What is Proof of Delivery (POD)?

Proof of Delivery (PoD) is an important document used in storage, transport and logistics processes. It is a legal proof that the goods have been successfully delivered to the recipient. In this blog we will discuss the importance and benefits of PoD in the delivery process.

What is Proof of Delivery System?

Proof of Delivery (PoD) is a document or receipt in the SAP system that serves as evidence of the delivery of goods to a customer. When a company sends out a shipment to a customer, it's important to have a record of the delivery to ensure that the customer received the goods and that the shipment was completed. 

Why is Proof of Delivery Important in the Logistics Industry? 

The pod document is a proof document that the goods have been delivered according to the specified terms and conditions. It secures the sender and the recipient. It is used in logistics and transport processes to facilitate accountability and tracking.

Proof of Delivery helps to make delivery transactions in supply chain processes transparently, prevent disputes and confirm that the delivery has been made. In a process without Proof of Delivery, it becomes difficult to maintain accountability and tracking.

PoD (Proof of Delivery) is used to prevent the following situations;

• To track and analyze the reason for the deviation, such as shrinkage, product features, and theft. 
• To record transportation damage 

These analyses play a crucial role in future agreements with forwarding agents, customers, or vendors.  

Different Types of Proof of Delivery 

There are three different types of Proof of Delivery commonly used in delivery processes: Electronic PoD, digital PoD and physical PoD. Each of these types of PoD has its own characteristics, advantages and disadvantages. The type of PoD used may vary according to different factors such as the delivery method, the nature of the goods.

Electronic Proof of Delivery (ePOD)

Electronic PoD refers to the use of electronic devices such as smartphones, tablets, etc. to obtain the recipient's signature when delivering goods.

Advantages;

• ePODs are digitally archived and can be accessed quickly when needed.
• Reduces the risk of loss or damage.
• It enables real-time monitoring of deliveries.

Digital Proof of Delivery (dPOD)

dPOD is the use of digital technologies such as digital signature, GPS coordinates of the delivery address, photographs of the delivery to record the delivery to the recipient.

Advantages;

• dPOD is a type of delivery of proof that offers the highest security and accuracy.
• It provides valuable data for analytical and optimization processes.
• It enables the utilization of data for the improvement of logistics and transport operations.

Physical Proof of Delivery (POD)

The physical document is the traditional type of POD and requires the recipient to sign a paper document to certify that delivery has been made. The signed document is given to the shipment as a proof of delivery. Paper PoDs can be considered disadvantageous compared to other PoD types because they are prone to loss and damage.

When to use the PoD? 

For outbound processes, after the sales order creation, a delivery is created based on the sales order and then, the goods issue is posted. At this point, PoD needs to be confirmed. If the business has a TM integration, PoD needs to be confirmed after the creation of the forwarding settlement document. The business has to wait until the confirmation of PoD to form a billing document. Thus, businesses no longer need to create credit memos. 

SAP TM - SAP EWM Integration

What data does the PoD contain? 

In the SAP system, the PoD typically contains information such as the date and time of delivery, the name of the customer who received the goods, a signature or other form of confirmation that the goods were received, the received quantity, and the reason for the deviation of the quantity. If a difference between delivery quantity and confirmed quantity is observed, a reason needs to be entered either manually, partially automatically, or automatically. Otherwise, after a specific given time, the system creates PoD automatically without differences. The ship-to-party transfers the PoD in IDoc format into the SAP System or into the supplier's external system. Besides, the deliveries can be differentiated by the usage of PoD based on the delivery item category and the master data of the customer. 

Benefits of Proof of Delivery

The use of PoDs offers many benefits for both the consignee and the consignor.

• PoDs increase the transparency of logistics and shipping processes. It allows the buyer and sender to know all the details about the delivery.
• Transparent deliveries increase customer satisfaction.
• Thanks to the Proof of Delivery, customers can verify that they have received the goods as agreed or use this document in case of a problem.
• PoDs require a signature from the buyer at the time of delivery. This signature indicates that the buyer accepts that the goods have been delivered in accordance with the agreed terms and conditions.
• It prevents disputes and conflicts.
• Proof of Delivery holds the carrier responsible for the delivery of the goods. If a delivery driver fails to provide a PoD, it can be inferred that there is a problem with the delivery.