From Paper to Digital: The Transformation to Electronic Bill of Lading
-
Freya Jane
- Director of Customer's Success
For centuries, the bill of lading has been a vital component of global trade, acting as a contract for carriage, a receipt for goods, and a document of title.
Conventionally, the bill of lading is issued on paper, which is used to facilitate cross-border trading.
However, the conventional paper-based BL finds it difficult to meet the demands of the modern world for increased sustainability, efficiency, and security. Additionally, it also increases the cost of trading.
As per a survey conducted by McKinsey,
“Manual bill of lading can cost between 10-30% of the total trade documentation costs.”
To meet these requirements, a digital substitute is introduced called the electronic bill of lading, which is revolutionising international trade and transportation of goods.
What is a bill of lading (BL)?
A bill of lading is a document issued by the goods carrier to the shipper as proof of the shipment.
It serves as a title to the cargo being transported, which makes it crucial for international trade. Additionally, it acts as proof of the contract of carriage and receipt of the goods.
The cargo owner, who holds the BL, possesses the legal right to claim the goods or transfer ownership to another party within the supply chain.
What is an electronic bill of lading (eBL)?
The electronic bill of lading, or eBLL, is a contemporary digital alternative to the traditional bill of lading. It improves information speed, security, and accuracy while maintaining the same logistical functions.
In the past, shippers had to physically mail the bill of lading to consignees in another country in order to communicate important information.
Using an eB/L, you can instantly share Bill of Lading data with other supply chain participants.
Evolution to electronic bill of lading
Using a traditional bill of lading comes with many disadvantages for businesses engaged in international trade.
Challenges of paper bill of lading
Slow process: Manual processing and transfer of bill of lading consumes time and causes delays.
Costly: Operating costs are increased by handling fees, courier services, and printing.
Risk of fraud or loss: Paper records are vulnerable to loss, theft, and forgeries.
The shift to the electronic bill of lading
Managing errors: E-bills minimise the costs and time required to address inevitable errors, as they can be quickly cancelled and reissued.
Speed: The quick transfer of an e-bill allows a bill of lading to arrive at the discharge port in a timely manner when the vessel reaches, eliminating the necessity and expense of letters of indemnity.
Administrative costs: The substantial paper-based administration costs are decreased by the simplicity of electronic transmission.
Decreased risk of fraud: Audit trails, electronic signatures, and PINs lower the risk of fraud by making it more difficult to fake an e-bill.
Many innovative technologies, such as Intelligent Document Processing (IDP) by iCustoms, can assist you in getting rid of the manual bill of lading and trade documents.
Simplify your trade documents; switch to eBL now Try iCustoms’ IDP!
Benefits of electronic bills of lading for international trade
Paperless procedure
In contrast to the traditional bill of lading, an electronic bill provides a paperless procedure to all the supply chain parties involved. The digitalisation simplifies the creation, data entry, and transfer of the ownership of eBL to other parties.
With software like CRMs, ERPs, and TMS, the supply chain members can share information with each other. This reduces manual data entry errors, delays, and associated costs and allows the re-entry of data in case of mistakes.
Lastly, the most critical aspect of eBL is that it promotes green trade, eliminating the need for paper. It enables the sustainable trade of goods, making it an emerging choice for traders as it is beneficial for both the environment and their business.
Data accuracy
Information is collected from different sources to generate a traditional bill of lading. Human error is more likely to occur each time the data is re-entered. Processing data electronically will eliminate human errors, ensuring data accuracy.
Accessibility
With an eBL, users of PCs, laptops, tablets, and smartphones will be able to instantly view the documents and data online using a web browser. Users can access any smart device with an internet connection at any time and from any location.
Eliminate postal expenses
Posting bills of lading along with other shipping documents physically every time you ship an item adds up to your expenses. Shifting to electronic BL means saving a substantial amount of money.
Electronic storage and historical records
Electronic bills of lading are stored digitally, eliminating the need for physical storage of documents. Additionally, with this digital format, it becomes easy to search reference numbers, BL numbers, and other contact and product information. This simplifies report generation and insights from historical data.
Technological edge in electronic bill of lading
Utilising innovative and advanced technologies, the electronic bill of lading revolutionises trade documentation by providing unmatched accuracy and efficiency.
eBLs enable companies to optimise their processes and maintain a competitive edge by integrating automation, artificial intelligence, and real-time tracking.
Here’s the role of technology in electronic bills of lading:
Artificial intelligence & automation
Reduce the amount of manual input required by using sophisticated AI algorithms to automate the creation, validation, and administration of eB/Ls.
Accurately identify and fix documentation errors to ensure compliance and cut down on expensive delays.
Integrate predictive analytics to make proactive decisions and optimise workflows.
Real-time tracking
Get complete visibility into your shipments and associated documents.
Track the progress of items in transit so that unanticipated delays can be promptly addressed.
Provide clear updates on the status of shipments to increase customer satisfaction.
These technological developments align businesses with the demands of contemporary trade environments while also optimising logistics.
Businesses can future-proof their operations and maintain their agility, efficiency, and global connectivity by implementing such capabilities.
Wrapping up
The electronic bill of lading represents a bold step in the digitalisation of international trade. Adopting this new technology helps reduce costs, increase efficiency, and promote a sustainable environment.
Whether you are a small import/export business or a large enterprise, consider shifting to electronic bill of lading and navigate the challenges with greater efficiency and transparency.
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Tired of compliance issues, delays, and fines? Streamline your operations with iCustoms.
Reduce costs, minimise risks, and improve efficiency