Final answer:
The bill of lading is a legal document in shipping that represents a receipt of shipment, reflects freight charges, is sent to the customer as proof of shipment, and can be used to control inventory.
Step-by-step explanation:
The bill of lading is an essential document in the world of logistics and shipping. It serves multiple functions, including:
- Reflecting freight charges on goods shipped, which means it details the cost associated with the transportation of goods.
- Acting as a receipt signifying the release of goods for shipment to customers. This indicates that the carrier has received the cargo as described and is obligated to deliver it.
- It is sent to the customer together with the purchase invoice or sometimes separately, to prove the goods are en route or have been shipped.
- Used by some businesses to control inventory, as it provides a record of the goods shipped and can be matched against inventory numbers.
Bill of lading documents are crucial for businesses engaged in international trade and are subjected to standardized practices worldwide to facilitate global trade.