What Is Bill of Lading (BOL)?
Also known as: BOL, B/L, straight bill of lading
Definition
A bill of lading (BOL) is the document a carrier issues to confirm it received goods for shipment. It acts as a receipt, a contract of carriage and, in some forms, a document of title. ERPs print it from the shipping transaction.
Bill of Lading (BOL) Explained
The BOL lists shipper, consignee, carrier, piece counts, package types, description of goods, weights, freight class and special instructions. The driver signs it at pickup, and the consignee signs it at delivery. It is the primary evidence in a freight claim.
A straight BOL is non-negotiable and names the consignee. An order BOL is negotiable and used where title transfers against payment, typically in international ocean trade. An ocean bill of lading and an air waybill play the same role for their modes.
ERP shipping modules assemble the BOL from packed shipments. In SyteLine, the shipping and packing slip functions produce shipment documents and carry carrier and weight data. Infor LN outbound procedures and NetSuite item fulfillment can generate BOL forms, often through templates or a connected transportation system.
Accuracy matters. Wrong freight class, weight or piece count leads to carrier reweigh charges, called reclasses, and delays at the dock. Hazardous materials need the correct proper shipping name and UN number.
Why It Matters
- It is the legal and evidentiary record if freight is lost or damaged.
- Wrong class or weight on the BOL triggers carrier adjustments that eat margin.
- Customers and retailers often require specific BOL formats and reference numbers.
- Hazmat and export shipments need exact data to stay compliant.
In Practice
A shipper lists four pallets as freight class 70 at 1,800 lb. The carrier reweighs and finds 2,350 lb with dense packaging that qualifies for a different class. The invoice is adjusted upward. Pulling actual packed weights from the ERP packing step into the BOL avoids the mismatch.
Frequently Asked Questions
What is the difference between a BOL and a packing slip?
A packing slip tells the customer what is in the box. A BOL is the carrier document that records what was handed over for transport and under what terms.
Who signs a bill of lading?
The shipper or its agent prepares it, the carrier driver signs at pickup, and the consignee signs on delivery, noting any damage or shortage.
Can an ERP generate a BOL automatically?
Yes, most ERPs can print one from shipment data, though many companies use a transportation or shipping tool for carrier-specific formats and labels.
Related Terms
Advance Ship Notice (ASN)
An advance ship notice (ASN) is an electronic message a supplier sends before a shipment arrives, listing what is on the truck, how it is packed and how it is labelled. In EDI it is transaction set 856.
Packing List
A packing list, also called a packing slip, is a document that itemizes what is in a shipment: items, quantities, package counts and references. It travels with the goods and lets the receiver check contents without opening an invoice.
Incoterms
Incoterms are standard trade terms published by the International Chamber of Commerce that define who arranges and pays for transport, insurance and customs, and where risk passes from seller to buyer. Examples are EXW, FOB, CIF, DAP and DDP.
Third-Party Logistics (3PL)
Third-party logistics (3PL) means outsourcing warehousing, transportation or order fulfillment to a specialist provider. The manufacturer's ERP stays the system of record for orders and cost, and exchanges inventory, shipment and receipt data with the 3PL.
EDI (Electronic Data Interchange)
EDI (Electronic Data Interchange) is the computer-to-computer exchange of business documents such as purchase orders, invoices, and shipping notices between trading partners in a standardized structured format, without human intervention.
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