As a logistics service provider, you ended up paying a shipper or consignee for a cargo damage claim or loss of cargo that you could not fend off. Then, what did you do? Told your handling teams to start to take photos and report damages as material comes in?

You might spend a lot of time collecting photos on WhatsApp, e-mail, or file-share. It doesn’t feel quite right, does it?

Basically, what you are doing is creating a Proof of Condition (“PoC”) of cargo; however, to make this process consistently useful, I recommend you implement the following three tips:

1. Your cargo logistics process

A good proof of condition starts with the most challenging part: your process. Unfortunately, there is no single process that fits all situations. But if you adapt your process closely to the risks involved in the specific supply chain, you’re well along. This requires a good understanding of your role in supply chain management.

Collecting proof of condition, you need to focus on where you receive goods and when they are handed over to the consignee (or their carrier) – outbound. It is important to capture PoC’s in both activities and recognise if you need to look for different things.

• Inbound PoC 
  
  

With a “Receiving PoC,” you record the state of the goods as they arrive or are handed over by the shipper or their carrier. Focus if there is damage and other non-conformities. You must take action if the cargo is damaged or in a problematic condition.

Nonetheless, cargo damage is a broad term. If the material has become wet, and you are handling bricks, this may not be an issue. However, if it happens to be paper? This may be acceptable in some cases (e.g., some industrial goods), but are you sure the cargo itself is still in good order? 

The “better safe than sorry” approach is a good way to handle such situations. Let the cargo owner know about the state of the goods and any deviations you’ve observed. After all, they know their requirements like no one else.

• Outbound PoC
  
  

You take photos showing the cargo leaving in presumably good condition. In this phase, it is essential to show the cargo in a comprehensive view. A picture of an undamaged left side of a box will not protect you from a cargo damage claim that happened on the right side.

If you are moving food goods or even raw materials that are used in steel manufacturing, it may be required to transport material in a clean and dry truck or container. In that case, gather evidence that you inspected the transportation means before loading the cargo. 

Also, what do you want your staff to do when they see a non-conformity? Usually, it will not suffice to take a picture and store it somewhere. You must do something about the situation, such as informing the cargo owner.

2. Train to obtain quality cargo control



Nowadays, people take pictures all the time. So why would you explain to your staff how to take a cargo photo? Well, I’ve seen what happens – you get all black or blurred images or even people in the pictures. To prevent rework, train your team how to take pictures of cargo properly and from all angles.

3. Manage your Proof of Condition process

Create a structured process for your PoC documentation and store it as long as your potential liability lasts.

• Link your records
• Store and backup
• Consider using CargoSnap to store and handle your inspection records. This helps create an objective case and removes the nitty-gritty of storing and managing the wealth of information being collected.

Want to know more about creating the perfect proof of condition plan for your inbound and outbound logistics processes?