Self Service Delivery Order (SSDO): Definition, Benefits and Potential Challenges

Self Service Delivery Order (SSDO) in logistics is the process whereby businesses are able to independently manage and execute delivery orders (DO) without direct intervention from the logistics provider.

Put simply, SSDO enables a company to arrange their own onward container transport when it arrives at its import destination, whether that’s through releasing cargo to a third party or continuing with the existing provider.

SSDO takes place towards the end of a container’s journey, and businesses should look to be organising these next steps approximately 5-10 days before a vessel’s arrival.

Benefits of SSDO

When used correctly, the adoption of SSDO can bring a number of benefits for companies that ultimately lead to a more streamlined and efficient supply chain process.

Being able to create and manage delivery orders through an online system means not having to wait for your logistics service provider to do it manually, allowing you to get ahead of the curve.

In doing so, you can be more flexible with your scheduling and arrange onward deliveries when they suit the needs of your end consumer, while monitoring the status and location of your cargo in transit provides enhanced visibility.

Plus, you have instant access to shipping documents, invoices and other important information, and can request or authorise delivery orders at any time.

SSDO is undoubtedly a more simplified and productive way of keeping your cargo moving at import, but caution must be taken to ensure information is submitted correctly, as failure to do so can result in several challenges.

Potential Challenges of SSDO

Within the SSDO system, a business can make errors all the way from inputting incorrect data to uploading incorrect documents – so due diligence is essential throughout the process – but one of the most frequent mistakes is selecting the wrong payer party for a container’s onward journey.

A company needs to assign a payer when a delivery order is created, and traditionally they will have an automated list of Standard Carrier and Vendor (SCV) code options to choose from based on contractual agreements or pre-defined profiles.

A single payer could therefore have a number of different SCV code options depending on their contracts with different carriers or service providers. For example, one of the codes could have access to contracted credit terms, while another – despite being from the same company – would not be associated with a certain shipment and would therefore be assigned to ‘cash’.

So, if a business selects a cash term payer’s code instead of the desired credit term payer’s code, the invoice will be deemed ‘unpaid’ and containers cannot be released until it is settled. This will result in delays for goods reaching their end destination, which could have a knock-on effect on a company’s bottom line.

It's not the only risk associated with selecting the incorrect payer code, as it could also lead to unsettled containers needing to be stored at or around a port and companies bearing the brunt of Detention and Demurrage (D&D) costs. Plus, amending payer details is also typically subject to a fee.

Elsewhere, selecting the wrong payer can expose sensitive rate information to unintended parties, which could be a breach of contractual terms and subsequently a risk to credit availability.

Getting the SSDO process right is therefore crucial behind the functionality and indeed success of a supply chain, so understanding the difference between SCV codes is paramount.

At Maersk, our teams are on hand to discuss any questions you may have about the SSDO system and process, as taking even the simplest of steps in the name of caution can help to avoid unexpected delays on your supply chain.