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    Inbound Logistics

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    fernandezrommel400

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    © All Rights Reserved
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    Inbound Logistics

    Uploaded by

    fernandezrommel400
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    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    5 views25 pages

    Inbound Logistics

    Uploaded by

    fernandezrommel400

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    LOGISTICS AND

    TRANSPORTATION

    INBOUND
    LOGISTICS
    PRESENTED BY : GROUP 5
    LOGISTICS AND
    TRANSPORTATION

    WHAT IS INBOUND
    LOGISTICS
    Inbound logistics is the
    transportation, storage, and
    receipt of goods into a
    business. It is about purchasing
    goods for the office or the
    production unit.
    LOGISTICS AND
    TRANSPORTATION
    IMPORTANCE OF
    INBOUND
    -
    LOGISTICS
    Despite the importance of
    inbound logistics, many
    businesses overlook it.

    - An efficiently managed
    inbound logistics program can
    result in higher-quality
    products, cost savings, and
    increased in revenue.
    LOGISTICS AND
    TRANSPORTATION

    INTERNATIONALPURCHASING
    It is the process of allowing
    consumers and businesses to
    buy products from other
    countries in order to execute
    and maintain their
    operational activities under
    the most favorable
    conditions.
    LOGISTICS AND
    TRANSPORTATION
    - Lack of raw materials: If the materials cannot be
    manufactured locally, buyers may be forced to
    transport abroad to obtain them.

    - Production Characteristics: Customers may choose


    to acquire from an international source if local
    providers are unable to meet these expectations.

    - Level of Quality: Satisfying the wants and


    expectations of the client is the foundation of quality.

    ADVANTAGES OFINTERNATIONAL PURCHASING


    LOGISTICS AND
    TRANSPORTATION

    -Shipping operations are becoming more difficult


    due to increased distance and time and the
    necessity of crossing international borders.

    - The supply chain management process can be


    difficult.

    DISADVANTAGES OFINTERNATIONAL PURCHASING


    LOGISTICS AND
    TRANSPORTATION

    GLOBALOUTSOURCIN
    - Is the process
    G of acquiring a third-
    party service provider in another
    country to delegate a specific
    business process. This outsourcing
    can bring clients a better benefit,
    such as;
    • better risk mitigation
    • flexibility in operations
    • and better innovation
    GLOBALOUTSOURCING
    STRATEGY
    - The Global outsourcing service
    providers use the global delivery
    model (GDM) to divide a company's
    assets and functions.

    LOGISTICS AND
    TRANSPORTATION
    LOGISTICS AND
    TRANSPORTATION

    GOOGLE AMAZON ALIBABA

    GLOBAL OUTSOURCING
    EXAMPLES
    LOGISTICS AND
    TRANSPORTATION

    DOMESTIC OUTSOURCING

    GLOBAL OUTSOURCING
    LOGISTICS AND
    TRANSPORTATION

    INTERNATIONAL
    TERMS (Incoterms)
    COMMERCIAL
    -Are a set of 11 individual rules
    issued by the International
    Chamber of Commerce (ICC) which
    define the responsibilities of sellers
    and buyers for the sale of goods in
    international transactions.
    LOGISTICS AND
    TRANSPORTATION

    UNDERSTANDING
    INCOTERMS
    - Differences in trading practices and
    legal interpretations between traders
    of different countries necessitated a
    common set of rules. These rules
    needed to be easy for all participants
    to prevent misunderstandings,
    disputes, and litigation.
    LOGISTICS AND
    TRANSPORTATION

    CLASSIFICATION
    OF
    INCOTERMS
    - These 11 Incoterms are divided into
    four groups (E, F, C, and D) and two
    classes (sea/inland waterways
    transportation and any mode of
    transportation).
    LOGISTICS AND
    TRANSPORTATION
    LOGISTICS AND
    TRANSPORTATION

    INCOTERMS FOR ANY


    MODE OF TRANSPORTATION
    1. EXW: Ex Works
    2. FCA: Free Carrier
    3. CPT: Carriage Paid To
    4. CIP: Carriage and Insurance Paid To
    5. DAP: Delivered at Place
    6. DPU: Delivered at Place Unloaded
    7. DDP: Delivered Duty Paid
    LOGISTICS AND
    TRANSPORTATION

    INCOTERMS FOR SEA AND


    INLAND WATERWAYS TRANSPORTATION
    1. FAS: Free Alongside Ship
    2. FOB: Free on Board
    3. CFR: Cost and Freight
    4. CIF: Cost, Insurance, and Freight
    LOGISTICS AND
    TRANSPORTATION

    INDICATING
    2020 RULE USAGE
    INCOTERMS
    Because the ICC regularly updates
    Incoterms, contracts should specify
    which version they are using (e.g.,
    Incoterms 2020). The documents
    should state the chosen Incoterm
    followed by the named port, place or
    point and which set of Incoterms
    rules they are using.
    LOGISTICS AND
    TRANSPORTATION

    HERE ARE TWO


    EXAMPLES:
    - CIF, Shanghai, Based on Incoterms®
    2020 Rules.

    -DAP, No. 123, ABC Street, Importland,


    Based on Incoterms® 2020 Rules.
    LOGISTICS AND
    TRANSPORTATION

    ADVANTAGES AND
    Pros
    OF
    DISADVANTAGES
    INCOTERMS
    •Easily understood terms
    •International standardization
    •Updated and clarified by an international body
    (ICC)

    Cons
    •Differences between buyer and seller preferences
    when choosing terms
    •Certain terms expose one party to inflated costs
    LOGISTICS AND
    TRANSPORTATION

    DOCUMENTARY
    CREDITS
    A method of payment where the
    bank agrees to pay the beneficiary of
    a document credit transaction, the
    price of goods
    87% or services within a
    predetermined
    Target time frame
    LOGISTICS AND
    TRANSPORTATION

    DOCUMENTS USED IN
    DOCUMENTARY CREDIT
    •Bill of Lading
    •Commercial Invoice
    •Insurance Policy
    •Certificate87%
    of Quality
    •CertificateTarget
    of Origin
    •Letter of Hypothecation
    Certificate of weight
    LOGISTICS AND
    TRANSPORTATION

    TYPES OF 87%
    DOCUMENTARY CREDIT
    Target

    - The Irrevocable Documentary Credit


    - Irrevocable Documentary Credit
    - The Notified Documentary Credit
    -The Confirmed Documentary Credit
    LOGISTICS AND
    TRANSPORTATION

    MAIN PARTIES INVOLVED IN


    DOCUMENTARY CREDIT

    - The Importer
    - The Importer’s Bank
    - The Exporter
    - The Exporter’s Bank
    LOGISTICS AND

    ISSUANCE AND NOTIFICATION TRANSPORTATION

    OF
    THE DOCUMENTARY CREDIT
    THANK YOU!
    Members:
    BALTAR, LHEYELLA ROSE D.
    DELMO, RALPH JOSHUA B.
    MEDINA, JOAN L.
    PAREL, JELLYN ROSE G.
    PASILAN, CINDY JOY B.
    PELAGIO, ERWIN J.

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