TECHNICAL UNIVERSITY OF MOMBASA
SCHOOL OF BUSINESS
DEPARTMENT OF MANAGEMENT SCIENCE
BACHELOR OF COMMERCE ; PROCUREMENT
BLT 4302: LOGISTICS MANAGEMENT
Group Members
BCOM/689J/2021 Aaron Mwakavi
BCOM/745J/2021 Willsmith Otieno
BCOM/1117/2022 Oscar Wafula
Reasons for Keeping Logistical Documents
Keeping logistical documents serves many purposes to the organization and the
suppliers bounded by those documents.
Legal Compliance;-Shipping manifests and custom declarations are required
to be kept for certain periods before disposal.
Audit Purposes;- These documents provide a train of transactions and
activities which are essential for auditing purposes which earn
accountability and transparency.
Quality Control;- Keeping records allows for monitoring of the performance
metrics ensuring that quality and standards are maintained and identifying
areas for improvement.
Inventory Management;- Maintaining the inventory levels as low as
possible, tracking goods and avoiding overstocking or under stocking.
Customer Service;- Having logistical documents ready helps in quick
responses to customer demands, order status and inquiry of products.
Analytical Insights;- Used in identifying and analyzing trends and also
making informed decisions and resource allocation within the organization.
Types of Logistics Documents
1. Bill of Lading (BOL):
A bill of lading is a legal document issued by a carrier to acknowledge
the receipt of goods for shipment.
It serves as a contract between the shipper and the carrier, detailing
the terms and conditions of transportation.
Types of bill of lading include straight (non-negotiable), order
(negotiable), and through bills of lading.
Information typically included in a BOL includes shipment details,
consignor and consignee information, freight charges, and terms of
carriage.
2. Packing List:
A packing list, also known as a packing slip or shipping list, itemizes
the contents of a shipment.
It accompanies the goods during transportation and serves as a
reference for verifying the contents upon receipt.
Details included in a packing list may include product descriptions,
quantities, weights, dimensions, and packaging types.
3. Commercial Invoice:
A commercial invoice is a document issued by the seller to the buyer,
providing a detailed account of the goods sold.
It serves as a legal record of the transaction and is used for customs
clearance and payment purposes.
Information typically included in a commercial invoice includes seller
and buyer details, description of goods, unit prices, total value, and
terms of sale.
4. Shipping Manifest:
A shipping manifest is a comprehensive list of all shipments
scheduled for transportation on a specific route or vessel.
It consolidates information from multiple bills of lading or shipping
orders into a single document.
The manifest typically includes details such as shipment identifiers,
origin and destination, carrier information, and quantities.
5. Customs Declaration:
A customs declaration, also known as a customs form or entry form,
is required for international shipments crossing borders.
It provides customs authorities with information about the contents,
value, and origin of the goods being imported or exported.
Types of customs declarations include import declarations, export
declarations, and temporary import/export declarations.
6. Delivery Order (DO):
A delivery order is a document issued by a carrier or freight
forwarder authorizing the release of goods to the consignee or their
agent.
It serves as proof of ownership and entitlement to take possession of
the goods upon arrival at the destination.
The delivery order typically includes details such as shipment
references, consignee information, and release instructions.
7. Warehouse Receipt:
A warehouse receipt is a document issued by a warehouse operator
to confirm the receipt and storage of goods in a warehouse.
It serves as evidence of ownership and can be used as collateral for
financing or as proof of inventory for insurance purposes.
Information included in a warehouse receipt may include product
descriptions, quantities, storage locations, and storage charges.
8. Freight Forwarder's Bill of Lading:
A freight forwarder's bill of lading is issued by a freight forwarder
acting as an intermediary between the shipper and the carrier.
It consolidates multiple shipments from different shippers into a
single bill of lading for transportation.
This document simplifies documentation and reduces administrative
burdens for shippers with multiple consignments.
Challenges in Maintaining Logistical Documents
1. Data Accuracy and Completeness:
One of the primary challenges is ensuring the accuracy and
completeness of logistical documents.
Inaccurate or incomplete information can lead to errors in inventory
management, transportation planning, and order fulfillment.
Factors such as manual data entry, human error, and communication
gaps contribute to this challenge.
2. Document Standardization:
Logistics involves numerous documents such as bills of lading,
packing lists, invoices, and customs declarations.
Maintaining consistency and standardization across these documents
can be challenging, especially in global supply chains where different
countries may have unique documentation requirements.
Non-standardized documents can lead to delays in customs
clearance, increased risk of errors, and difficulties in data integration
across systems.
3. Document Visibility and Traceability:
Lack of real-time visibility and traceability of logistical documents
poses a significant challenge.
In traditional paper-based systems or outdated electronic systems,
tracking the status and location of documents can be cumbersome.
Limited visibility hampers decision-making, delays problem
identification, and increases the risk of lost or misplaced documents.
4. Regulatory Compliance:
Compliance with regulatory requirements, such as customs
regulations, export controls, and industry standards, is crucial in
logistics.
Maintaining up-to-date knowledge of regulatory changes and
ensuring that logistical documents comply with relevant regulations
is a complex task.
Non-compliance can result in fines, penalties, shipment delays, and
damage to reputation.
5. Document Security and Confidentiality:
Protecting the security and confidentiality of logistical documents is
essential to prevent unauthorized access, tampering, or data
breaches.
Paper-based documents are susceptible to loss, theft, or damage,
while electronic documents face risks such as hacking and malware.
Implementing robust security measures, encryption protocols, access
controls, and data backup procedures is necessary to mitigate these
risks.
6. Integration of Systems and Technologies:
Many organizations use disparate systems and technologies for
managing logistical documents, such as transportation management
systems (TMS), warehouse management systems (WMS), and
enterprise resource planning (ERP) systems.
Integrating these systems to ensure seamless flow of information
and data exchange poses a technical challenge.
Compatibility issues, data synchronization problems, and
interoperability concerns need to be addressed to achieve efficient
document management.
7. Document Retention and Archiving:
Logistics involves a vast amount of documentation, and managing
document retention and archiving is a challenge.
Balancing the need to retain documents for compliance and audit
purposes with the cost and storage constraints requires careful
planning.
Adopting digital archiving solutions and implementing document
lifecycle management practices can help address this challenge.
8. Human Resource Competency:
Effective management of logistical documents requires skilled
personnel with knowledge of document management practices,
regulatory requirements, and technological tools.
Ensuring that employees receive adequate training and support to
handle document-related tasks is crucial.
Staff turnover, skill gaps, and resistance to adopting new
technologies can impede effective document management.
