Bill of Lading
BOLA Bill of Lading (BOL) is a required legal document between a shipper and a carrier that details the goods being shipped.
A Bill of Lading (BOL) is a legally binding document issued by a carrier to a shipper. It acknowledges receipt of cargo for shipment. The BOL is a contract of carriage between the shipper, carrier, and consignee. It also acts as a document of title, meaning whoever holds the BOL has the right to claim the goods.
The document contains key information about the shipment. This includes the names and addresses of the shipper and consignee, the origin and destination points, and the date of shipment. It also describes the items being shipped, including their quantity, weight, dimensions, and freight classification. Any special handling instructions or terms of the contract are also noted on the BOL.
On the shop floor, the shipping department is responsible for creating an accurate BOL for every outbound shipment. An incorrect BOL can cause significant problems. These problems include delayed shipments, incorrect freight charges, and disputes with customers or carriers. If goods are damaged in transit, the BOL is the primary document used to file a freight claim.
Manufacturers typically generate BOLs using their Enterprise Resource Planning (ERP) or Warehouse Management System (WMS). This software pulls order details directly from sales orders or work orders. This automation reduces manual entry errors and ensures consistency. The system can print a physical copy for the driver and send an electronic version to the customer.
A CNC machine shop ships an order of 100 aluminum parts to a customer. The shipping manager generates a BOL detailing one pallet, a total weight of 450 pounds, and the correct freight class. The truck driver signs the BOL upon pickup, and the customer signs it upon delivery, confirming the shipment was received as described.
Who creates the Bill of Lading?
The shipper, which is usually the manufacturer sending the goods, is responsible for preparing the Bill of Lading.
What is the difference between a BOL and a packing slip?
A BOL is a legal contract with the freight carrier. A packing slip is a document for the customer that lists the contents of a specific package.
Can a Bill of Lading be electronic?
Yes, an electronic Bill of Lading (eBOL) is a digital version of the document. eBOLs are common and help speed up the shipping process.
What is a 'clean' Bill of Lading?
A clean BOL is one that the carrier has signed without noting any damage or shortages. It confirms the goods were received in apparent good condition.
What happens if the BOL is lost?
Losing a BOL can delay payment and complicate ownership claims. The carrier may require the shipper to post a bond before releasing the goods to the consignee.
Purchase Order
POA purchase order (PO) is a commercial document issued by a buyer to a seller, indicating types, quantities, and agreed prices for products or services.
Warehouse Management System
WMSA Warehouse Management System (WMS) is software that directs and optimizes warehouse operations from receiving to shipping.
Third-Party Logistics
3PLA service that allows a manufacturer to outsource operational logistics, from warehousing to delivery.
Supply Chain Management
SCMSupply Chain Management (SCM) is the process of managing the flow of goods, data, and finances related to a product from procurement to final delivery.
Finished Goods
Finished goods are products that have completed all manufacturing processes and are ready to be sold to customers.