When it comes to satisfying your customers and building trust, an array of essential documents come in handy. Those include invoices, proof of delivery, load lists, and delivery notes. Though invoices and proof of delivery have gained a significant value for order fulfilment, the delivery note is often overlooked during the process. A delivery note encloses essential information for the customer and also acts as proof of delivery to list the number of items and description. Apart from making your service transparent, there are other benefits of a delivery note that this blog aims to explore. At the end of this blog, you will also learn why they are an effective document of your delivery process and also discuss strategies to craft delivery notes effortlessly.
What is a Delivery Note?
Definition
It is a document that is sent to the customer with each shipment of goods. A delivery note details the list of items, quantity of units, and other relevant descriptions of the products delivered. In the service industry, it can also be used for intangible products or services like software solutions and the features that are delivered to the client. The customers get a signed copy of the delivery note by email with the dispatch note or along with the shipped items. Customers can sign a copy of the delivery note and send it back as proof of delivery.
Purpose of a Delivery Note
A delivery note aims to provide a detailed account of delivered goods or services to confirm the recipient of the delivery. With a delivery note, a business ensures that the contents of the delivery match the order of goods delivered. This facilitates the communication between a client and vendor while also resolving discrepancies that may arise with the shipment.
Uses of Delivery Notes
Imagine sending out a shipment, and the customer happily accepts it, but you get caught by surprise when a customer disputes the payment. This will be frustrating for you as a supplier. That's where a delivery note comes in, which can be used as a signed agreement between you and your customer, detailing exactly what they received. It works as a shield against discrepancies, protecting you from payment headaches and keeping things clear and pleasant. Whether you're sending a single item or a truckload, this little document is very useful. It ensures everything matches up, from quantity and condition to what's listed on your invoice. No more missing items or mysterious extra charges popping up later.
Businesses are suggested to hold a copy of delivery notes for at least five years from the point of delivery, as it can ensure that everything is organized. In the case of any issue, you will have a proof of shipment at the end of the contract with the customer. If document storage is an issue for you, intelligent accounts receivable software can help you integrate delivery notes to unlock a new level of efficiency. This allows matching delivery notes with invoices and eliminating manual data entry that consumes significant time for the finance teams in the invoice-to-cash cycle. With a faster invoicing process and electronic payments through an AR automation solution, you will cut down on administrative burdens and operational costs, which improves your cash flow.
Benefits of Delivery Notes
Delivery notes have an array of benefits for your business. This section presents some of the top delivery note benefits that help in routine operations, regardless of the business size.
1. Dispute Management
One of the significant benefits of the delivery notes is a reduction in disputes with customers. It helps as a proof of delivery and creates a medium of communication with details that goods and services have been delivered. When a client double-checks the shipment with the delivery note, they sign it to confirm that they received what they ordered, and it reduces the risk of any dispute.
2. Improved Accountability
In a case when something is wrong in transit, and your driver decides not to mention it. The goods that were missing or damaged can be spotted while checking the delivery notes. This way, it improves the accountability of the business that these issues were at the end of the delivery team or the business for which compensational actions can be taken.
3. Protecting Organization’s Bottom Line
Delivery notes can also help prevent chargebacks and frauds from happening. During a delivery contract, if a customer signs a delivery note and accepts the shipment, this means you have to uphold your end of the contract. Later on, if a customer raises a dispute, having a signed proof of delivery can serve as evidence that the delivery was received and everything was in order at that time. This can validate the contract upheld by your company and safeguard your company's bottom line.
3 Ways to Create Delivery Notes
There are numerous methods for generating delivery notes and various mediums through which you can opt to send them to your customers. Following are the five effective methods you can consider to improve efficiency and clarity in the fulfilment process.
1. Choosing the Right Tools
Traditional paper-based delivery notes prove to be inefficient in today’s modern business environment. Many technological tools are there to automate your processes and create a better impression with electronic delivery notes. Paper notes are required to be created manually using the same template and ought to be sent with the order. It requires two copies: one for the customer and a signed copy for the business end.
The electronic method, on the other hand, requires you to customize the template and keep the data of the delivery note online, reducing the risk of loss. Businesses using accounts receivable automation software can streamline delivery notes, freeing their finance teams from manually creating them. You can send the note by email and receive a copy of the signed document online.
2. Express Brand Identity
Individuality is crucial for brands, and using your brand’s visual appeal, including colors and logo, can make your delivery notes unique and recognizable. This can also reinforce a lasting brand impression on your customers. Following are some useful elements to consider in your delivery notes.
- Company’s logo
- The color scheme of the brand
- Graphic elements and textures
- Company’s slogan or motto
- Contact information and address
3. Details and Elements to Include on Delivery Note
After understanding the benefits of delivery notes, now it’s time to find out what elements it must have. Usually, it requires all the information that a customer must know about the items and delivery. To ensure you don’t miss out on a crucial detail, the following elements are important to consider.
1. Order Information: It must include information related to products delivered, the date of delivery, invoice number, order number, and delivery address of the customer. With this information on the delivery note, when it is undersigned by a customer, it will be evidence that it was delivered on the due date.
2. Company Details: The company information, which may include business name, address, ID, website, contact information, and relevant details, is also essential. It is essential to mention those because it will ensure that the customer has received the delivery accurately. However, in case of a disagreement, the document can serve as a proof of delivery.
3. Description of Customer Order: It's important to offer a detailed description of the items being delivered to ensure accurate order fulfillment. A delivery note must include the item names, description, size, quantity, price, volume, and measurement unit if applicable. This comprehensive information serves as a reference point in case of any discrepancies. Should a disagreement arise, the client can consult the delivery note, which clearly outlines what was delivered in comparison to what was originally ordered.
Final Words – Securing Trust and Organization’s Bottom Line
One frequently disregarded aspect of the order fulfillment process is that a delivery note holds significant importance in communicating the contents of a delivery to the customer. Moreover, it acts as tangible evidence confirming the delivery of items, offering reassurance and transparency in the transaction. The blog highlights the benefits of a delivery note, its uses, and the ways it can be crafted. A delivery note can prevent disputes and is also considered a legal document of delivery to sustain trust among customers and secure the bottom line of an organization.
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