In the field of logistics and supply chain management, timely delivery of goods plays an important role. It helps you achieve constant business growth. Issuing and managing the delivery challan process helps manufacturing companies in effective inventory tracking and verifying deliveries.
It also makes sure proper implementation of regulations during transportation. However, many SMEs face problems in streamlining the transportation process with dispatch challan. Let’s learn the best practices to manage the delivery note process with TranZact while understanding its components and format.
Understanding The Delivery Challan Process
Delivery Challan, also known as dispatch challan, delivery notes, or DC, is the formal document issued by the supplier to provide all the details of transported goods. Delivery challan process is a method to issue a document that contains the name of the supplier and recipient, delivery date and time, DC number, and description and quantity of goods.
A delivery challan contains all the details of transferred goods, including supplier and receiver details, which can shown as proof in case of theft, damage, or lost conditions. DC documents can be paper-based or digital, depending upon the format of the business requirement.
The purpose of issuing dispatch challan is to have better inventory management, order management, goods delivery verification, record keeping and maintenance, and invoicing and payment. It is issued when goods are shipped to other locations like warehouses or directly to the customers without an invoice. Dispatch challan acts as proof of shipped goods and is used when a company needs to generate an invoice.
Read More: What is Delivery Challan
The Role Of Digital Transformation In Manufacturing
Indian manufacturing SMEs often face problems in managing their supply chain process. One such factor that contributes to supply chain management is delays in issuing dispatch challan. Implementing effective inventory management software can help in digital transformation in manufacturing with the features to automate manual paperwork like generating invoices and other documents.
A delivery challan software can help you streamline your inventory management through the on-time generation of accurate delivery slips. These documents help warehouse managers monitor stock levels effectively while determining the quantity of goods. Automating the delivery challan online also helps you improve quality control by monitoring the condition of goods, keeping records of the supplies, and streamlining the return and replacement process.
The reliable delivery challan software provides a centralized dashboard, which provides transparency of the manufactured goods. You can provide specific access to your employees, stakeholders, and suppliers, which helps to reduce disputes, promote easy and fast approval, and improve CRM (Customer Relationship Management). Digital transformation in manufacturing with DC software helps to generate accurate delivery slips, which act as legal proof of transaction and safeguard both parties with legal matters.
Key Challenges For Indian SME Manufacturers In Delivery Challan Management
The biggest challenge faced by Indian manufacturing SMEs is delayed in product delivery due to unorganised delivery challan process. Lack of automation can cause problems in record keeping, sales management, inventory tracking, and many more, which we have discussed below.
1. Inaccurate Inventory Management
The dispatch slip contains all the details of the goods shipped, including quantity, product description, unit cost, and overall inventory cost. Inaccurate or misplaced delivery challan can cause problems in inventory tracking, which can lead to situations like stockouts or overstocks in a manufacturing business.
2. Delays In Order Fulfillment
The manual dispatch challan process can be time-consuming because each detail needs to be entered manually. Due to such a time-consuming process, manufacturers face delays in order fulfillment, which can create disputes between sellers and buyers and lead to delays in payments.
3. Issues In Tax Regulation
According to Section 31 of the CGST Act 2017, India, the registered manufacturer needs to submit a bill of sale of the taxable goods with all the necessary information. Failing to maintain accurate delivery challan can result in violating tax regulations where Indian SMEs often face penalties, fines, and other legal consequences.
4. Improper Invoice Creation
The manufacturing businesses that don’t have delivery challan software and still rely on manual operation face problems in invoice processing. The manual dispatch process increases the risk of errors, which result in inaccurate invoices and further lead to payment delays, cash flow challenges, and financial inaccuracies.
5. Affect Customer Relationship
Untimely and inaccurate documentation of delivery challan damages the customer relationship. It may cause dissatisfaction and reduce your trust among your clients and targeted customers. It may further reduce the number of recurring customers due to delays in product delivery.
Introducing TranZact: The Solution For Efficient Delivery Challan Management
TranZact helps to speed up the delivery challan creation with its pre-defined format for various platforms like MS Excel, Mircosoft Word, Adobe PDF, Google Sheets, and Google Docs. Instead of investing your precious time in creating DC format from the beginning, you can use these templates to quickly generate delivery slips with standard formats.
TanZact also provides a centralized dashboard where you can monitor your delivery challan process and keep records of various formats. You can easily access the historical delivery slip using a single screen to generate e-invoices and other sales bills. The TranZact delivery challan software also helps you automate the approval process by sharing files through emails and WhatsApp and speeding up your supply chain process.
Read More: Best Practices for Delivery Challan Management
Key Features Of TranZact For Delivery Challan Management
TranZact dispatch challan software offers numerous features, such as easy creation of inward against DC for goods and services and monitoring the list of dispatch slips. Here are the key features of TranZact that make the delivery challan process easy by allowing you to access transactional options in just a few clicks.
- Predefined challan format for Excel, Google Sheets, Google Docs, and many more.
- Delivery challan tracking through all document modules.
- Inward creating against dispatch challan.
- A centralized dashboard is used to monitor drafts and canceled delivery challans.
- Transitional module for easy management of rejected goods.
Key Benefits Of TranZact For Delivery Challan Management
Issuing delivery challan documents not only serves as proof of delivery but also acts as a bridge between sales invoices and actual goods. TranZact software helps streamline the delivery challan process by on-time issuing invoices and providing several benefits to the business, which we have discussed below.
1. Smooth Order Fulfillment Process
TranZact delivery challan software allows the automation of DC creation through a defined template. It plays an important role in achieving a well-executed order fulfillment process and achieving time-sensitive deliveries. One can easily access the records of delivered goods and can quickly create invoices for the assigned customers.
2. Streamlined Inventory Management
Timely dispatch challan creation can help in effective inventory management. TranZact inventory management software provides easy maintenance of delivery documents that are filled with relevant information about transported goods. It helps to improve your warehouse management system by allowing the monitoring of stock levels effectively and preventing the risk of stockouts or stock overflow.
3. Encourage Transparency
TranZact inventory management system provides a centralized dashboard where Indian manufacturing SMEs can easily monitor the delivery challan process. It provides detailed information about goods, including product description, quantity, price of each unit, and overall cost of the consignment. Issuing DC with such information not only speeds up your delivery challan creation process but also safeguards both parties from legal issues.
4. Reduce Disputes
Issuing timely delivery challan with transparency can help reduce disputes related to quantity, quality, and satisfaction with delivered goods. It acts as a common reference point for sellers and buyers and helps solve any issues related to deliveries. TranZact also provides multiple sharing options for dispatch challan through WhatsApp and Email, where you can instantly share your DC with the buyers to improve CRM (Customer Relationship Management).
5. Improve Internal Communication
When it comes to conducting an effective delivery challan process, internal communication between sales, warehouse, and finance departments is important. It ensures everyone stays informed about the latest delivery of goods and performs their respective roles honestly. Digital transformation in manufacturing with TranZact can help you collaborate with all the departments and monitor the performance of the workflow.
6. Easy Returns And Exchange
A well-documented dispatch challan contains all the information on the delivered goods, which acts as proof of the purchase process. It helps Indian manufacturing businesses to effectively handle the returns and exchanges while accessing historical records. One can easily manage the purchase price of the goods and warranty claims to reduce confusion and improve customer satisfaction.
7. Maintains Regulatory Requirement
The delivery challan acts as important evidence for tax purposes, including all GST compliance, and helps in filing returns claiming tax credits. Following the proper delivery challan process can help you to avoid failure in tax compliance. You can easily mitigate the risk of penalties or any other legal consequences.
8. Streamlines Invoicing And Payments
TranZact challan creation promotes accurate invoicing and payment processes. The proper documentation in the delivery challan provides the right price for the delivered products, ensuring the business charges the correct amount. It helps to streamline the invoice process while reducing delays and improving the cash flow.
Step-By-Step Guide To Integrating TranZact Into Your Existing Systems
Digital transformation in manufacturing business can help you streamline the dispatch challan process. It also allows you to access data anytime and from anywhere. Learn the simple step-by-step process to integrating TranZact delivery challan software with your existing system.
Step 1: Establish your goals and objectives for your delivery challan process as per your manufacturing needs.
Step 2: Create an effective implementation plan by forming an ideal team.
Step 3: Choose customizable TranZact delivery challan software that matches DC needs.
Step 4: Transfer your existing data to the new inventory management system.
Step 5: Conduct system testing and validation.
Step 6: Conduct training for your employees to facilitate their understanding of the navigation of the new software.
Step 7: Go live and effectively manage your delivery challan process.
Step 8: Cotinuous monitor the process for improvement.
Conduct Effective Delivery Challan Process With TranZact
Timely production and goods delivery is very important for the growth of a manufacturing company. TranZact helps to streamline your delivery challan process by offering ready-to-use DC templates for various formats such as Excel, PDF, Google Sheets, and many more. These features help in the quick creation of dispatch challans and sharing it through WhatsApp and emails.
TranZact is cloud-based software specially designed for Indian SMEs, which requires fewer resources and infrastructure to implement the software. Choose TranZact now to automate delivery challan process with easy integration with your existing ERP system.
FAQs
1. What Is A Delivery Challan, And Why Is It Important For SME Manufacturers?
A delivery challan is a formal document issued before the transportation of goods. It is important for SME manufacturers because it acts as proof of dispatched goods and safeguards from legal compliance.
2. What Are The Common Challenges Faced By SME Manufacturers In Managing Delivery Challans?
Common challenges faced by SME manufacturers in managing delivery challans are:
- Tracking inventory
- Timely order fulfillment
- Tax regulation issues
- Accurate invoice creation
- Improve CRM (Customer Relationship Management)
3. How Does TranZact Help Digitize And Automate The Delivery Challan Process?
TranZact helps digitize and automate the delivery challan process in the following ways:
- Provide pre-defined delivery challan format.
- Offers easy access to the delivery information.
- Allow easy sharing of delivery challans through WhatsApp and email.
- Encourage fast approval of dispatch slips.
4. Can TranZact Integrate With Existing Systems Used By SME Manufacturers?
Yes, TranZact can be easily integrated with existing systems used by SME manufacturers that take only 14 days in the implementation process and data transfer.
5. Can TranZact Help SME Manufacturers Save Time In Managing Delivery Challans?
Yes, TranZact can help Indian SME manufacturers save time managing delivery challenges through digital transformation and automating the process.
6. How Does TranZact Help In Reducing Errors And Improving Accuracy In Delivery Challan Management?
TranZact can help in reducing errors and improving accuracy in delivery challan management in the following ways.
- Offering industry standard delivery challan template
- Streamlining inventory management
- Improving internal communication
- Minimizing human resources
- Smoothing order fulfillment processReducing disputes
