Are you wondering if you should use a paper based bill of landing or go for the newer electronic variant? Well this article will solve the confusions that you might have about the digital BOL by providing you insights to some of the most common challenges it solves in the auto shipping industry.
We have discussed four challenges that the digital BOL, which are faced by anyone using the paper based bill of landing, so let’s have a look at them below:
Challenges That a Digital BOL Solves:
With the paper based bill of landing, there is a high risk of alteration in the terms and conditions. The person bearing the paper-based bill of landing can easily make any type of changes he wants, causing problems for the shipper or receiver or even resulting in massive scams.
However, with the help of a digital bill of landing, the contract’s specification will be distributed and store in an immutable ledger. So there will be no chance of anyone manipulating it without leaving a digital signature of their identity.
Risk of Damage:
Since the paper based bill of landing can be damaged, there is a high risk of it being carried with the transporter to hundreds of miles. Things like rain or sweat of the driver can destroy the paper or remove the ink. Furthermore, the carriers make several stops throughout the journey so they may stop somewhere to dine and forget the bill of lading there. This can result in confusion regarding where to deliver a car, and who is the actual owner of the vehicle.
With a digital bill of landing, you don’t have to worry about any of these things, it will be stored in a fully secured server and can be accessed whenever you want.
Since the paper based bill of landing is filled by a human, their hand writing can be hard to understand for many. In fact, the people who fill the BOL, do it hundreds of times a day so their writing can become really messy.
If this happens, many people who check the bill of landing throughout the journey might face difficulty in understanding what’s being written. This can result in a lot of mistakes including wrong understanding of the address or consignee name. A digital BOL is written in computer based writing which everyone can read and understand quite easily.
With the help of digital bill of landing, you can completely be free of paper use meaning that you will save a good chunk of money in administration costs. Firstly, you won’t need a complete department of people to print, fill and manage different bills of landing as all of it can be done on computer with the help of just one person.
Secondly, the use of paper system costs 5-10% of the value of the goods shipped every year. (Source). So by eliminating the use of paper and going digital, you will save this cost as well which means more profit for you.
Over to You:
There is no doubt that Bill of Landing is an important part of the car transport service and you cannot just eliminate it, however, using electric version of it is more beneficial. The digital bill of landing is safer, easier to use and understand and saves a good amount of money that you would’ve paid in paper and administration costs.