What is Delivery Order?
A Delivery Order (DO) is a crucial document in the supply chain and logistics industry, signifying an authorization to release cargo from a carrier to a designated party. Typically issued by a freight carrier, freight forwarder, or logistics company, it instructs the release of the transportation of goods to the proper party, often after all requisite payments and compliances have been fulfilled.
Creating a Delivery Order:
1. Gathering Necessary Information
Includes details about the shipment such as description of goods, quantity, destination, consignee details, and carrier information.
2. Verification of Shipment and Payment
Ensure that the goods are ready for shipment and all associated costs, including freight charges, have been paid.
3. Completion of Relevant Details
Filling out the DO form with accurate shipment details, including consignor and consignee information, shipment date, and expected delivery date.
4. Authorization
The DO must be authorized or signed off by the issuing authority, usually someone in a managerial position within the logistics or shipping company.
Components of a Delivery Order:
- Shipper and consignee details.
- Description of goods, including quantity and weight.
- Origin and destination details.
- Instructions for handling and delivery.
- Any relevant shipping marks or numbers for identification.
Importance of a Delivery Order:
- Facilitates Cargo Release: Acts as a formal authorization for the release of cargo, ensuring that goods are delivered to the rightful recipient.
- Legal and Compliance Assurance: Serves as a legal document, verifying that all customs, duties, and compliance requirements have been met.
- Traceability and Record Keeping: Provides a record of the transaction, essential for tracking and accountability in the supply chain.
Who Prepares a Delivery Order:
- Typically prepared by the freight carrier, freight forwarder, or logistics service provider handling the shipment.
- In international trade, the DO might be issued by the shipping line or agent, signifying the release of cargo for onward transportation to the consignee.
A Delivery Order not only streamlines the logistics process but also acts as a safeguard, ensuring that all parties in the supply chain adhere to agreed-upon terms and legal requirements. Its precise preparation and management are pivotal for the smooth and efficient handling of shipments, making it an indispensable element in the world of transportation and logistics.
