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What is P.O.D.?

Proof of delivery (P.O.D) is a confirmation document that the buyer signs once they receive the product. It acts like an acknowledgment, and like the bill of lading, a P.O.D also accompanies a product at various phases of a shipping life-cycle. It protects a business from product liability after it has been handed over to the end user. 

Significance of P.O.D. in an E-commerce Shipping and Delivery

The proof of delivery, signed by a customer, serves as an acknowledgment for product risk transfer. Therefore, it allows a company from further being held accountable while also decreasing the chance of product theft. 

  • Customer acknowledgment and risk transfer: When a customer signs the mentioned declaration, it highlights their acceptance of the order. It plays a vital role, and the signing ceremony is coupled with a final inspection. 
  • Mitigating product theft: The receiver’s information is highlighted in the proof of delivery. It allows the courier to hand it over to the right buyer while enabling them to identify any imposter who might want to steal the product. 

Prerequisites of P.O.D. and How It Works

A fulfilled shipping cycle accompanied by all the supporting documents before the final mile is a prerequisite for initiating the final delivery and using the P.O.D.

  • Final delivery: The final delivery is initiated by the nearest storage hub once they receive documents such as the outbound transfer order, purchase return order, bill of lading, service order and sales order. 
  • Delivery and acknowledgment: The final is then completed per the requirements. The customer inspects the products and signs the P.O.D.  

Use Case With P.O.D.

For example, a storage hub near the outskirts of Sydney was stocking a set of self-tanning kits waiting to be delivered. After the shipping company issues the outbound transfer order, the product is processed and handed to the courier for the final mile. The courier delivers the product and acquires the customer’s acknowledgment on the P.O.D.

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