Enhancing Goods Insurance Claims How 3PLs Can Leverage Digitization of Trips and Lorry Receipts

Every logistics service provider is deeply involved in numerous operational activities and the handling of paperwork. It’s well-known that the logistics industry in India is highly disorganised, making communication between related and unrelated parties chaotic. Establishing a proper sequence of activities becomes challenging if not managed from the outset.

The key to streamlining logistics is to organise communication effectively from the moment a vehicle is requested until it leaves the source location. While large corporations and 3PL/4PL companies manage this through established controls and stable operations, SMEs and small-to-large fleet owners face significant challenges. They rely heavily on fluctuating market demands. So, how do they manage daily activities on a digital platform and ensure that information is readily available when needed?

The above-mentioned issue can be solved through digitization, which organises communication, streamlines operations, and ensures that crucial information is accessible when needed.

But how can you digitise the creation of a Lorry Receipt (LR)?

Small and medium transporters can greatly benefit from an easy-to-use, subscription-based application to generate LR copies digitally, eliminating the need for manual creation. Larger 3PL companies can gain even more by using custom-designed LR forms tailored to their specific needs, ensuring a seamless flow of trips and related information. Applications like the TMS offered by us enable transporters to create LRs online and integrate them with customers for efficient LR tracking.

How is it helpful in tracking ? 

If Lorry Receipt (LR) is digitised and linked to the ERP system 

• Parcel shipment tracking can be simplified through API integration with delivery partners. 
• SIM tracking becomes straightforward as the driver’s phone number is linked to the LR, which can also serve as the tracking number. 
• Proof of Delivery (POD) can be digitised by sending the LR copy electronically, allowing the recipient to sign digitally, providing a secure and verifiable proof of delivery.
• Payment processes are streamlined as well. Many transporters face delayed payments due to discrepancies between trip details, LR information, and PODs. Digitization easily resolves these issues by aligning all data, ensuring accurate and timely billing.

How Digitization of LR will help with Insurance claim management?

As mentioned earlier, many transporters, whether big or small, rely on physical LR copies to obtain proof of delivery, often writing notes and collecting customer signatures and stamps on the back of the physical LR. However, these physical LRs often don’t reach the transporter’s office promptly. Digitising the LR process allows for immediate access to damage and shipment information, enabling faster and more efficient insurance claims for damaged or stolen goods. With all the information centralised, there’s no risk of data loss or delays, ensuring a smoother claims process.

Conclusion 

In conclusion, digitising the Lorry Receipt (LR) process through a robust Transport Management Solution (TMS) offers significant benefits for the logistics industry, particularly for small and medium-sized transporters. By enhancing communication, improving tracking, and ensuring timely access to critical information, TMS not only simplifies daily operations but also optimises payment processes and insurance claim management. Embracing such digital solutions is crucial for overcoming industry challenges and achieving greater efficiency, accuracy, and reliability in logistics operations.