Bill of Lading in Action: An Example

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To better understand the actual working of bills of lading, let us consider the example of a fictitious business named A1Foods that receives shipments of fresh meat and fish six times a week. The process is as follows:

The manager will first determine the daily requirements of these products.
Fills out a purchase order (PO)
Ensures the owner signs the PO after a thorough review
Emails it to the vendor
The vendor procures the supply.
Issues bill of lading to a representative from the carrier
The carrier delivers the meat and fish to A1 Foods.
The manager compares delivery with the bill of lading for product details like chile phone number list units, type of fish/meat and other details
The manager forwards it to owners if bills of lading match
The owner reviews and approves payment to the vendor
Thus, a bill of lading is a process which has several checks and balances to ensure a quality supply of goods and payment. In the example, the owner reviews the PO and BL to make the payment. If the two documents do not match, then the manager requests the vendor for an explanation. The third employee can verify the payment services for accuracy and prevent errors.

Purpose Behind a Bill of Lading
The bill of lading is the most important document to process shipments accurately. Here’s why:

Firstly, it establishes the contract terms between the carrier and the shipping company. It holds legal binding in matters of dispute.
In addition, it creates a hierarchy of control within an organisation to deal with placing orders. It effectively prevents pilferage, theft or misuse of company trust in managers placing the orders.
Thirdly, it acts as a receipt of shipped products.