts from the shipper to the carrier.

• When the goods are transported, the bill of lading travels with the shipment as the official record of what’s in transit and who’s responsible.

• The last loop of the legal contract is when the consignee (receiver) signs the BOL to acknowledge receipt of the goods.

• There are always copies of the signed BOL that help in any legal dispute.

What Is Proof of Delivery?

Understanding proof of delivery is vital for businesses involved in global trade. Proof of delivery serves as irrefutable evidence that the parcel was delivered. It collects and serves as legal and financial documents.

Like a Bill of Lading, it’s a confirmation document for shippers, consignees, and customers.

POD helps prevent disputes and ensures that goods are delivered to the right person. If goods are delivered to the wrong person, it can result in a legal matter.

POD or electronic signature capturing involves the following:

• When a proof of delivery is issued, the delivery is complete. The driver arrives at the customer’s location with the goods.

• The POD states that the customer confirms receipt by signing, providing a photo, or acknowledging the delivery through another method.

• The POD captures the condition of the goods handed over to the customer. It often records whether the order arrived intact and at the correct location through electronic signatures, photos, or notes.

• An electronic POD is automatically sent to the supplier, retailer, or logistics platform, confirming the successful completion of the delivery.

• The electronic POD is stored for record keeping, dispute resolution, and customer communication. Physical POD documents can cause storage problems and create problems when trying to retrieve specific information.

READ: How to choose the best proof of delivery app: A step-by-step guide

Types of Bills of Lading

There are different types of bills of lading, including straight bills, order bills, and charter party bills. Each type of bill of lading has specific functions that serve as an audit trail when shipping goods.

Straight Bill of Lading

A straight bill of lading is a non-negotiable document. This means there won’t be any transfer of ownership while the goods are in transit.

The goods must be delivered directly to the consignee, who can be an individual or a business named on the document.

This is often used when the shipment has already been paid for. It’s a straightforward transfer of goods, and it creates flexibility because no other party can claim ownership of the goods in transit.

Order Bill of Lading

In contrast, an order bill of lading is negotiable. The ownership of the goods can be transferred while they’re in transit, by signing over the bill to another party.

This is common for international trade. Let’s say a customer bought an item on Temu, and the goods must change hands multiple times before delivery.

Charter Party Bill of Lading

A charter party bill of lading is used for large shipments where an entire vessel or a large portion of it has been chartered.

This is a contract between the shipowner and the charterer. A charter party bill of lading is standard for bulk shipping industries, such as coffee beans, grain, or coal.

The terms and conditions of this legal document depend heavily on the negotiated contract.

Why Choose Electronic Proof of Delivery?

Proof of delivery closes the loop of the delivery journey by confirming the goods reached the right customer. Electronic proof of delivery is becoming increasingly popular, as it offers a faster and more efficient way to provide evidence.

Businesses that have adopted digital POD have seen reduced customer disputes.

Unfortunately, not all proof of delivery apps are of the same quality. Some capture blurry photos that won’t hold up in a dispute. Others back up your delivery process with timestamps, signatures, and geolocation data.

A customer claims they never received their parcel, which landed at the wrong address. The driver then gets blamed, and a dispute unfolds.

How can you prove that the delivery was made at the right address? Proof of delivery protects businesses from fraudulent claims and gives drivers protection and accountability.

Some businesses still use physical paperwork for proof of delivery, which creates endless records that must be stored somewhere on the premises.

Electronic proof of delivery can help reduce paperwork and improve customer service.

WATCH: Top Proof of Delivery Apps

Types of Proof of Delivery

Physical POD

Think of a delivery driver who gives the parcel to the customer, holding a clipboard and a pen that looks like it has seen better days.

The driver hands over the pen and flips the clipboard around. Voilà, proof of delivery signature captured. It sounds simple, right? But it is not built for speed or accuracy.

Sure, some companies scan and upload these documents later, but that’s wasted time and labour.

Electronic POD

Let’s introduce electronic proof of delivery. Now this is where delivery gets an upgrade. Instead of paper, the proof lives on a phone or tablet.

It’s quick, convenient, and eliminates language differences, misunderstandings, and incorrect information. A quick digital signature, a photo snapped at the doorstep, maybe even a GPS stamp, and boom, delivery confirmed.

Electronic POD integrates directly with delivery software, which means:

• Real-time updates for shoppers.

• Easy access to records for businesses.

• Zero chance of losing that proof down the backseat of a truck.

Digital copies are automatically stored in the cloud and can easily be recovered when needed. There is no space for paper filed in the wrong folder, and basements are full of files.

ALSO READ: Proof of delivery: What to look for

The Legal Weight: BOL vs POD

BOL and POD documents look similar on the surface, but they don’t have the same legal weight.

A bill of lading is a legally binding contract between the shipper and the carrier that establishes ownership and responsibility.

If something goes wrong mid-journey, like the cargo goes missing, the goods get damaged, or there are disputes over liability, the BOL is the first piece of paper lawyers will look for.

Proof of delivery finishes the fight. It’s not a contract, but it’s a confirmation that can prevent a dispute from going to the next level, a court case.

It’s a signed receipt or timestamp with visual evidence, such as a signature, photos, and timelines. It confirms crucial information about whether the parcel reached the right hands. It won’t replace the BOL, but it often is the first line of defence when customers complain about fraud.

Together, they’re important; one starts the journey, the other closes it.

Who Relies on POD and BOD Documents?

Not every player in the delivery game cares about the same paperwork. There are shippers, carriers, and the shopper. They all find different documents relevant and important.

Here’s how it usually breaks down:

Shippers Rely on BOL

Shippers, or in other words, the businesses or suppliers sending out the goods, rely on the bill of lading. These documents prove they handed everything over in good condition. Without this, they have no leg to stand on when something goes wrong mid-shipment.

Carriers Rely on BOL and POD

Carriers could be companies that own trucks, couriers, or freight companies. These companies rely heavily on the bill of lading and proof of delivery.

The BOL sets out the carriers’ responsibilities. Once they take control of the shipment, the carrier is the only party that can issue a bill of lading. In essence, all companies offering transportation services generate BOLs for shipment.

However, carriers also need the POD to close the loop. This includes delivery notes, delivery orders, and delivery dockets. Without proof that they actually delivered the items to the customer, they won’t have any business.

Retailers and Shoppers Rely on Proof of Delivery

Online stores and big-box retailers rely on proof of delivery documents. They tell them that the order landed on the right doorstep, keeping refunds and complaints from spiraling out of control.

Imagine receiving dozens of calls every day from customers asking where their parcels are. POD eliminates those disputes and improves the experience.

Proof of delivery is as simple as a receipt that includes more detailed information, such as the recipient’s signature and delivery date.

Knowing the orders have been delivered, you can ensure more shoppers return.

A quick snap of the parcel can give shoppers a sense of relief, as they know their package has arrived and is in good condition.

Case Study: When Proof of Delivery and BOL Save the Day

Let’s say a national appliance retailer ships a $2,000 fridge from its Sydney warehouse to a customer in Melbourne. Here is an example of what will be needed to make sure the customer, shipper, and carrier are happy and accountable for the delivery.

Step 1 – Bill of Lading Is Created

The retailer (shipper) gathers information for the bill of lading, with information like:

• Model number
• Product weight
• Dimensions
• Origin
• Destination
• Consignee details

The transport company (truck, courier, or driver) signs the BOL confirming the collected fridge is in perfect condition.

Step 2 – In transit

The fridge travels across state lines, with the bill of lading as its official record of responsibility.

Step 3 – Delivery attempt

The carrier arrives at the customer’s home with the fridge. The instructions state that the driver must leave the fridge in the garage and get it signed by the nanny.

Using an electronic POD app, the driver snaps a few photos, leaves the fridge in the garage, gets a signature from the person at home, and leaves.

Step 4 – The dispute

The new fridge owner calls days later: “I’ve spotted a few scratches on the fridge door. I want a refund.”

The timestamps and delivery photos make it easy to determine who should take responsibility for the damaged door.

Without documentation, the retailer would have a $2,000 hole in its pocket.

Step 5 – Resolution

The retailer checks its system, and the BOL and POD direct the appliance store on what steps to take.

The BOL proves the carrier picked up the fridge from Sydney. The POD shows the customer’s signature, photo evidence, and timestamp in Melbourne.

With both documents, the retailer quickly resolves the dispute. The customer is shown the POD record and attached photos, including delivery times. The case is closed without court battles, lost revenue, or reputational damage.

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