Proofs of Delivery and Logistics: Speeding Throughput and Avoiding Pitfalls

It should be a straightforward business scenario: making sure that the delivery documentation from the supplier or haulier matches up with the documentation at the target destination.

However life is rarely straightforward, and if problems do arise, order completion times and cash flow will inevitably suffer as a result.

Making the paperwork match

Documents involved typically include delivery notes generated by the product supplier or logistics provider. The Customer takes delivery and confirms the goods are received by signing the delivery note, which becomes a proof of delivery (PoD). When the goods being delivered are accepted customers can also use their own delivery documentation, referred to as Goods Received Notes (GRN).

The key issue is to match the customers' GRNs and the suppliers' delivery notes. This ensures that suppliers can raise an accurate and timely invoice for the goods delivered and accepted.

This is vital to the completion of the whole process. Raising an incorrect invoice for goods shipped that may differ from the description of the goods accepted by the customer, will result in payment delay ? extended debtor days ? and adversely affected cash flow.

Take a typical example. A customer takes an order from his supplier that is then dispatched with the supplier's delivery note. The customer takes delivery and confirms that the goods have been received by signing the delivery note. This note then becomes a PoD. In this case, the transaction has been straightforward.

However problems arise if the following complications are added to the equation:

? The goods being delivered are discovered to be damaged. The customer will only take delivery of goods in a satisfactory condition, and this is annotated in the PoD.

? The goods being delivered are accepted by the customer, but he uses his own internal delivery documentation or GRN. This needs to be matched against the supplier's delivery note. The situation is complicated further when the customer uses his own internal product codes, and/or the goods are dispatched in multiple deliveries.

In both these cases the actual delivery needs to be matched up with the outgoing sales invoice. Where there is a disparity, a normal 30-day credit period can drag out into a lengthy debtor cycle in which customers will not pay for goods delivered until the correct invoice has been raised. This can turn the normal 30-day period into 90 days or more.

How a computerised system can make the process trouble free

TokOpen is a program used by a major UK supplier of dairy products. Reduced reliance on physical pieces of paper allows more flexibility and a reduction in delivery problems.

When sales orders are received from customers, despatch notes are printed and automatically captured and uploaded to the company's TokOpen data centre. Here they are printed from the AS400 Warehouse Management System. A unique folder is automatically created in TokOpen, where the document is stored and indexed by its delivery details.

The ordered goods are delivered either on one vehicle or in multiple deliveries, as applicable. Delivery notes are signed, with handwritten comments inserted if a discrepancy has arisen.

These signed documents are then returned to any one of the company's 20 depots across the country, where they are scanned by depot staff. At this point the documents are automatically indexed and uploaded to a TokOpen data centre where they are stored alongside the corresponding original despatch note in the appropriate folder. If a discrepancy is indicated on the scanned delivery note, this automatically triggers a warning for a customer service agent distribution to investigate.

If necessary the invoice can be amended before the sales invoice is issued. This has to take place within 72 hours of delivery. All document access, workflow and investigations are performed using a standard Web browser, which ensures that the system can be quickly deployed with minimal administrative overheads.

Where customers' own GRNs are received, these are scanned and read automatically, matching the delivery line items with corresponding items from the despatch notes. The system is flexible and allows a 'many to many' relationship ? more than one delivery note relating to more than one GRN for a single customer order.

The process is further complicated because customers use different product codes for goods delivered, and documents are returned at different times. The system automatically consolidates this process and matches the different documents and line items to the original order. All documents relating to an order are stored alongside one another within a single delivery folder at the data centre.

Where a discrepancy arises, a customer service agent is automatically alerted and instructed to investigate the situation and amend the invoice. Other documents, including claims from customers for damaged goods, are also scanned into the relevant delivery folder.

Converting the paper chase into an online document flow

TokOpen's Workflow is used to manage the transaction and make adjustments on the company's system. This cuts out the need for printed documents, and converts the traditional paper chase into a controlled online document flow.

TokOpen highlights relevant deliveries to the appropriate customer service staff managing that customer account. This ensures that when the invoice is issued it is correct, and will not be contested by the customer, resulting in late or non-payment.

TokOpen also ensures that all delivery documents are available online across the whole enterprise. If an invoice is contested, authorised members of staff anywhere across the country can retrieve all information about the transaction using a standard Web browser.

Additional benefits delivered by the TokOpen system include:

? Improved management and monitoring of hauliers' performance

? Faster response times for customer service enquiries

? More time for customer service staff to be deployed on other duties

Tokairo is an international provider of Document Management (TokOpen) and Education systems solutions (TokAM). Tokairo has its headquarters in the UK, with a sister company in the USA responsible for the Americas. http://www.tokairo.com REF=TO1EZ

---

Accountants / Lawyers Do Yourself a Favor - What do Your Customers Want?

In my day to day practice in strategic human resource management I often come across customers looking for a 'good' accountant or 'good lawyer'. As an accountant myself the common thread for a... Read More

To Complain and Win! - My Personal Recipe

Prime directive: Make sure your claim is reasonable! Otherwise, forget it.First thing: If you have a legitimate claim denied or a beef with a company (my method can be applied to insurance companies,... Read More

Find Out Where Your Firm Stands in Today?s Customer

Looking For Ways to Improve Sales and Customer Relationships?Find Out Where Your Firm Stands in Today's Customer Touchpoint Management (CTM) Revolution by Taking the CTM Quiz(San Rafael, CA) What could be more important... Read More

How To Build a Profitable Business

It's never too soon to start saying thanks to your clients, vendors and referral sources for what they contribute to your business. Everyone loves to be appreciated and acknowledged, so start now and... Read More

Cultivating the Trust Factor

In today's highly competitive economy, it is difficult to maintain a significant market advantage based on your professional skills alone. Developing a trusting relationship with your clients is key to your success. No... Read More

The History of CRM -- Moving Beyond the Customer Database

Customer Relationship Management (CRM) is one of those magnificent concepts that swept the business world in the 1990's with the promise of forever changing the way businesses small and large interacted with their... Read More

Customer Satisfaction Is Your Business

Regardless of what business you are in - you are really in the business of satisfying customers. The degree of customer satisfaction you deliver determines the level of long-term success you will achieve... Read More

10 Customer Service Quality Statements to Measure up Against

It might sound quick and simple, to say how well your business does in satisfying it's customers. Hearing such as:-"We're increasing our turnover by 14% year to date""Our customer complaints are now less... Read More

We Got It Wrong: Never Under Promise & Over Deliver

You know how it is, you believe something for so long, everyone agrees with you, all the books tell you it's true and then suddenly you have a blinding revelation - we've all... Read More

How to Win the Hearts of Your Customers and Friends

Those of us doing business over the internet have to become especially adept at our listening and speaking skills since we don't have the luxury of talking with our customers face to face.... Read More

8 Critical Steps to Establish a Customer Service Culture

"Every company's greatest assets are its customers, because without customers there is no company," --Erwin FrandDuring our recent weakened economy, many businesses have seen declining revenues and declining budgets. Declining budgets often lead... Read More

Transforming Disgruntled Customers into Your Biggest Advocates

"I am writing to complain about the widget I bought from your site the other day."Sell anything and eventually you will be on the receiving end of a sentence like this. So how... Read More

How To Use Your Current Customers

Jay instructed a customer of his to offer a rare coin collection to new customers for just $19. He was actually losing a couple of dollar on every sale! But .... of the... Read More

Stellar Customer Service in 10 Simple Steps

If you're like me, you've had plenty of experience with BAD customer service. Just think about the last time you had a bad experience with a product or a service.Perhaps the product or... Read More

Breaking the Ice and Winning Over the Client!

Wherever you turn these days you'll find articles covering every business strategy and tactic available to man, from how to make a great presentation to strategies for success all the way to negotiations... Read More

How to Easily Increase Your Profits

Do you remember the last time you went into a shop and the person 'serving' raced over to you, greeted you with a lovely smile, heaps of enthusiasm and said, "Welcome to our... Read More

Accountability

The Call Center world is an intense pressure-driven environment continually being shaped by pressure to ensure steady profitability and a secure competitive advantage.Accountability and a basic fundamental understanding of Performance Management serve as... Read More

6 Reasons Why Complaining Customers are Golden

With Some Tips on How to RespondTt has probably happened to you if you own your own online business. You get an email or even a phone call from someone who is upset... Read More

Clients... and 38 ways to communicate with them

As Alan Weiss (guru to the savvy consultant) says: "It is actually difficult to contact clients too much. It is easy to fail to contact them frequently enough. If there is anyone anywhere... Read More

You MUST Sweat the Small Stuff

It's The Little Things That Make or Break a Small BusinessIf you make a poor impression in small things, why should customers trust you with larger ones like buying your product regularly or... Read More

CRM = Customers (dont) Really Matter

CRM was supposed to bring companies closer to their clients. The basic idea was to; find out what a client wants and needs, give it to them, and get them to be your... Read More

Can Three Words In Websters Dictionary Be The Key To Customer Loyalty?

Are you concerned about customer loyalty? Are your customers so loyal that they will stick with you through hell and high water? And if not, you really need to question how you can... Read More

Is your Online Business Customer-Friendly?

Customer service is increasingly seen as one of the most valuable uses for a commercial World Wide Web site. Your Web site is available on a 24 hour, seven days a week basis.... Read More

Customer Service, the Internets Primary Neglected Business Concern

Customer service is everything to a business. Just look at big, successful retail chains: They let you return perfectly good merchandise just because you changed your mind. Is that insane? Yes, pretty much,... Read More

Communicating Value

Abstract: People buy for their reasons, not yours. This article covers the key elements that prospects want to hear you talk about.Always, but especially during lean times, effective sales professionals know the importance... Read More

Are You Satisfying Your Customers?

The latest report from the American Customer Satisfaction Index (Michigan School of Business) reports the following:Customer dissatisfaction with the quality goods and services offered in the marketplace is more than a nuisance. The... Read More

Businesses Need to Rehumanise

Big companies and corporations have lost the human touch. The question is, when will humanity catch on, or like robotic sheep will we do whatever the business shepherds tell us, no matter how... Read More

Are You A Coward? I Was

Over the last month, I have come to hate emails and answerphones; not because I get 100 emails every day but because emails and answerphones are fast becoming the tool of the coward.... Read More

Sending Mixed Signals Can Send Your Clients Away

I call it the "wave and roll."You walk up to an intersection. You look both ways before you cross when you make eye contact with an oncoming vehicle. You meet the gaze of... Read More