Abstract: Incoterms are last amended by ICC on January 01, 2013.Some essential incoterms are highlighted below: The incoterms EXW can be defined as an agreement between a buyer and a seller that after production completed and left warehouse of the seller, seller is not responsible for cost and liability for the product. Incoterms FOB and EXW can be used interchangeably while consider terms and agreement between buyer and seller.Seller is not responsible for loading the goods unless specified otherwise and buyer is responsible for doing insurance for EXW shipments under the buyer’s Ocean Cargo Policy.Free Carrier While using the incoterm FCA , the Seller agrees to give delivery of the goods into the custody f the forwarder, freight forwarder etc.Free on Board(Named port of shipment) The incoterm FOB is from thepoint of delivery of goods and transfer of risk, it starts with the goods pass the ship’s rail at the named port of shipment. Except CIP and CIF , incoterms do not have any obligation on the Seller and Buyer to provide insurance. Keywords: Freight collect, Incoterms,EXW, FCA, FOB Article: Introduction: Incoterms are nothing but some International Commercial terms published by the International Chamber of Commerce to clearly communicate the associated risks, costs, tasks, etc. evolved with international procurement and logistics. Which are widely accepted by legal authorities, governments, and involved parties with the commercial transactions. Incoterms usually help to reduce […]
Tag: Undestanding Supply Chain Drivers
About procurement: Freight Prepaid related incoterm based on ICC amend. 2020.
Abstract “Freight Collect” & “Freight Prepaid” are two shipping terms, which show whether a consignee has the primary liability to the carrier for the shipping charges in a procurement process. EXW, FCA, FOB, FAS, etc Incoterm used for “Freight Collect” shipment. Now, we would like to discuss Incoterm which can be used for different “Freight Prepaid” shipments based on Incoterm of Sept 2019 published by ICC, also called 2020 amendment of incoterm. Keywords: International Procurement, Freight Prepaid, Freight collect, Incoterm, ICC, Amendment 2020. Article Introduction Transportation is one of the Drivers of the Supply Chain. The term Freight denotes transportation charges. The International Commercial Terms or INCOTERMS refers to whether the shipper/consignee […]
Supply Chain Security and business management: An overview
Abstract: Standard supply chain security arrangements include: creating credentials of participants in the supply chain, finding, validating contents of cargo being shipped, notification of the contents in advance to the destination country, ensuring the security of cargo in transit using lock and other professional means, creating opportunity to inspect the cargo at an entry to the destination country etc. C-TPAT […]
Understanding Revenue Management in a Supply Chain Management Perspective:
Abstract: Revenue Management is the use of pricing to increase profit, although supply is limited in a supply chain asset. To increase the profit margin Supply Chain Managers must use all the levers available, including price. Ideas from revenue management suggest that firstly managers should use pricing as a lever, then they can proceed with the increase or eliminate assets. […]
A discussion about Inventory optimization: Use of IMAFS software
Abstract: IMAFS helps knowledge gathering areas, such as, solution oriented and stock availability management, best practices in inventory management, support from experts, evolution of ROI before implementation and simplify integration, proven and rigorous implementation methodology using cloud/SAAS mode, continuous improvement with R&D, and user-friendly, integration manual parameters also. A poor delivery performance can affect consumption history.A consumption itself does not […]
About Logistics: A macro view point
Abstract Logistical operational responsibilities include delivery of goods between suppliers, transporters and company users /customers. For instance, we can say that in the apparel supply chain of Bangladesh, we usually see that inbound goods come to manufacturing facility by the transporters and warehouse assistants receive the cargo, which is provided according to suitable lot size using suitable containers by sea or by air according to urgency of manufacturing needs to fulfill customer requests. Finished goods are loaded to containers per customer request in suitable lot sizes, so that buyer can collect and market the goods in an organized and suitable way.A macro view of logistics Logistical management function may entail some more steps, i.e., locating potential suppliers, determining their accessibility in terms of business production, and forming relationships. If the business operation is size-ably voluminous enough to outsource online operation logistics, in that case the business has to sync their platform with the third party partner. As we know, in a supply chain management, logistics and transportation are intertwined. For e-commerce companies, chat-bots can be employed to avail customers with fundamental queries such as tracking a shipment. Keywords: Supply chain management(SCM), Logistics, suppliers, transporters etc. Introduction: The term logistics refers to providing right amount of […]
A discussion on Lean, Six Sigma and Kaizen in the context of manufacturing :
Abstract The popular definition of Lean Manufacturing and the Toyota Production System conventionally consists of the following: To solve the quandary of waste, Lean Manufacturing has The TPS is often used interchangeably with the terms Lean Manufacturing and Lean. Even more importantly, a Lean process is characterized by Lean and the Toyota Production System. The main reason of Lean Manufacturing or TPS is every step of manufacturing should be improved. Lean manufacturing involves never ending efforts to eliminate or reduce “Muda“, a Japanese term used to reduce waste, which does not add value to Supply Chain while make design, manufacturing, distribution and customer service processes in the respective Supply Chain. Things are visually displayed: For communicating with all sorts of people in the factory /supply chain unit visual displays are used as a great tool in the lean manufacturing process.Some techniques used in Lean Manufacturing to eliminate errors of the equipment operator. Keywords: TPS,Muda,Lean, 5s,Six Sigma etc. Introduction: Lean manufacturing is a synchronized method with which a supply chain can eradicate waste from its production process. According to customer needs, production process is required to develop, so that produced goods become more valuable product in quality. In contemporary manufacturing many supply […]