11 th Global Supply Chain and Logistics Summit 28 Nov 2018 - - PowerPoint PPT Presentation

11 th global supply chain and logistics summit
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11 th Global Supply Chain and Logistics Summit 28 Nov 2018 - - PowerPoint PPT Presentation

Presentation Title Trade-Logistics interfaces and related challenges Presented by: Krishnan Subramaniam FICS Head of Projects Fusion group of companies President ICS Middle East branch 11 th Global Supply Chain and Logistics Summit 28


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28 Nov 2018

11th Global Supply Chain and Logistics Summit www.sclgsummit.org

Presentation Title

Trade-Logistics

interfaces and related challenges

Presented by:

Krishnan Subramaniam FICS

Head of Projects – Fusion group of companies President – ICS Middle East branch

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28 Nov 2018

11th Global Supply Chain and Logistics Summit www.sclgsummit.org

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28 Nov 2018

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Interfaces in International Trade

Merchant - Carrier Seller - Buyer Insurer - Assured

Contract of Sale Contract

  • f

Insurance Contract

  • f

Carriage Customs Clearance

Export-Import

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28 Nov 2018

11th Global Supply Chain and Logistics Summit www.sclgsummit.org

Contracts - Considerations

Physical nature of the goods

Movement of the goods

Division of costs Transfer of risk

Responsibility for task

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28 Nov 2018

11th Global Supply Chain and Logistics Summit www.sclgsummit.org

SELLER BUYER SHIPPER CONSIGNEE BANKS CARRIER FORWARDER AGENTS PACKAGING INSPECTION PORT CUSTOMS WAREHOUSE CHAMBER

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28 Nov 2018

11th Global Supply Chain and Logistics Summit www.sclgsummit.org

Costs and Risk

How do you handle them?

TERMINATE

TAKE TREAT

TRANSFER

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28 Nov 2018

11th Global Supply Chain and Logistics Summit www.sclgsummit.org

Why? Assist trading What?

Responsibility of Carriage

Exp-Imp clearance

Costs & Risks

Title Payment Where? Sales Contracts When? from 1936 Who?

Potential issues?

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28 Nov 2018

11th Global Supply Chain and Logistics Summit www.sclgsummit.org

Real incident ..

Before

After

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28 Nov 2018

11th Global Supply Chain and Logistics Summit www.sclgsummit.org

EXW

Transport by? From where? Loading by?

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28 Nov 2018

11th Global Supply Chain and Logistics Summit www.sclgsummit.org

  • Removal – EXW, FAS, DDP
  • Unfold FCA in two Incoterms – Terrestrial and Maritime
  • FOB and CIF for container shipping
  • Creation of a new Incoterm: CNI
  • Two Incoterms based in DDP – DTP, DPP
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11th Global Supply Chain and Logistics Summit www.sclgsummit.org

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11th Global Supply Chain and Logistics Summit www.sclgsummit.org

Main Parameters

Documentation  Document of Title  Transport document  Quality / Quantity reports  Financial / Commercial  Insurance Goods

 Specific / Unascertained goods  Quantity –

Unit/Range/Tolerance

 Quality / Specification  Inspections

Payment terms

 Price  Currency  Mode of Payment  Credit days

Time Limits

 Credit validity  Shipment / Delivery  Document submission

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11th Global Supply Chain and Logistics Summit www.sclgsummit.org

Common modes of transaction

  • Open Account
  • Bills for Collection

– Documents against Acceptance – Documents against Payment

  • Letters of Credit

– Documentary Credits – Standby L/C

  • Advance Payment

Balanced security for Seller and Buyer.

RISKS managed

Buyer Seller Country Exchange control

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11th Global Supply Chain and Logistics Summit www.sclgsummit.org

Is L/C Risk-free?

1999 2003

400

3000 19

Metals Trading Company, Sharjah

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28 Nov 2018

11th Global Supply Chain and Logistics Summit www.sclgsummit.org

BLOCK CHAIN IN TRADE FINANCE TRACEABILITY TRANSPARENCY EFFICIENCY AUDITABILITY COLLABORATION SECURITY

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28 Nov 2018

11th Global Supply Chain and Logistics Summit www.sclgsummit.org

Understand the 3 flows Align the various contracts Assess risks and mitigation measures Quantify residual risks