Techniques in International Commerce
Which components are international transports linked to and why ?
There are 3 components: geography, cargo (volume) and delivery schedule.
International transports are influenced by these components because they determine the most suitable ans efficient mode of transport for a company's needs.
What are the 3 different types of companies ?
1) Industry: they purchase commodities to transform them into goods.
2) Trading: Purchase goods to sell them.
3) Service providers: sell intangible goods (education, consulting, financial services).
Name the 3 flows in international commerce ?
1) Information flow: producers receive the message to produce for customers.
2) Physical flow: producers transfer via transportation the merchandising.
3) Financial flow: either if it's B2C (business to consumer) or B2B (business to business), the financial flow relies on the exchanged money.
According to the 3 flows, what could their risks be ?
1) Political: UK leaving EU: new regulation system where based after the Brexit making the customs checks way more difficult as they changed from the EU's.
2) Transportation: Diesel vehicles won't be allowed to enter big cuties in the future.
3) Financial: currency fluctuation due to changes in custom duties and trade regulations can indeed create financial risks for a country, businesses and individuals.
Define each unit in the logistic system:
1) Procurement: -it elaborates procurement programs
-schedules and launches purchase orders
-manage supplies.
-manage inventories.
2) Manufacturing: -elaborates manufacturing programs
- schedules and launches batches
- manages habdling
-manages ruptures, adjustments and in-process goods.
3) Distribution: -elaborates distribution program
-schedules àd launches distribution to clients.
-manages handling activities.
-manages inventories of finished products.
-manages preparation orders
How does the logistic system works ?
The logistic system works as a loop of flows: information, physical and financial.
To name a few, we have: transportation, handling, purchasing orders.
What are the responsabilities of logistic ?
1) service level measurement.
2) sales forecasts.
3) product range definition, measurement of the impact on storage.
4) definition of the packaging standards for transport and storage.
5) negotiation with the transport partners and selection of them.
6) definition of the loading plan of fg and procurement plan for raw material.
7) definition of allocation optionsfor the storage.
8) management of outsourced stocks: storage partners selection...
9) definition of the logistics needs towards information technology.
What are the 4 fundamentals for a company to succeed ?
1)Company strategy: it defines what market to enter, whether to stay in or exit a market amd how to gain a competitive advantage (Mission, values..).
2) Marketing function: it helps to identifu customer needs, segmenting the market, creating brand strategies and building trust. Your product should solve a problem.
3) Commercial function: It introduces products but also about customer relationship management: finding new customers, managing existibg ones, ending unprofitable relationships and handling contracts, pricing & negotiation.
4) Supply chain: it's about ensuring a cost-effective and efficient flow of materials, from raw materials to final delivery. (sourcibg materials, managing inventory and ensuring on-time deliveries.
What is the first official document receives by the customer ?
The purchass order. It's the first step of approval from bith parties.
What is an invoice ?
It's an accounting document which materializes the financial debt of the purchaser against seller. Its goals are: to probe the existence of a transaction, its amount, allow the payment mechanism and to use it as a fiscal tool.
What is a bill of lading ?
It's a contract of transport.
What does it have to contain ?
The identity of shipper, description of goods & shipping marks and details of the payment and freight.