A bill of lading (BL or BoL) is a legal document that shows the type, amount, and destination of the goods being shipped. It is given by the carrier to the shipper. When the carrier delivers the goods to a predetermined location, the bill of lading also serves as a shipment receipt. No matter how the goods are shipped, this document must go with them. It must be signed by an authorized representative from the carrier, the shipper, and the receiver.
The bill of lading is a legal document that tells the shipper and the carrier everything they need to know to handle a shipment correctly. It is used for three main things. First, it’s a proof of ownership document for the goods listed on the bill of lading. Second, it is a receipt for the products that were shipped. Finally, the bill of lading represents the agreed terms and conditions for the transportation of the goods.
As an example, a logistics company plans to ship gasoline from a plant in Texas to a gas station in Arizona using a big truck. After putting the gas on the truck, a plant worker and the driver sign the bill of lading. Once the carrier brings the fuel to the gas station in Arizona, the truck driver asks the station clerk to sign the document as well.
For theft to be stopped, every business needs to have internal controls in place. The separation of duties is an important part of internal control because it keeps one employee from having too much power in a business. No internal control system is the same as any other. But most of them stick to a standard set of core beliefs that have become common management practices.
Putting in place internal controls can help operations run more smoothly and stop fraud. A bill of lading is one of several important documents that must be managed and looked over in the right way to stop assets from being stolen.
For example, let’s say that ABC Suppliers gets specialty fasteners delivered three times a week. Shop manager decides what kind and how many units to order for the project. Then, they fill out a purchase order (PO), which the owner of ABC looks over and initials before sending it to the vendor via email. A representative from the overnight carrier and the person selling the product sign a bill of lading.
Then, the carrier delivers the order, and the manager looks at the bill of lading to see if it matches what was asked for on the PO. If the information matches, the PO and the bill of lading are sent to the owner. The owner looks over the documents and writes a check to the food vendor.
In this case, the owner does not give the vendor a check until he or she has looked over the purchase order and the bill of lading. This step makes sure that ABC only pays for the things it ordered and got. When the shop manager compares the two documents, if they don’t match, the manager will ask the vendor about the difference. A third worker checks the bank statement and makes deposits for the company. To stop theft, all of these steps must be taken.
What Is a Bill of Lading Used For?
A bill of lading is mostly used for three things. First, it’s a proof of ownership document for the goods listed on the bill of lading. Second, it is a receipt for the products that were shipped. Lastly, the bill of lading shows the agreed-upon terms and conditions for getting the goods from one place to another.
What Does a Bill of Lading Include?
Usually, a bill of lading will have the names and addresses of the shipper (consigner) and receiver (consignee), as well as the date of the shipment, the amount, exact weight, value, and the type of freight. Also included are a full description of the items, including whether or not they are dangerous, how they are packaged, any special instructions for the carrier, and any tracking numbers for special orders.
KEY TAKEAWAYS
1. A bill of lading is a legal document that shows the type, amount, and destination of the goods being shipped. It is given by the carrier to the shipper.
2. A bill of lading is a title document, a receipt for goods shipped, and an agreement between a shipper and a carrier.
3. This document must be sent with the goods and must be signed by an authorized representative from the carrier, shipper, and receiver.
4. A bill of lading can help stop asset theft if it is handled and looked over properly.
Daniel Szwed - Marketing Manager
Resourceful and innovative Marketing Pro, with 20+ years of progressive experience in the marketing and creative technology industry. Responsible for digital and traditional marketing efforts that promotes brand awareness, increases engagement, and drives revenue.
