Tales from the Trenches: Delay due to DAP versus DDP

It shouldn’t have been this way.

We used UPS International Express service to get the material to our Romanian plant in time for the build date.

UPS offers a great service and we had all the confidence in the world that we would be fine.

Then the calls started from our team in Romania.

They had spoken with the local UPS office and the package was still in the hands of the Romanian Customs officials!

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The documentation had not been completed correctly.

Our team at the origin facility entered the shipment into the UPS system as “DAP Ghiroda, Romania” (“Delivered at Place”), but the commercial invoice stated that the transaction was “DDP Ghiroda, Romania” (“Delivered Duty Paid”). See below:
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Within the UPS.com application, there really is no “DAP” or “DDP” button, but it is evident from the drop-down menus (see below).

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Our team at the origin facility selected “2” instead of “1”.

This caused the one day delay and jeopardized our commitment date to our customer.

The lesson is that all documents need to be consistent: if the commercial invoice says DDP, then everything must comply with DDP.

It is also important to understand your incoterms, which I believe are the basis for all we do in logistics. Those incoterms set the “start” and “stop” point for everything we do.

Good luck!

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About Lenny

Many years of experience in a Fortune 1000 companies, especially in the logistics and I.T. areas of manufacturing companies. Through process improvements and the use of many of the tools mentioned here, I have been able to identify and implement savings opportunities worth up to $10 million. I hope that some of these real-life stories, suggestions and tools can help you!
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