Tag: Undestanding Supply Chain Drivers

International Procurement: Highlights on some essential incoterms

Bangladesh-Bank-data

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 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,…

About International Procurement: Freight Prepaid and related incoterms

Blog-Inco-images-copy

Abstract: “Freight Collect” & “Freight Prepaid” are two shipping terms, which indicate whether consignee has the primary liability to the carrier for the shipping charges in a procurement process. EXW, FCA, FOB, FAS etc Incoterms are used for “Freight Collect” shipment. Now, we would like to discuss about incoterms which can be used for different types of “Freight Prepaid” shipments based on Incoterms 2010 published by ICC. Article: Introduction: Transportation is one of the Drivers of Supply Chain. The term Freight denotes transportation charges. The International Commercial terms or INCOTERMS refers to whether the shipper/consignee responsible to pay the freight or transportation charges. The Incoterms: “Freight Collect” &…

About Logistics: A macro view point

Warehouse

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…

About Supply Chain Drivers:

Introduction: A company can improve supply chain performance in terms of responsiveness and efficiency.It is needed to examine the logistical and cross functional drivers to know about Supply Chain performance. Logistical Drivers are as follows:Facilities, Inventory, Transportation. And following are Cross Functional Drivers: Information,Sourcing,Pricing.…