Laura Frederick’s Post

Free on Board Shipping point or FOB Shipping assigns the liability and the payment for a shipment to the buyer. The transfer of responsibility occurs as soon as the inventory arrives at the shipping point and gets loaded into the vehicle. After the transfer, the buyer logs the transaction as a sale and notes the increase in their inventory. The buyer pays for all shipping costs with FOB shipping. Aside from the transport expense, they are also liable for any damages that may occur during shipping. In this agreement, buyers are responsible for filing claims on damaged freight since they hold the title and ownership of the inventory. For instance, when Retailer A signs a FOB shipment agreement with International Manufacturer B for inventory, the inventory ownership transfers once the shipment reaches the delivery vehicle. In most international transactions, the differentiation is usually at a port. If one piece of inventory breaks during transport, Retailer A is responsible for the damages even if the parcels haven’t reached their storage facility. 📌And more on (zhenhub.com) web 📌https://lnkd.in/eQddmWAw

Did you know that an accessorial fee can be applied on your shipment if special conditions are not met? 🤔 Find out details about #insidedelivery fee now! 👇 Read more with us: https://lnkd.in/dnsAqPkx #fourturrets #deliveryfees #insidedeliveryfee #internationaltrade #globalsupply #supplychain

What is 2 way, 3 way and 4 way matching? Making payments to the suppliers in 3 ways. whatever you have ordered for the PO we will make the payment for the suppliers 1) 2-way(we will compare two documents PO and Invoice). Eg: Suppose we Had given PO for 100 items ,for that we will receive invoice for 100 items. so that we will make payment for that 100 items. 2) In 3-Way we will compare 3 documents PO+reciept+Invoice Eg:Suppose we have ordered 100 items in PO. But we had received only 80 items, But we had received invoice for 100 items. so, we will make payment for only 80 items 3) IN 4-Way we will compare 4 documents       PO+Receipt+Invoice+Inspection Eg: Suppose we have 100 items in PO. Suppers send us 80 items We will do inspection on those items what ever we have received, If 10 items got damaged. finally, we are going to make payment to the 70 items only.

Here are definitions for each of these logistics and supply chain management terms: #FAD - Free Alongside Ship 1. Definition: FAD is an Incoterm (International Commercial Term) that requires the seller to deliver goods alongside the vessel at the named port of shipment. 2. Responsibility: The seller is responsible for loading the goods onto the vessel. #RAD - Route Assessment and Development 1. Definition: RAD refers to the process of evaluating and optimizing transportation routes to improve efficiency, reduce costs, and enhance customer satisfaction. 2. Objective: The goal of RAD is to identify the most effective and efficient routes for delivering goods, taking into account factors such as traffic, road conditions, and delivery time windows. #FOFD - Free On Floor Delivery 1. Definition: FOFD is a delivery term that requires the carrier to deliver goods to the consignee's floor or loading dock, but not necessarily to a specific room or location. 2. Responsibility: The carrier is responsible for delivering the goods to the designated floor or loading dock. #FAP - Free At Place 1. Definition: FAP is an Incoterm that requires the seller to deliver goods to a named place, where the buyer takes responsibility for unloading and clearing customs. 2. Responsibility: The seller is responsible for delivering the goods to the named place. #RVP - Return Vendor Process 1. Definition: RVP refers to the process of returning goods to the vendor or supplier, typically due to defects, damage, or non-compliance with specifications. 2. Objective: The goal of RVP is to efficiently and effectively manage the return of goods to the vendor, minimizing costs and improving relationships with suppliers. These terms are commonly used in logistics, supply chain management, and international trade to clarify responsibilities, terms, and conditions of delivery and return.

A Debit Note is typically used for returning goods. This occurs when goods are purchased from a supplier, but they do not meet the requirements or the original purchase order. After placing the purchase order, the supplier sends the goods along with an invoice within a certain period. Upon receiving the goods, the company must inspect them. If any discrepancies or issues are found, the company may return the disputed goods to the supplier by issuing a Debit Note. When creating a Debit Note, there are several important points to keep in mind: The company must mention the Debit Note number. The corresponding Purchase Invoice number, from which the goods were purchased, should also be mentioned. The invoice date must be specified. If relevant, include the motor vehicle number and the Ewaybill number. After the goods are returned, the supplier should issue a Credit Note against the Debit Note.

what's the delivery note? A delivery note is a document that accompanies a shipment of goods. It provides a list of the products and quantity of the goods included in the delivery. A delivery note is also known as a ‘dispatch note’ or a ‘goods received note. *************************************** What is the purpose of a delivery note? 1- can be used as a checklist by your customer to ensure that everything’s there. 2- It also describes whether any goods in the original order are not enclosed - thereby providing an overview of what the recipient has ordered and what has been sent in that particular delivery. In some cases, a copy of the delivery note is signed by the recipient and then returned to the seller or consignor as proof of delivery. This is then known as ‘recorded delivery’ or ‘signed for delivery’. **************************************** What should a delivery note show? The delivery note must therefore show: 1- The name and contact details of the seller 2- The name and contact details of the customer 3- The date of issue 4- The date of delivery 5- A description of the goods contained in the order 6- The quantity of each product included in the shipment. The delivery note may also optionally require the receiver’s signature (or stamp) which confirms the delivery was received. #warehouse_management #inventorycontrol #inventory_management #WMS #WAREHOUSING #DELIVERYNOTE

Sender Pays vs Receiver Pays There are four (4) main ways to deal with shipping costs: 1.      Sender Pays for all shipments 2.      Receiver Pays, nominating their carrier account to the sender prior to shipping 3.      A mixture of sender and receiver pays, depending on order value 4.      Sender Pays but recovers the freight cost via a freight charge on the invoice. Problems with Receiver Pays - If carrier can’t bill the receiver, then legally the carrier can bill the sender - Fixing this leads to Admin fees and takes time & resources - Receiver Pays freight reduces shipping volume, leading to higher rates - Receiver pays means more carriers / trucks picking up; operational issues Freight Cost Recovery The best of both worlds: _ High value customers receive complementary freight; - Smaller customers – pass on the actual cost of shipment quickly & easily - Often your fees are lower than theirs - Our TMS 2Ship automatically & accurately prices your shipments, with live rates, including surcharges. Conclusion Using Senders Pays with an effective freight recovery policy you can: - streamline your shipping process, - improve your freight cost purchasing power, - and offer a better service through more efficient shipping. #freightcosts #shippingsolutions #logistics

Our team delved into our client's GPO spend, leveraging our expertise in shipping pricing and marketplace trends. We assessed their rates at 3.2 out of 4, pinpointing key areas for enhancement. It became evident that their rates didn't align with their ground shipping needs, leading to underutilized custom rates due to incentives and minimum charge discrepancies. Explore the insightful findings and solutions in our latest case study: #Shipping #SupplyChain #CostReduction

Long-Term Thinking 💡 ⚖ 📅 Story Time: A brand we are partnered with was having a dispute with their supplier after receiving their last order. They claimed the total qty received was slightly less than what had been invoiced and the supplier denied this as a possibility, even going so far as to check the factory CCTV footage of the packing and loading of the order to support their side. While the dollar amount being disputed was quite low, the buyer in all fairness should be allowed to dispute any discrepancies between invoice and goods received.  The problem is, that these discussions or arguments will almost always have a negative impact on the relationship between buyer and supplier. It's important to evaluate the cost of both options. On the one hand, allowing errors to pass will cost some money, and give the impression to the supplier that you aren't aware of what does and doesn't land in your warehouse. On the other hand, nitpicking and arguing with a supplier over relatively small matters will make you gradually end up at the bottom of the supplier's priority list.  The most difficult customers will end up with the worst service. When a factory is experiencing extended lead times and they need to postpone production on some orders, guess whose orders are the first to be postponed? Not their favorite customers, that's for sure. My advice: Politely but firmly inform the factory of the issue and request they look into it. If they support your claim and offer to replace the missing units on the next order, great. If not, consider letting it slide and informing the factory that you are agreeing to do so in an effort to maintain a solid relationship with them. It's a short-term loss for a long-term gain. #supplierrelations #manufacturing #procurement #productsourcing #globaltrade #supplychain