Logistics

Why it matters

Everything upstream can be right and the customer still only sees the delivery. It is also the step that produces the evidence billing depends on.

• It creates the billing trigger: Proof of delivery is what makes an order invoiceable.
• It is a visible cost: Freight is measurable per order, and often unmeasured per customer.
• Returns erode margin quietly: Reverse logistics is rarely costed and almost never allocated.

The workflow

1. 01

   Route planning

   Loads consolidated and sequenced against delivery windows and vehicle capacity.

2. 02

   Transportation execution

   Dispatch, carrier allocation and documentation.

3. 03

   Delivery tracking

   Status visible to the customer and to the people who will be asked.

4. 04

   Return processing

   Goods received back, inspected, dispositioned, and the revenue and stock reversed.

Capture proof of delivery in a form the system can act on. A signed paper docket in a driver's folder is evidence that delivery happened and no trigger for the invoice that should follow it.

What you need in place

• Delivery windows as data: Customer requirements the plan can respect.
• Carrier rates in the system: So freight cost is known per shipment rather than reconciled from invoices.
• Proof of delivery captured electronically: Triggering billing automatically.
• Tracking the customer can see: Or your service desk becomes the tracking system.
• A returns process with dispositions: Restock, repair, scrap — each with its accounting.
• Freight cost allocation: To customer and product, or profitability by either is wrong.

Questions to ask

Metrics and KPIs to track