It should be a straightforward business scenario: making sure that
delivery documentation from supplier or haulier matches up with documentation at 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 paperwork match
Documents involved typically include delivery notes generated by product supplier or logistics provider. The Customer takes delivery and confirms goods are received by signing delivery note, which becomes a proof of delivery (PoD). When 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 customers’ GRNs and suppliers’ delivery notes. This ensures that suppliers can raise an accurate and timely invoice for goods delivered and accepted.
This is vital to completion of whole process. Raising an incorrect invoice for goods shipped that may differ from description of goods accepted by 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 supplier’s delivery note. The customer takes delivery and confirms that goods have been received by signing delivery note. This note then becomes a PoD. In this case, transaction has been straightforward.
However problems arise if following complications are added to 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 PoD.
• The goods being delivered are accepted by customer, but he uses his own internal delivery documentation or GRN. This needs to be matched against supplier’s delivery note. The situation is complicated further when customer uses his own internal product codes, and/or goods are dispatched in multiple deliveries.
In both these cases actual delivery needs to be matched up with 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 correct invoice has been raised. This can turn normal 30-day period into 90 days or more.
How a computerised system can make 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 company’s TokOpen data centre. Here they are printed from AS400 Warehouse Management System. A unique folder is automatically created in TokOpen, where 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.
