What Is An Electronic Bill Of Lading: Purpose & Advantages

In logistics, every delivery of freight involves paperwork. So if logistics make the world go around, then the paperwork is the logistics of logistics. It runs the world of logistics and of all the paperwork, the most important piece is the electronic bill of lading (eBOL).

Electronic BOLs are a hot area of logistics tech. They are creating streamlined workflows for drivers, back-office personnel, and fleet managers alike. In logistics, time is money. So it follows that by saving more of the former, you yield more of the latter.

While the benefits of the eBOL are evident, there is one persistent problem: the resistance to adopt and fully embrace this digital innovation. This reluctance can hinder the full realization of its advantages and impede the overall efficiency of supply chains.

To address this issue head-on and alleviate any apprehensions about eBOL that you might have, we have prepared this guide. Here’s what we will discuss in today’s article to build a compelling case for the widespread adoption of eBOL:

What is a bill of lading
How electronic bill of lading differs from its traditional counterpart
Benefits of eBOL for your supply chain
How Vector’s innovative solution streamlines the eBOL process

Bill Of Lading Basics: Mastering Shipping Documentation

The first thing to remember is that the bill of lading is a fancy way of saying receipt. The term “lading” is derived from the Old English word for “loading.”

A bill of lading is a legal document used in logistics. It serves as a contract between a shipper, often the seller or exporter, and a carrier, typically a shipping company or freight forwarder. This document outlines the terms and conditions of the transportation agreement and serves as evidence of the goods being received by the carrier for shipment.

Think of a bill of lading as a receipt and a title deed for the cargo transported. It provides important information about the shipment, like the type, quantity, and description of the goods, as well as the names and addresses of the shipper and the consignee (the party receiving the goods). It also includes details about the vessel or transport vehicle, the origin and destination, and any special instructions or requirements.

As the shipment moves from one place to another, there are important events that happen, like when it is delivered or when it is shipped from one location to another. These events provide proof that the shipment is progressing as planned. This information can be added to the bill of lading, making it more complete and accurate as the shipment moves along its journey.

By keeping track of these milestone events and appending them to the bill of lading, we can create a reliable and trustworthy record of the shipment’s progress.

A bill of lading is actually 2 pieces of paper. That’s why they’re often called bills of lading.

Both copies of the bill of lading contain the same information. Upon delivery, both parties sign both copies. The driver signs on the carrier’s behalf. Correspondingly, an authorized individual at the consignee will sign off on the freight bills.

The BOL serves 3 functions

A receipt of goods
Evidence of a contract of carriage
A document of title of ownership

You’ll typically find the following information on a BOL. Depending on the type of BOL, it may include other information as well.

Name of the consignee
Address of destination
The date the shipment is received
Description/quantity of freight
Packaging Type (pallets, boxes, drums, racks, etc.)
Dimensions (length, width, height, and weight)
NMFC freight class
Purchase order number
Bill of lading number
Special instructions
DOT hazardous material designation
Two signature lines, one for the driver and one for the consignee

Conventional BOLs: Ways Of The Past

In the past, an OTR driver’s only option was to obtain a paper copy of a BOL. The driver can fax the paperwork in but more often than not, that driver would just shove that paperwork into a packet, and forget about it for the rest of the driving week.

Once these BOLs made it back to HQ, the back office could then process the customer invoices. The billing process takes weeks. In today’s market, no one can afford to wait for the paperwork to arrive!

Oh sure, you can keep all the plates spinning – as long your trucks keep moving. But it isn’t very efficient. In addition, paper BOLs are an easy target for fraud. Keep that in mind if you’re considering digitization software and eBOLs, but are concerned about data security. Worst of all, paper BOLs limit the control of a company’s cash flow.

The solution? An electronic bill of lading.

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What Are Electronic Bill of Lading Forms

Tech is transforming society. Tech is transforming logistics and electronic BOLs are one major area of optimization.

An electronic bill of lading (eBOL or eB/L) “is the digital version of the traditional paper-based bill of lading and holds the same legal and functional value.” It serves the same purpose as a physical bill of lading, but instead of being a physical document, it exists in electronic form.

The electronic version of the bill of lading replaces the need for a physical paper document which results in faster and more efficient processing of shipping transactions. It is created, transmitted, and stored electronically, typically through specialized software or online platforms.

Legality Of eBOLs

The United Nations Commission on International Trade Law (UNCITRAL) is an important legal group within the United Nations that deals with international trade law. They developed a set of rules known as the Model Law on Electronic Transferable Records (MLETR) to promote the widespread use of electronic versions of important global trade documents like bills of lading.

The goal is to get rid of any legal obstacles in the way of using these electronic bills of lading and shipping documents and make them a standard across the global container shipping industry. Some European countries, like Denmark, Estonia, Finland, and France, have already included the MLETR in their laws.

Another organization called the Digital Container Shipping Association (DCSA) is also working on making the shipping documentation process fully digital. They’ve even created and published standards for the global shipping industry regarding the implementation of eBOL.

A Clean Electronic Bill Of Lading Is Like A Clean Bill Of Health

Put simply, you want a clean BOL. What is it? It’s exactly what it sounds like – you get a clean BOL when a freight delivery doesn’t declare any inconsistencies, defects, or issues concerning the delivery of goods or packages. In other words, on a clean BOL, the freight matches the description.

On the other hand, a dirty or claused BOL is issued when freight does not match the description. You also use a dirty BOL if a payment discrepancy occurs.

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7 Proven Advantages Of An Electronic Bill Of Lading

When it comes to streamlining your supply chain operations, embracing technology is the key. This digital alternative to the traditional paper bill of lading brings a truckload of advantages that can revolutionize your logistics processes. Let’s see why eBOL is the solution you’ve been waiting for.

Enhanced Security & Reduced Risk Of Fraud

In the traditional paper-based world, documents can easily fall into the wrong hands, be tampered with, or even get lost in transit. However, with an eBOL, you can bid farewell to these vulnerabilities.

eBOLs use advanced encryption methods, digital signatures, and authentication protocols to ensure that your shipping data remains safe and secure. These robust security measures create a virtual fortress around your electronic transferable records and protect them from unauthorized access and tampering.

Whether you’re engaged in local or international trade, the electronic format of eBOLs provides an extra layer of security. These digital documents are resistant to physical damage, loss, or theft. Unlike their paper counterparts, eBOLs cannot be misplaced, torn, or destroyed by accidents or natural disasters.

Also, eBOLs help you validate the authenticity of documents through digital signatures which are uniquely tied to the identity of the sender. This verification process ensures that the documents you receive are legitimate and have not been altered during transmission.

Faster Processing & Reduced Administrative Burden

A physical paper document needs to be printed, signed, and physically transported between different parties involved in a transaction. However, with electronic transferable records processes, the game changes. The electronic format of eBOLs allows for swift generation, transmission, and processing with just a few clicks.

With eBOLs, the laborious process that comes with managing physical paper documents becomes a thing of the past. Instead, you can navigate through a digital platform and effortlessly access and manage your electronic transferable records.

The benefits of faster processing extend beyond just efficiency. Quick documentation processing expedites the movement of goods, reducing dwell times and ensuring prompt delivery to your customers. In an era where speed and agility are highly valued, eBOLs give you the edge to stay ahead of the competition.

Improved Accuracy & Data Integrity

The manual approach is prone to human error, whether it’s illegible handwriting, missed signatures, or misplaced documents. eBOLs, the digital alternative eliminates the pitfalls of physical documents. eBOL provides predefined fields and prompts users to enter information clearly and consistently, promoting accuracy from the start.

eBOLs employ real-time error checks and validation processes to catch any discrepancies before they become costly mistakes. The digital nature of eBOLs ensures data integrity throughout the entire lifecycle of the document. It leverages encryption methods to safeguard your information. Digital signatures provide added security for the verification of document authenticity during transmission.

Cost Savings & Environmental Benefits

A traditional bill of lading comes with a range of expenses that add up over time. Printing stacks of paper, purchasing ink cartridges, and maintaining printing equipment all incur costs. Then there are expenses related to storage.

When you transition to a digital format, these costs are drastically reduced. You can seamlessly generate, transmit, and store your eBOLs on secure digital platforms, saving both time and money.

The digital nature of eBOLs reduces the risk of fines, penalties, and costly delays. Inaccuracies, missing signatures, or misplaced physical documents can result in financial setbacks and disruptions to your supply chain. With eBOLs, you can ensure accuracy, completeness, and accessibility at all times, minimizing the potential for errors and associated costs.

Embracing eBOLs also aligns with your commitment to environmental sustainability. When you go digital, you actively reduce your organization’s carbon footprint and make a positive impact on the environment.

Accessibility & Ease Of Sharing Information

Imagine searching through stacks of papers or filing cabinets to find a specific document. It’s time-consuming, inefficient, and prone to errors. With eBOLs, accessibility is at your fingertips. You can effortlessly navigate through a user-friendly digital platform, quickly locating the information you need at the click of a button.

The ease of sharing information is equally exciting. With a digital platform, you can transmit eBOLs to your trading partners electronically, eliminating the need for physical delivery. Whether it’s across towns or continents, the speed and efficiency of electronic transfer save you time, reduce delays, and enhance collaboration.

Additionally, eBOLs enable the secure sharing of information with designated stakeholders. Through user permissions and access controls, you have control over who can view, edit, or share the documents.

Facilitates Tracking & Traceability

Traditionally, the use of a physical paper document signed with ink made it challenging to accurately track and trace shipments. With eBOLs, you can easily keep tabs on the movement of goods from origin to destination. With a few clicks, you can access detailed information about the shipment’s current location, anticipated delivery time, and any potential deviations or delays.

eBOLs also provide a digital audit trail of the entire transaction journey. Every action and event related to the shipment is recorded. It captures important data like the time and date of document creation, signatures, and any modifications made along the way. This is particularly helpful when it comes to investigating disputes, resolving claims, or conducting post-shipment analysis.

Beyond the immediate benefits, the facilitation of tracking and traceability has long-term advantages for your supply chain. The captured data can be used for analytics, helping you to identify patterns, optimize routes, and enhance overall efficiency.

Integration With Digital Systems & Automation

With eBOLs, you can seamlessly integrate your documentation process with digital systems. When connected to your existing digital platforms, like ERP systems, transportation management systems (TMS), or warehouse management systems (WMS), you create a unified and connected ecosystem.

As shipments move through various stages, critical information like delivery notifications, customs documentation, and payment details can be automatically updated and shared with relevant stakeholders.

eBOLs also help in the automation of key processes. For instance, digital signatures and predefined fields make the bill of lading completion process streamlined and error-free. The system automatically validates the data, checks for completeness, and generates the necessary documents, all with a few clicks.

Vector’s eBOL Solution: A Better Way Forward

With Vector’s YMS, you’ll experience unparalleled efficiency and optimization throughout your yard operations. Say goodbye to manual paperwork, lost documents, and time-consuming administrative tasks.

Our app allows a driver to scan a paper BOL and upload it to the cloud immediately. It will auto-enhance the image, scan any barcodes, translate handwriting, and load that information into any integrated TMS platform. Imagine the ease of converting and managing electronic bills of lading documents with just a few clicks.

If a driver is in an area without cell phone coverage, this digital package will simply hold in a queue until cell coverage returns. At that point, the app will automatically send the paperwork to your office.

Vector’s eBOL solution lets you share information with your trading partners seamlessly. Whether it’s with carriers, suppliers, or customers, you can transmit eBOLs, share updates, and keep everyone in the loop.

Vector also integrates with your existing digital systems, such as TMS, or WMS, creating a unified ecosystem that streamlines your operations and enables data flow across platforms. This integration and automation will save you time, reduce errors, and optimize your supply chain processes.

Vector goes beyond just digitizing your documentation. It empowers you with real-time tracking and traceability, giving you complete visibility into the movement of goods within your yard. No more guessing or scrambling to locate shipments. With our solution, you’ll have instant access to critical information at your fingertips.

Conclusion

BOLs have been around forever. BOLs serve an important legal purpose. But the electronic bill of lading offers new and better ways to manage all that paperwork. The transition to eBOL not only streamlines processes but also enhances security, accuracy, transparency, and sustainability.

We must embrace these new and improved methods, seizing the opportunity to transform our industry for the better. These days, “it’s all Greek to me” and business-as-usual doesn’t cut it anymore. Instead, consider the time, money, and effort you can save by updating your workflow and shifting to the electronic bill of lading.

Take a look at Vector’s offers for eBOLs and start your company’s transformation to a streamlined digital workflow. Our user-friendly and highly efficient software will completely transform your documentation processes. Say goodbye to errors and hello to profits.

Don’t miss out on this opportunity. Talk to us and witness the remarkable impact of Vector’s electronic bill of lading software on your logistics operations. It’s time to revolutionize the way you do business.

This post was written by Brian Deines. Brian believes that every day is a referendum on a brand’s relevance, and he’s excited to bring that kind of thinking to the world of modern manufacturing and logistics. He deploys a full-stack of business development, sales, and marketing tools built through years of work in the logistics, packaging, and tier-1 part supply industries serving a customer base comprised of Fortune 1000 OEMs.