In this article, learn about:
What proof of delivery (POD) is
Why PODs are important in the supply chain
Best practices for managing PODs
Proof of Delivery (POD) is the confirmation of the receipt of goods. In the supply chain industry, this is typically a signed document completed by the recipient of the goods.
A POD typically includes:
Sender information
Company name
Address
Purchase Order (PO) number
Carrier information
Carrier name
Bill of Lading or Progressive Rotating Order (PRO) number
Recipient information
Recipients name
Recipients address
Signature from receival
Delivery details
Pickup date and time
Delivery date and time
Tracking number
PODs can be physical or digital, and are provided either to the carrier or the shipper, depending on how the delivery was completed.
If the carrier is a live-unload then the carrier will receive the POD before they leave the yard/DC. Then it is the responsibility of the carrier to make the POD available in their portal.
If the carrier is a drop-trailer, then the POD will be sent to the shipper of record. Then it is the responsibility of the shipper of record to make the POD available in their portal.
The Importance of PODs
Proof of Delivery is not simply good record-keeping, it’s a crucial part of protecting your assets and maintaining accountability across your supply chain. For a supplier, PODs confirm if a shipment was delivered on time and in full to a retailer and are an important tool to:
Ensure accountability: PODs create a paper trail through your supply chain to help you pinpoint when issues occur. For example, if your Bill of Lading confirms a shipment was picked up in full by carrier, but the Proof of Delivery indicates shortages upon arrival, it helps narrow down that the problem likely occurred during transit.
Verify fulfillment performance: PODs help confirm if a retailer’s delivery expectations were met, which directly impacts your compliance and performance as a supplier.
Support dispute resolution: If issues do arise and you receive a deduction, PODs can help dispute the deduction if it was taken invalidly.
The Role of PODs in Disputing Deductions
Properly managing and keeping track of PODs is crucial for disputing deductions. These documents serve as the first line of defense when disputing the legitimacy of a deduction.
For example, if a supplier ships prepaid to Walmart, this means the supplier is responsible for the shipment until it arrives at its destination. For these types of shipments, PODs are the primary proof that a shipment was delivered on time, in full, and in expected condition.
On the other hand, suppliers who ship collect pass the responsibility of the shipment to the retailer once the freight is picked up. In these cases, the supplier typically must rely on the Bill of Lading (BOL) as proof that the correct goods were given to the retailer’s carrier.
In order for a POD to be considered valid proof for disputing, the document needs to contain:
Purchase Order Number — The PO number related to the deduction.
Ship-To Address — The delivery location listed on the PO.
Receiving Confirmation:
For live deliveries: A distribution center stamp or store signature acknowledging that all items were received in full.
For drop-ship deliveries: A Drop Trailer stamp from the DC acknowledging that the load was dropped in the yard.
Here’s an example Proof of Delivery with the required information:
Related Reading: Should I Use Prepaid or Collect Shipping in Walmart?
Common POD Issues
Unfortunately, many issues that can happen with PODs tend to be outside of a supplier’s control. Because the POD is typically issued and completed by the carrier or the receiving party, suppliers often have limited visibility into, or control over, how the documentation is handled.
Some common issues include:
Illegible, handwritten, or incomplete documents.
PODs that are based upon initial receipt only.
Retailers failing to return the POD to the carrier and/or shipper of record.
The POD doesn’t indicate exactly what product is affected, only listing the quantity of what was short/damaged/over.
While the supplier may not have direct control over these issues, being aware of them can help you take proactive steps like improving communication, holding retailers/carriers accountable, and implementing processes to check for these errors before they snowball into major issues.
Best Practices for Managing PODs
With so much outside of the control of a supplier, it’s important to make sure that you are diligent about what you do have control over. When a supplier receives a POD from a retailer or shipping partner, it should be promptly documented using the best practices possible for clean records, including:
Log PODs in a centralized location: It's important to log PODs in an area that can be accessed across the team, ideally in a cloud-based system. This prevents misplaced documentation or issues that may arise if someone leaves the company but had documentation stored in a personal folder.
Index PODs in a standardized way: To ensure data stays clean and searchable, it’s important to index PODs with consistent naming conventions. Consider using multiple points of data in the file name, like the PO number, carrier number, etc. The more searchable the metadata, the faster data can be retrieved.
Regularly audit your documentation: Set up a recurring cadence to review PODs against recent shipments, deductions, and retailer compliance requirements. Audits help catch gaps, missing documents, or errors before they become harder to resolve.
Related Reading: The Supplier Maintenance Checklist