What is Handover?
Handover is validating a delivery order and forwarding the responsibilities of a shipment to a freight forwarder. Inspection plays a considerable role when transferring cargo from one entity to another. This process follows the incoterm norms and is used in every phase of a shipping cycle, where shipments are passed over.
Significance of Handover in an E-commerce Shipping and Delivery
Conducting inspections during handover allows a company to identify damaged and misplaced products. It plays an important role in the e-commerce shipping process, which include:
- Accountability and optimization: As inspections are standard, once a product is handed over to a freight forwarder, they assume the product’s liability from that point. In case a product sustains damage while shipping, the current forwarder will have to take accountability.
Prerequisites of Handover and How It Works
A handover requirement is a delivery order (D/O) and a mutual inspection from the passing and the receiving parties. A handover process is accomplished in the following ways.
- Delivery order acceptance: A delivery order is issued, requiring the current freight forwarder to transfer the custody of a product to the said entity. The D/O is scrutinized and then acknowledged.
- Inspection: After releasing the product, either party inspects the shipment per the invoice.
Use Case with Handover
A batch of 1,000 concealers was shipped to a Sydney warehouse from Phuket using ocean freight. Upon arrival, the shipping company issued a D/O to the freight captain requesting the handover of the shipment to the warehouse manager. An inspection was carried out by the freight captain and the warehouse manager, and the freight captain handed over the consignment.