Compliance in Supply Chain Management: Why Retailers & Suppliers Are Struggling

At RILA LINK 2025, shippers, retailers, and suppliers voiced the same urgent concern—paper-based freight documentation is failing the supply chain.

Lost documents, compliance failures, fraud risks, and operational inefficiencies are driving up costs and increasing disputes. This isn’t just an inconvenience—it’s a systemic liability that exposes all shipment parties—shippers, suppliers, and transportation companies—to financial losses from fraud and claims.

Inbound Freight Is a Compliance Nightmare

Retailers expect suppliers and carriers to follow strict documentation and supply chain compliance standards, but inconsistent freight documentation across vendors creates a supply chain compliance disaster.

• Mismatched paperwork leads to delays, disputes, and invoice discrepancies.
• Chargebacks, detention fees, and penalties pile up when suppliers can’t provide accurate, timely documentation.
• Manual document processing leaves room for errors and lost records.

Without a standardized digital system, shippers are left untangling incomplete or incorrect paperwork long after the freight has been delivered, delaying payments and increasing costs.

Strategic Cargo Theft & Fraud Are Surging

Cargo theft is not just opportunistic—it’s strategic. Criminals are leveraging weaknesses in freight documentation to exploit vulnerabilities in the supply chain.

A 2024 Willis Towers Watson report warns that high-value shipments are at increasing risk, with fraudsters using forged or altered Bills of Lading (BOLs) to reroute, steal, or tamper with cargo. These schemes are sophisticated, targeting weaknesses in paper-based records that can be easily manipulated. (wtwco.com)

Meanwhile, the U.S. Senate Subcommittee on Freight Fraud recently convened to address the rise in cargo theft, fraudulent pickups, and manipulated shipping documents. Criminals forge carrier identities and alter BOLs to make fraudulent pickups, often going undetected for months until payment disputes arise. (thetrucker.com)

The cost of cargo theft in the U.S. exceeded $223 million in 2023, with the logistics sector seeing record-high fraud cases. Fraudsters are exploiting manual documentation processes to carry out large-scale theft operations.

Drivers & Document Scanning Are Compliance Loopholes

Many companies assume that scanning paper BOL documents downstream solves supply chain compliance issues, but in reality, it creates delays, data breaches, and compliance failures.

• Scanned records are often uploaded too late to prevent compliance violations.
• Tampered documents go undetected without secure digital authentication.
• Shippers lose visibility, leading to disputes and costly errors.

If records exist only on paper, supply chain compliance is compromised. Reliance on manual scanning and delayed uploads increases fraud risk and eliminates the ability to track issues in real time.

The Cost of Outdated Supply Chain Management Processes

The financial impact of paper-based freight documentation is staggering:

• The industry loses over $6.5 billion annually due to manual processing inefficiencies. (mckinsey.com)
• Paper-based trade documentation increases customs delays and logistics costs, with estimates that at least 1% of transactions in the global trade financing market, or around $50 billion per year, are fraudulent. (insurancejournal.com)
• Freight fraud and disputes cause millions in annual losses, leaving shippers, suppliers and transportation companies with unresolved financial liabilities.

Manual processes create blind spots in supply chain visibility, delaying payments, increasing disputes, and reducing operational efficiency. Paper isn’t just slowing down the industry—it’s actively costing businesses millions.

The Shift Toward Digital Compliance in Supply Chain Management

Retailers, suppliers, and transportation companies are recognizing that modernizing freight compliance is critical to reducing risk, increasing efficiency, and ensuring accountability. To achieve this, industry leaders are aligning to establish standardized digital documentation practices, ensuring seamless connectivity across the supply chain.

The National Motor Freight Traffic Association (NMFTA) recently launched the Digital Full Truckload Council, bringing together major shippers, carriers, and logistics providers to drive digital freight documentation adoption. This initiative aims to eliminate inefficiencies, combat freight fraud, and enhance supply chain security through standardized digital connectivity. (nmfta.org)

A broader global push for digital trade documentation is already in motion, with industry groups advocating for full-scale digital adoption to resolve supply chain disruptions. (pymnts.com)

For true modernization, shippers, suppliers and transportation companies must work together to implement unified digital compliance solutions that comply with relevant regulations. driverDOC’s Pulse Platform bridges supply chain compliance gaps, ensuring a secure, transparent, and fraud-resistant digital framework for all stakeholders—from manufacturers to last-mile carriers. Companies that embrace digital transformation will gain real-time visibility, faster invoicing, and lower supply chain compliance risks, while those that delay will face mounting inefficiencies, financial losses, and operational disruptions.

driverDOC’s Pulse Platform: Modernized Supply Chain Connectivity

driverDOC provides a fully digital, connected and modernized BOL compliance framework that eliminates manual freight documentation failures and fraud exposures.

• Real-Time Digital Proof of Delivery (POD): No lost paperwork or waiting for updates.
• Automated Shipment Compliance Tracking: Increases supply chain transparency while reducing fraud and claims.
• Seamless Integration: Works with TMS, ERP, and WMS platforms to eliminate data gaps.
• Fraud Prevention Through Digital Authentication: Ensures accuracy from pickup to final delivery.

Shippers that transition to digital BOLs gain faster invoicing, fewer freight disputes, and reduced compliance in supply chain risks. Those who don’t will face rising costs, compliance failures, and increased fraud exposure.

The Industry Is Moving—Don’t Get Left Behind

Companies that fail to digitize will struggle with:

• Rising operational costs from inefficiencies
• Increased fraud risk from altered and stolen BOLs
• More chargebacks and vendor penalties for compliance failures

Digital transformation is no longer optional—it’s a competitive necessity. The future of supply chain management success depends on seamless eBOL connectivity and industry-wide collaboration.

Are you ready to embrace modernized BOL connectivity?‍

Contact us today to learn how driverDOC can help you transition to a paperless, secure, and efficient logistics operation.